Ngen Technologies Holdings Corp. (fka NGRP)

[Det_Robert_Thorne]

The 2015 CTXV lawsuit provides insight on Rhee

As I mentioned this past Sunday, Rhee's companies seem to be badly run, or scams. I also stated that I would post some of my DD as soon as Conway was out and Rhee and his team in charge of LIBE. And before someone points out that Ed Carter is the CEO now, not Rhee, I will note that Rhee is an equal shareholder and the CFO.

Here it is:

On March 4, 2015, one of Rhee's lenders to CTXV, EFT Holdings, Inc, filed a complaint alleging breach of covenant and fraud, among other things, against Cliff Rhee, CTX Virtual Technologies, and another company (lender?) and individual who prepared the documents. EFT provided at least $2.5M in the form of convertible debt to CTXV, and was claiming that the company was misrepresented to them as shown in the excerpts below, and wanted their $2.5M back, plus damages.

The lawsuit claims that, CTXV didn't own its factory, Rhee sold Celluon after geting the money, the big contracts weren't signed, that sales didn't pan out, and that Rhee and CTXV didn't get the stock listed (so that EFT could convert and dilute).

Rhee resigned as CEO in July, 2015, four months after this lawsuit was filed, and CTXV essentially died when he left.

Eventually, on Sept 6, 2017, in a default judgement, the judge awarded EFT $2.5M, plus costs, though no punative damages, because in the motion for a default finding, EFT hadn't provided enough info as to how it was damaged.

This judgement was three years ago, and a year before Rhee aquired GRAS in another RM attempt. Has Rhee repaid the money owed EFT, or is a lot of the money from the recent notes issued by GRAS intended for that purpose --- and is now LIBE's problem?

Here are the relevant excerpts from the complaint (downloaded from PACER) with annotations by me, followed by the final page of the default judgement. Note how similar the the situation was then, as it is now:







The default judgement: