Plastic2Oil Inc (PTOI)

[Artiztic1]

It looks like Honest John has some explaining to do.

Based on information obtained from the Enforcement staff, the Company believes that the staff may also recommend naming one or more CURRENT and former OFFICERS of the Company as defendants in the proposed lawsuit.


The CURRENT list of company Officers:


John Bordynuik
President, CEO and Director

John Bordynuik
Chief Financial Officer

Jacob Smith
Chief Operating Officer and Director

Jacob Smith was appointed in 2010 which rules him out for 2009's fraudulent filings.

http://www.sec.gov/Archives/edgar/data/1381105/000121390011003733/f10k2010a1_jbi.htm


Currently, the only officer left from the time period in question is Honest John. Maybe, Honest John can explain to the SEC, how one has a arms-length agreement with oneself.

This is an arms-length agreement between the Company and JBI by President and CEO John Bordynuik, who is the majority shareholder in both 310 Holdings and John Bordynuik Inc.


8-K 310 Holdings, Inc - Asset Purchase Agreement - assets of John Bordynuik, Inc. (“JBI”)


Item 1.01. Entry into a Material Definitive Agreement.

On June 25, 2009, 310 Holdings, Inc., (the “Company”) entered into an asset purchase agreement (the “Agreement”) to purchase and assume certain assets of John Bordynuik, Inc. (“JBI”), a Delaware corporation. This is an arms-length agreement between the Company and JBI by President and CEO John Bordynuik, who is the majority shareholder in both 310 Holdings and John Bordynuik Inc.

www.sec.gov/Archives/edgar/data/1381105/000121390009001582/f8k062509_310holdings.htm



Based on communications with the Enforcement staff, the Company believes that the proposed lawsuit relates to the Company’s subsequently restated financial statements for the third quarter of 2009, which were included in its Form 10-Q filed on November 16, 2009 and its financial statements for the year ended December 31, 2009, which were included in its 2009 Form 10-K filed on March 31, 2010. The restatement concerned the Company’s valuation of media credits, accounting for certain acquisitions, and equity issuances.

www.sec.gov/Archives/edgar/data/1381105/000121390011003788/f8k071411_jbi.htm



NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RESTATEMENT

Restatement

The Company has RESTATED its previously issued consolidated financial statements for the period ending September 30, 2009 for matters related to the following previously reported items: (1) the original accounting for the acquisitions of Javaco and Pak-It, which was improperly recorded as a reverse merger, whereby pre-acquisition operations of the acquired entities were erroneously reflected in the operations as originally reported, and (2) the valuation and subsequent impairment of media credits. The accompanying financial statements for the quarter ending September 30, 2009 have been RESTATED to reflect the corrections. The effect of this RESTATEMENT to the financial statements is a decrease in total assets of approximately $13,187,000, an increase in net loss for the nine months ended September 30, 2009, of approximately $1,110,000 and a decrease in equity of $10,343,000.

The following is a summary of the restatements for the nine months ended September 30, 2009:

Write off of previously recorded media credits $ (1,000,000)

Decrease in income due to change in acquisition accounting for Pak-It (1,616,600)

Decrease in income due to change in acquisition accounting for Javaco (596,213)

Decrease in income due to change in acquisition accounting for John Bordynuik, Inc. (126,569)

Decrease in operating expenses due to change in acquisition accounting 1,256,983

Increase in net interest expense due to change in acquisition accounting (141,468)

Increase in other income due to change in acquisition accounting 45,110

Increase in net income from reclassifications and timing corrections 1,068,323

Total reduction in September 30, 2009 net earnings $ (1,110,434)

Decrease in the valuation of media credits $ (9,997,134)

Decrease in the value of assets acquired from John Bordynuik, Inc. (572,102)

Decrease in the value of goodwill and other assets recorded in conjunction with the acquisition of Javaco and Pak-It (2,360,990)

Decrease in assets from other adjustments (256,432)

Total reduction in September 30, 2009 total assets $(13,186,657)

www.sec.gov/Archives/edgar/data/1381105/000121390010004885/f10q0909a1_jbi.htm



I'm really curious as to how one has a legal arms-length agreement with oneself.

Term containing arms length on BusinessDictionary.com

A type of transaction whereby a willing seller and a willing buyer who have no conflicts of interest with regard to the transaction make an agreement ...

www.businessdictionary.com/definition/arms-length-price.html


What is a non-arms length transaction?

Most real estate transactions are actually arms length transactions. An arms length transaction in real estate is when you have both a seller and buyer who have no relationship to each other and who act independently of each other. Because of this kind of relationship, it’s safe to assume that this transaction will be fair and equitable to all parties involved.

A non-arms length transaction in a real estate transaction would be between family members or relatives in which there could be some sort of conflict of interest. Meaning that a transaction between a father and son could yield a different result. It could result in a lower sales price than what the market demands. Or that one of the parties involved would be giving back a more than normal concession to help purchase the new home, such as seller concessions.

http://www.fhaloansfhamortgages.com/2011/02/23/nonarms-length-transaction/