Plastic2Oil Inc (PTOI)

[Toxic Avenger]

Top 1 reason JBI's defense is toast (Hint: notice any mention of how Domark valued media credits?). And that's just on the media credits side.

"44. The $9,997,134 valuation was allegedly based on the price that Domark supposedly paid for the Media Credits when it purchased them from a company called Media4Equity LLC (“Media4Equity) on August 13, 2008. However that valuation was severely flawed given JBI had paid $1 million to purchase the Media Credits on the open market. As such, the $1,000,000 that JBI paid Domark as consideration for the Media Credits was both a reliable basis for valuing the Media Credits and a correct reflection of the perceived value of the Media Credits at the time of the transaction.

45. JBI deliberately mislead investors and the public by using the purported face value of the Media Credits, rather than their actual cost. In doing so, the Company overstated the total value of its assets by a minimum of $8,997,134 (the $9,997,134 value reported less the actual $1,000,000 paid) as of both September 30, 2009 and December 31, 2009.

46. Because the Media Credits constituted one of JBI’s biggest assets as listed on their financial statements, the deliberate misstatement of their value served to drastically inflate the value of the Company in the eyes of the investing public. The Individual Defendants then used the inaccurate financial statements to obtain more than $8.4 million from private capital investors. "

Bottom line, even if the credits were worth $10 million to Domark (which itself seems unlikely), JBI's buying them for $1 million makes them clearly worth at most $1 million to JBI.
Q.E.D.