Plastic2Oil Inc (PTOI)

[callthebank]

How many PIPE offerings have there been up to now?

How big of a rug is needed to SWEEP this under?

JBI's FRAUD RECONFIRMED

"When it came to reporting the credits in JBI's third

quarter results, Mr. Bordynuik had his in-house

accountant record them at the $9.99-million value.

He told her in a Skype conversation to

"please get the pro formas as juicy as you can

so I can acquire a chemical company for less."

The overstated value carried over into the

actual Form 10-Q that the company later filed with

the SEC.

Although Mr. Bordynuik said the credits were "audit

proof," the accountant had some concerns, the SEC

says. She told him that it would be better to value

them at the $1-million that the company had paid for

them. A business consultant that JBI had hired also

expressed the same view, pointing out that one day

prior to the transaction the company had no assets

and the very next day it had nearly $10-million.

According to the complaint,
Mr. Bordynuik did not follow through on the advice

of either the consultant or his accountant,

and had the credits listed on the balance sheet

for $9.99-million. In reality, the credits had no value,

"and certainly not the grossly overstated value" the

company reported, the SEC says.

The complaint also cites Mr. Bordynuik for using an

auditor who was in jail when the

company's year-end arrived. On Nov. 28, 2009,

just months before the year-end financials

were due, the auditor (a principal of Florida firm

Gately & Associates) was arrested for violation of

probation, drinking and driving, and possession of

marijuana. According to the SEC, when Mr.

Bordynuik learned of the arrest he not only insisted

on continuing to use the auditor, he also agreed to

pay for the auditor's criminal lawyer and for an

alcohol treatment program. The SEC says this

dissolved any notion of independence between the

auditor and Mr. Bordynuik.

While JBI claimed that another auditor at Gately

worked on its 2009 annual financials,

there is no evidence that anyone at Gately actually did a proper audit,

the complaint states. Mr. Bordynuik did not consult with

anybody at Gately about the media credit and no one

at JBI was able to contact the auditor for a significant

period of time before the company's year-end filing.

Despite this, an employee at Gately applied the firm's

electronic signature to JBI's Form 10-K,

falsely representing that there had been an

audit, the SEC claims. (The Public

Company Accounting Oversight Board has since

barred the firm from performing audits, citing

matters unrelated to JBI.)

In addition to the allegations against Mr. Bordynuik,

the SEC claims that the company's chief financial

officer, Mr. Baldwin, did little to question the value of

the credits. After taking over as CFO on Jan. 1, 2010,

he saw that they were the largest single asset on the

company's balance sheet. Despite that, he did

nothing to learn about their value beyond some

discussions with Mr. Bordynuik, the complaint

states.

On May 21, 2010, JBI issued a news release stating

that its previously issued financial results

should not be relied upon. It later

restated the results, writing down the value of the

media credits to nil.

The SEC is seeking disgorgement

of ill-gotten gains, appropriate civil penalties, and

officer and director bans for Mr. Bordynuik and Mr.

Baldwin."

http://www.stockwatch.com/News/Item.aspx?bid=Z-C:*SEC-1916110&symbol=*SEC&news_region=C