CardioVascular BioTherapeutics (fka CVBT)

[walhall]

Fraud trial of Cardiovascular Biotherapeutics CEO Calvin Wallen III begins in February 2019

We are approximately a month away from the start of the bankruptcy fraud trial of Cardiovascular Biotherapeutics CEO, Calvin Wallen III in February 2019. Mr. Wallen has been accused by the bankruptcy trustee for Tauren Exploration of stealing over $14 million from the company and diverting it for personal purposes using other companies he controls as well as to his own bank accounts. If you read the complaint by the bankruptcy trustee, the trustee provides the dates and amounts of the allegedly illegal cash transfers, and states that there are no corresponding business purposes that justifies those transfers. Additionally, the trustee alleges that prior to Tauren Exploration's bankrtupcy, Tauren falsified documents to cover Mr. Wallen's tracks and presented falsified information to the court. If this is true, what it suggests is that any information coming from companies Mr. Wallen is involved with has to be considered suspect.

Here is a link to the court case documents:

Tauren Exploration, Inc. Liquidating Trust vs. Calvin Wallen III:
https://www.pacermonitor.com/public/case/24021776/Tauren_Exploration,_Inc_Liquidating_Trust_v_Wallen,_III

Tauren Exploration, Inc. Liquidating Trust vs. Pandale Holdings, Inc. et. al:
https://www.pacermonitor.com/public/case/24021775/Tauren_Exploration,_Inc_Liquidating_Trust_v_Pandale_Holdings,_Inc_et_al

Tauren Exploration, Inc. Liquidating Trust v. Fossil Operating, Inc. et al:
https://www.pacermonitor.com/public/case/24021777/Tauren_Exploration,_Inc_Liquidating_Trust_v_Fossil_Operating_Inc_et_al


If Mr. Wallen is found guilty of these alleged crimes, I believe that CVBT is going to be very quickly pushed into involuntuary bankruptcy once and for all. Why? Because the bankruptcy trustee is going to look to recover all the monies stolen by Mr. Wallen, and my best guess is that the trustee will be able to show a court that at least some of those monies ended up in CVBT. If that happens, the bankruptcy trustee is going to want to ensure those assets do not get diverted, and will push hard to get CVBT into bankrtupcy as quickly as possible to protect his assets and position. But I'm not an attorney, so who knows how this will play out. But none of it is good for CVBT, that's for sure.

Investors DEFINITELY run in the other direction from people and companies who have a history of falsifying documents and stealing money. If Mr. Wallen is convicted, CVBT is finished in my opinion, given that he has been the company's only funding source.