Plastic2Oil Inc (PTOI)

[arvitar]

Perhaps whoever manages the Luskin Family Trust blows more in one hour gambling in Las Vegas, purely for entertainment, than he invested in JBI.


How could anyone, other than the manager of the Luskin Family Trust, know why the Trust bought DISCOUNTED SHARES in a money-losing penny stock?

- Maybe he wanted to gamble with a piddling amount of the Trust's money on some penny stock, purely for entertainment.

Or...

- Maybe they were misled by JBI about true value of the company, as were investors in a previous PIPE.

"As a result of JBI's inflated financial statements, more than $8.4 million was raised from investors. Soon after raising these funds, JBI announced it would be restating its 2009 financial statements." [Hmmm. That would be kinda like getting a Juicy SAIC report to convince PIPE investors, and then saying it's unreliable a couple months later.]

"But the story leading up to the restatement is even more interesting. JBI hired an accountant who was not a certified public accountant, and in fact only had six credit hours of accounting classes, to prepare its financial statements using the $10 million inflated figure for the media credits. According to the SEC complaint, at one point Bordynuik sent an instant message to the accountant stating, "please get the pro formas as juicy as you can so I can acquire a chemical company for less.' a reference to JBI's plans to use the inflated financial statements as a means of acquiring other companies needed to pursue the Plastic20il venture. In this case, 'pro formas' is a reference to unaudited financial statements that would be presented to (and designed to deceive) investors."

Pages 89 – 92
http://books.google.ca/books?id=bCcNmJ0KK00C&lpg=PA91&ots=YCBdtLHXE5&dq=Financial%20Statement%20Fraud%3A%20Strategies%20for%20Detection%20and%20Investigation%20Bordynuik&pg=PA89#v=onepage&q=Financial%20Statement%20Fraud%3A%20Strategies%20for%20Detection%20and%20Investigation%20Bordynuik&f=false