Well I can't seem to find a 280 million share figure here....Can you explain?
16. On November 6, 2006 Corporal Gordon Aristotle and Senior Investigator Darrell Nay, surveillance officers with the OSC/RCMP/IDA Joint Securities Intelligence Unit ("JSIU"), attended at the Sulja Bros. lumber yard In Harrow, Ontario. At that time, the officers met with and recorded a voluntary statement from Vucicevich and DeVries regarding Sulja Bros. Attached hereto as Exhibit "12" is a copy of a transcription of the interview with Vucicevich and DeVries on November 6, 2006.
17. During the interview, Vucicevich advised that Sulja Nevada began trading on the Pink Sheets as a result of a reverse merger with Loftwerks, a shell company that Vucicevich claimed owed a significant debt to Sulja Bros. and Vucicevich (pp. 18-19, 52-53 and 56 of Exhibit 12). Based on Vucicevich's statements to JSIU, it appears that, in settlement of the debt, Sulja Nevada merged with Loftwerks (pp. 19 and 52-52 of Exhibit 12)
18. It appears that the merger occurred in or around July 2006 and that, following merger, Loftwerks was renamed Sulja Nevada and has continued to trade as an over-the-counter security as quoted on the Pink Sheets (Exhibit 1, and p.7 of Exhibit 2).
19. At the time of the merger, Vucicevich advised that "we issued 300 million shares" of Sulja Nevada in addition to the existing float of 500 million shares that had been issued by the company as Loftwerks, for a total of 800 million shares outstanding (pp.18 and 35
of Exhibit 12).
20. Vucicevich further advised that the shares were issued by Sulja Nevada to "raise capital for Sulja Brothers so that Sulja Brothers can expand [...]" (pp. 19-20 and 22 of Exhibit 12).
21. Vucicevich went on to explain that Su1ja Bros. entered into share selling arrangements, which he described as "trust" arrangements, with employees of Kore, Pranab Shah and Tracey Banumas, and members of the Sulja family, Samuel Sulja and John Sulja (collectively referred to as the "Nominees"), whereby they were paid to trade
newly issued shares of Sulja Nevada on behalf of the company (pp. 26-31 of Exhibit 12).
22. From the interview, it appears that the Nominees opened brokerage accounts at TD Waterhouse and RBC Action Direct (the "Nominee Accounts") for the purpose of trading the securities of Sulja Nevada and that shares of Sulja Nevada were received by journal entry into the Nominee Accounts through the company's transfer agent (pp. 26-31 and 34 of Exhibit 12).
23. Based on Vucicevich's statements to JSIU, it appears that the shares were subsequently sold out of the Nominee Accounts at his direction. It further appears that the proceeds of the trading went back, to Sulja Bros., either directly and/or through Kore, to
to pay debts owed by Sulja Bros., including to the Sulja family for their interest in the company, and to expand and operate the business (pp. 6, 19-22 and 27 of Exhibit 12). Vucicevich explained that the Nominees had entered into trust agreements which set out the terms of this share selling arrangement (pp. 26 - 31 of Exhibit 12).
24. Based on further statements made by Vucicevich during the interview, it appears that Vucicevich directed the trading by telling the Nominees when to trade and how many shares to trade at a given price (pp. 27-30 of Exhibit 12). Vucicevich stated in the interview that he directs the trading to keep the price at $.012 (pp. 20, 40 and 67 of Exhibit 12). He also advised that they have raised $7.8 million by trading approximately 150 million shares in this manner (pp. 20-21 and 61 of Exhibit 12).
25. Vucicevich further explained that the Canadian and U.S. operations of Kore are involved with Sulja Bros. to oversee the expansion of Sulja Bros. and that Kore U.S. "[... ]at this point, they're controlling 280 million shares" (pp. 13 and 27 of Exhibit 12).
26. Vucicevich advised that he is the directing mind of Kore's operations in Canada and that DeVries is the operating mind of Kore in the U.S. (p. 28 of Exhibit 12). Vucicevich advised that DeVries is responsible for the share structure of Sulja Bros. and "is the one that is authorized to distribute the shares" (p. 41 of Exhibit 12).
27. Vucicevich indicated in the interview that he had provided funding to Sulja Bros. "long before Sulja went public" (p. 12 of Exhibit 12) and that in accordance with the "agreement" that he signed with the Sulja family "in the beginning", Kore will be remunerated for its involvement in expanding Sulja Bros. (p. 72 of Exhibit l2).
AI
