Plastic2Oil Inc (PTOI)

[Artiztic1]

Negative, and nothing but pure ridiculous fiction.

The number one piece of evidence can be found in Section 34. Baldwin "acknowledged" that he knew prior to the AGM of the need to restate and that the credits were worthless, yet he with held that material information from the shareholders.

Bordynuik was also aware at the time of the AGM that the media credits were significantly overvalued in JBI’s financials and that the company would have to restate as a result.

This information needed to be disclosed immediately as this information was indeed material. Yet, neither of them came clean till after the AGM as they were still in the middle of the solicitation of the newest PIPE.

Timeline:

March 31st 2010 filed the 10k Almost immediately afterwards Baldwin acknowledges that he is aware the Media Credits are worthless.

Then comes the AGM April 24th 2010, the one in which they failed to disclose the material event they were both aware of.


However, on May 20, 2010, JBI, Inc., (the “Company”) consummated a confidential private placement (the “Private Offering”) with certain accredited investors for the issuance and sale of 488,779 shares of the Company’s common stock, $0.001 par value per share (the “Common Stock”) at per share price of $4.00 for aggregate offering proceeds of $1,955,116.

http://www.sec.gov/Archives/edgar/data/1381105/000121390010002141/f8k052010_jbi.htm


con·sum·mate

to complete (an arrangement, agreement, or the like) by a pledge or the signing of a contract: The company consummated its deal to buy a smaller firm.

Then on May 21st 2010 right after consumating the PIPE offering, they announced what they knew all along that the Media credits were worthless.

In the SEC's own words:


34. Almost immediately following the filing of JBI’s Form 10-K on March 31, 2010, Baldwin, Bordynuik, the business consultant, outside counsel, and newly hired accounting and audit firms consulted about perceived problems associated with the 10-K filing.

Baldwin himself acknowledged that by at least this time he became aware that GAAP required the media credits to be booked at cost, rather than the valuation used, and approved by him, for the Form 10-K

By this time Baldwin also reviewed information relating to press articles and other media obtained by JBI that were charged against the media credits and knew that the media credits had
little to no real value.

As a result, Baldwin knew, prior to JBI’s Annual General Meeting (“AGM”) on April 24, 2010, that listing the media credits at $9.997 million was, at the very least, a substantial overvaluation and would have to be restated.

35. Despite this understanding Baldwin made a presentation at JBI’s Annual General Meeting, attended by JBI shareholders, that misrepresented JBI’s financial position. Baldwin failed to inform the shareholders that the media credits were erroneously booked and would have to be written down significantly and potentially in their entirety.

Instead, Baldwin made misrepresentations about the media credits being a current asset at a nearly $10 million valuation that would not be on the balance sheet at the same time the next year because they would need to be expensed.

In making these misrepresentations Baldwin failed to inform the shareholders that he then believed the media credits to be, at a minimum, overvalued by nearly $9 million, and at
worst, completely worthless and needing to be written off entirely.

Baldwin also failed to inform the shareholders that he believed the company most likely would need to restate its financial statements as a result of the overvaluation of the media credits.

36. Bordynuik was present at JBI’s Annual General Meeting and was aware, both before and after, of the representations Baldwin made about the value of the media credits. At the time Bordynuik also was aware that the media credits were significantly overvalued in JBI’s financials and that the company likely would have to restate as a result.

At the time of JBI’s Annual General Meeting, Baldwin and Bordynuik both were aware that JBI was still soliciting
investors for one of the PIPES that ultimately raised approximately $8.4 million during the
period of overstatement.


http://www.sec.gov/litigation/complaints/2012/comp22220.pdf

Like I said -- you can immediately throw in the garbage what you call the #1 piece of evidence -- internal discussion about pro forma numbers, numbers which according to the SEC themselves have no defined meaning and no uniform characteristics and is derived by selective editing.