Legal Issues
As many of you know there are legal actions in motion with respect to SOLI, Charles Scott, CareClix and such entities. I've reviewed / researched a lot of information and this is where I stand.
Assumptions / Given:
• CS is aware of our actions. The speed of acquiring this shell company (XSVT) and reporting financials is not purely coincidental (opinion).
• He broke FL Law Chapter 607, Corporate Records. If you want to say he's that P.O. box in Melbourne.
• He broke VA Law Article 18, 13.1-770 Corporate Records. For the office in Alexandria.
• CS is under investigation in Virginia for potential fraud related to convertible notes.
• As shareholders, we would like everything to come clean and have our investment. CareClix is operating, although losing money (reportedly). CS may come clean, maybe not.
• CS failed to provide information, knowing he should. Even with release of the financials, he's still in violation of lawful reporting requirements. No question.
Some of my assessment:
• Lots of blind spots, smoke and mirrors. (multiple corporate entities, VA vs. FL, etc) If left alone, expect CS to decide in his interest not all shareholders. (based on history)
• Malfeasance / fraud seems clear to me, but the burden of proof is a high bar.
I want to see:
• Continued pressure to influence future decisions, to keep CS as honest if possible. In the sense that, doing what's 'right' is CS's best course of action.
• I'd like Virginia investigation broadened to look at reporting and corporate malfeasance / fraud.
o Herbal Innovations sale and resale as criminal fraud / corporate malfeasance. (ref VA code Ch 18.2-186).
o Fraudulently claimed CHII debt as criminal fraud / corporate malfeasance. (ref VA code Ch 18.2-186)
o Failure to meet meeting and reporting requirements VA Code Ch 13.1 Articles 8, 18.
o Failure to meet the requirements of VA Code Ch 13.1 Articles 12 (Mergers and Share Exchanges)
• As shareholders we have a right to know: per VA Code Chapter 13.1 Article 18
o Copies of all board meeting notes, shareholder meetings, and any other meeting where material decisions were made.
o Shareholder records and, in particular, records of distributions of shares to Charles Scott, along with minutes of meetings that authorized those distributions. (With SEC filings) And a detailed history of share structure and ownership of primary shareholders. (there is more as well)
