Case 2:11-cv-03718-MMB Document 67 Filed 01/25/13 Page 23 of 23
Dartmouth Dan:
Please see the case above, Defendants have pled sufficient facts to state claims of fraud and negligent
misrepresentation by Hand during the negotiation and consummation of reverse merger
agreement. Defendants allege that Hand failed to disclose the truth about the Qualsec investors’
identities. They claim he invented fake identities and addresses for directors in those companies,
issued a fake Corporate Resolution of the Qualsec Board, and withheld information about his
true control over those companies from Bukstel and VitaminSpice. (Amended Complaint ¶¶ 19,
20). Bukstel and VitaminSpice relied on Hand’s misrepresentations in consummating the reverse
merger on September 28, 2009, and both parties suffered losses (the company, to its share price
and market value, and Bukstel, to his holdings in VitaminSpice) when Hand used his position of
control over 17% of VitaminSpice’s shares to consummate a pump and dump scheme. These are
sufficient allegations of common law fraud and negligent misrepresentation.
***
For the forgoing reasons, Defendant and Third-Party Hand’s Motions to Dismiss the
Amended Counterclaims and Third-Party Claims are denied. An appropriate Order follows.
I was unable to see where Sterling Hillard has withdrawn or where Vitamin Spice is back in any bankruptcy proceeding, I suppose you got that off Pacer, can you copy and paste it on here please?
Thanks
