Genius Brands International Inc (GNUS)

[PIbecky]

Re: Due Diligence of JC Lee with POW Entertainment

Dear Andy

I am a licensed Private Investigator and a shareholder of Genius Brands and POW Entertainment. Over the last few years, I have investigated POW CEO Gill Champion's conduct and have identified numerous SEC violations and misrepresentations regarding the operation of POW Entertainment.

As Genius Brands conducts its due diligence in connection with the announced Joint Venture between Genius and POW, I would like to present you with information derived from Hong Kong creditors of POW Entertainment's holding company First Creative. They are concerned about the proposed Joint Venture being used to cover up a misappropriation of a $1mm Reserve Fund that was a crucial part of the Camsing acquisition of POW.

As an investigator that has followed the disturbing actions of Gill Champion as CEO of POW, which violates various SEC regulations and other self-dealing that served to defraud shareholders. I feel compelled to bring to your attention the current default that exists in payment of 1.5 years of salary obligated under the POW/ Camsing Employment and Rights Assignment made by Stan Lee to POW before he died.

Failure to pay JC Lee $125,000 per year after her counsel made demand has triggered a default that needs to be remedied or may enable Ms. Lee to rescind the rights that Genius believes it is bargaining for.

I strongly recommend a careful accounting of the $1mm Reserve Fund that may have been misappropriated by POW Director Rachel Long, as is believed by Chinese creditors, along with other obligations that POW may be in undisclosed default.

More will be coming out in time!