CardioVascular BioTherapeutics (fka CVBT)

[walhall]

Turmoil at Cardiovascular Biotherapeutics (CVBT), Part 4

I received the proxy statement for the upcoming annual shareholder's meeting from my brokerage firm yesterday. And there's something very significant in it that so far no one has mentioned:

MICKAEL FLAA IS BEING DROPPED FROM THE BOARD OF DIRECTORS OF CVBT, OR HAS ALREADY LEFT.

So not only has Mickael Flaa been fired/quit as President of the company, he has also either been forced off/resigned from the BOD. However, we don't know WHY he has left the company, as the company has not made any comment whatsoever which is shocking given that he was the PRESIDENT of the company and the only long-term player left.

Wow. This is big news. And it's telling that CVBT's leadership (who rather obviously posts anonymously over this message board even as they don't return shareholder phone calls or otherwise communicate) has said nothing except to denigrate Mr. Flaa's importance. That CVBT has said nothing makes me think Mickael Flaa left of his own accord, because if he was terminated, I believe given his longevity and importance the company would have said something.

So why would Mr. Flaa leave CVBT after spending 15+ years at the company? We don't know for sure, but it's my theory that he sees the writing on the wall, and that with the upcoming bankruptcy and fraud trial of Calvin Wallen scheduled for October 28, 2019, Mr. Flaa probably knows that CVBT, which has been long insolvent, is on the verge of complete collapse. I suspect he came to the conclusion that it would not be in his best interests to go down with the sinking ship.

For those who are new to the story, Calvin Wallen III, CVBT's largest shareholder as well as its Chairman and CEO, is accused by the U.S. Government Bankruptcy Trustee for Tauren Exploration, the company he was running prior to taking over CVBT, of allegedly stealing $14 million from Tauren. The complaint by the Bankruptcy Trustee states the dates, amounts, and accounts where the money was allegedly illegally siphoned to, either to Mr. Wallen personally or companies he owns and controls that are not Tauren. The Bankruptcy Trustee has also alleged that Mr. Wallen falsified documents and submitted them to the bankruptcy court to attempt to cover his tracks. Calvin Wallen has successfully delayed the trial which was originally scheduled for June 2018, but it does appear that the trial will take place starting October 28, 2019.

Having read the complaint, I really wonder what possible arguments Wallen's attorneys can make against the overwhelming evidence that the prosecution has. But time will tell, and I'm not a lawyer. If the Bankruptcy Trustee wins the case--and I'll go back to what an attorney friend told me, "The U.S. government does not lose cases like this," I believe the Bankruptcy Trustee is going to quickly look to recover the stolen money. And guess where some or all of it likely ended up? Yes, there are very compelling reasons to believe that some or all of the monies went into CVBT. I believe the Bankruptcy Trustee is going to say post-conviction, "That's my money, and I'm getting it back." If so, farewell CVBT.

Here are the links to the court records in the related Calvin Wallen bankruptcy and fraud cases:

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