U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 21084 / June 12, 2009 Securities and Exchange Commission v. ZNext Mining Corporation, Inc. and Elvira G. Gamboa, United States District Court for the Northern District of California, Civil Action No. CV 09-2611 (VRW) SEC SUES ZNEXT MINING AND ITS PRINCIPAL FOR FRAUD AND REGISTRATION VIOLATIONS The Securities and Exchange Commission today filed a complaint in the United States District Court for the Northern District of California against penny stock company ZNext Mining Corporation, Inc., formerly known as Pearl Asian Mining Industries ("PAIM"), and its principal, Elvira G. Gamboa.
The SEC's complaint alleges that from as early as 2004 through 2008, Gamboa caused PAIM to issue numerous materially false and misleading press releases and other disclosures, which gave the impression that PAIM owned and operated a viable gold mining operation in the Philippines. In reality, as alleged in the complaint, PAIM was and currently is nothing but a shell used by Gamboa to generate stock sale profits, and any gold mining operations that do exist belong to a separate Philippine company of the same name owned almost entirely by Gamboa.
The SEC's complaint further alleges that Gamboa issued the false and misleading disclosures to artificially sustain demand for PAIM stock. According to the complaint, from 2006 through March 2008, PAIM sold at least 1.9 billion shares of purportedly unrestricted PAIM stock to a penny stock promoter. Gamboa allegedly knew the buyer acquired PAIM shares for immediate resale and facilitated such resales by issuing stock certificates without restrictive legends and at times providing the buyer advance copies of PAIM press releases.
The complaint alleges that Gamboa profited from her misconduct by at least $1 million through misappropriation of PAIM's stock sale proceeds and an arrangement to sell 1.5 billion of her PAIM shares through the company's investor relations officer.
The SEC's complaint charges ZNext Mining and Gamboa with violating Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The Commission seeks permanent injunctions and civil penalties from ZNext Mining and Gamboa, and seeks from Gamboa an accounting, disgorgement, a penny stock bar, and an order barring her from serving as an officer or director of any public company.
PAIM was formerly a subsidiary of First Canadian American Holding Corporation, now known as Blackout Media Corporation, that was spun off in November 2003. Also today, the Commission sued Blackout Media and its former principal, Sandy Winick, in the Southern District of New York for illegal distribution of stock through such spinoffs. SEC v. Blackout Media Corporation and Sandy Winick, Civil Action No. 09 CV 5454 (GBD) (S.D.N.Y.); LR-21083 (June 12, 2009).
The Commission acknowledges the assistance of the Financial Industry Regulatory Authority (FINRA) and the Philippine Securities and Exchange Commission.
---------------------------------------------------------- From the Desk of Executive President Oct. 8, 2007
To all our Valued Shareholders,
On behalf of the Board of Directors of the Pearl Asian Mining Industries, Inc., (PAIM), and my capacity as the Executive President of this company, I am extending this full explanation and reasons for the defamations, the slanderous accusations, the libel and the slander by an emotionally upset former high management employee of PAIM. Mr. Gary Gotanco was and who had been terminated, yet cannot accept the fact that he had lost the high position, the high salary, the excellent fringe benefits and all other incentives he had been receiving from the generosity of the company and in particular the full TRUST that our Founder, Ms. Pearl Asian had bestowed upon him.
Mr. Gary Gotanco in our opinion who uses aliases, became vigilant and revengeful after he did not succeed to undermine and topple down our company~ PAIM, for his own selfish motivation to take CONTROL of the Company. Mr. Gotanco is now under National Bureau of Investigation (NBI) for criminal act and is subject for persecution for what he had done to the company and the rest of the management and specially our Founder. Strong evidences from the past 2 months had been gathered against him and he is schedule for a court hearing in due time as he tried to evade being served by our legal counsel the Law Offices of the Maulit/Valdez Associates. Please do not hesitate to contact our office and or our legal counsel: Chief Litigation Officer Atty. Ronald Bagasbas or contact me at e-mail: viperdax@yahoo.com
Furthermore, PAIM is working on gathering more evidences for the verification of his AKAs, though we all know that he is the only one who had access to all sensitive information and full knowledge of other facts that only a very close person to the Founder is capable of divulging such information.
Meanwhile, despite of these incidents, the New Dream Team continues to excel and soon PAIM will become a fully reporting company with revenues to show for, after all the “rotten eggs” and the dangerous “snake - gotanco” had been let go!
Moreover in justification to the truth of the laying off of the people that Mr. Gotanco had identified and who had left the company has no bearing or effect to any of the success of PAIM.
Gary Gotanco- was fired, but was able to resign immediately prior to his termination, because he had some inside people who tipped him that he will be fired. Gotanco, resigned immediately on Sept. 7th, because it will not look good to his credential that he was fired to this very high position. He personally doesn’t get along with a lot of the former employees and even the current employees because of his arrogance and attitude. Sensitive information about his firing can be obtained directly from our legal counsel. He is the 6th of former employees of PAIM who had intentions of taking full control of the company.
In retaliation and frustration, he used several aka’s in a very sour note by making friends with the people who loves to see PAIM- our company go down or go bankrupt.
Gotanco is the Judas of PAIM----and in our opinion is also aka “Marian Arroyo Escudero” who was passing false innuendos to the media.
CPA
1. Maribel Quinto- CPA(?) NOT CERTIFIED AND LICENSED. She was recommended by Mr. Gotanco who was his relative and a former Bureau of Customs employee, doing bookkeeping for PAIM. She was fired because she held material information on the accounting and did not finish the 1Q and 2Q in a timely manner. She continued to procrastinate and blames others for her poor performance. Prior to her firing, Gary Gotanco defended her, yet our Founder stood strong not to listen to the advice of Gotanco any longer. Maribel was the cause of the delay of all the accounting reports of PAIM. Final 2006 FS, 1Q & 2Q, 2007.
2. Cindy Caballero- CPA – yes and licensed, but inexperienced; just graduated and passed the test. After sending her to the Manila head office with Mr. Gotanco, Ms. Caballero suddenly resigned. Ms. Caballero admitted that she cannot do the Mining accounting because of her lack of experience. But whatever Gary told her during her 1 week stay in Manila, is a real mystery. However, Ms. Caballero is always welcome to come back if she wishes to, because in our opinion she can be an asset because of her talent!
3. Arlene Aguila- Geologist – She opted to resign instead of being fired. She has been with the company for only 4 months when her true color came out. She was entrusted by our Founder to head the Binasan Mine site to take care of business of producing gold as planned. However, during her leadership, there were more troubles in the mine site: We found out from our IP Natives’ admission that she had planned to BLOW OUT the Mine site by putting dynamite in the mine site!! The other reason perhaps she cannot get along with the people of the mountains was that she had been found sleeping with the Chief Geologist in the mine site, instead of doing her job, and was the cause of the breakup of Regie Selvano, Chief Geologist and his girl friend. Arlene had caused more detriment in the company relationship than being productive by passing false information against each other. She used the “cliché” method to alienate the female employees who in Cagayan De Oro.
4. Regie Selvano, Chief Geologist, resigned instead of being fired! The company does not need an In-House Geologist. The company is now using an independent company specializing in Geology. We just realized that having a geologist in house is not compatible with the mining engineering group. We have found out that both Arlene and Regie were the cause of the resigning of our good Gold Mapper- George Carpio and Field Geologist- Bart Apuyaw. They are now back with the company and working happily.
CHEMICAL GEOSERVICE DEPARTMENT:
5. Elvis Hidalgo- Chief Metallurgist- resigned for reason unknown, other than being gauded by gary gotanco to resign to accomplish his viscious mission. Mr. Hidalgo is not a very strong leader and he is just a puppet to gary gotanco. The Founder visited him to confront Elvis but he won’t even face the Founder. He left without saying any word at all to the Founder, yet followed all the false advice of gary gotanco.
6. Rochelle Laylay- Senior Chemist- un-Licensed- Though she did not pass the Chem. Board test, our founder gave her another chance. She was given a responsibility to take care of the money payrolls and attendance, reporting and getting permits. During her time she had lost 2 payrolls and a lap top. She was still given a chance! But when asked why she resigned, her explanation was that the Founder does not love her anymore! (Arlene Aguila- had been spreading destructive rumors that the Founder doesn’t care about Rochelle and that Arlene is now the Founder’s favorite).
7. Dahlia Honey– Junior Chemist- Unlicensed.- she was recommended by Rochelle. Besides, she spends more of her time in the internet chatting and even sent a memo to our investor Dr. Wellbrook inviting to chat with her. This seemed that these ladies had nothing else to do, yet get high salaries compared to all the employees according to the Philippines standard. She resigned too because Rochelle resigned.
8. Mike Penaloza- The Civi Engineer. His performance was not as impressive. The Founder had tempted to let go of him several months ago, because of information that he used to cater women with ill reputation for our engineers in the staff house. This is not acceptable!! Last May or June, he did not report to the company and lied as to his whereabouts and yet requested for a full payment. We are glad that he quit on his own, because now we have a better and dependable team of Civil Engineers.
9. The General Frank Acosta – resigned prior to getting terminated by the Founder, after the Founder realized that the General had other ulterior motif of taking over the company as well!
PLEASE NOTE THAT RESIGNATIONS OF THE ABOVE PEOPLE HAD MADE ROOM FOR A BETTER PROGRESSIVE AND PRODUCTIVE COMPANY.
The creation of the
“NEW GOLDEN DREAM TEAM”….like
Martin Luther King said “ I HAVE A DREAM!”
This is what we call our new:
NO-NONESENSE WORK-ETHICS - PERFORMANCE-PRODUCTIVE REVENUE STYLE OF MANAGEMENT.
All the new employees, technical, administrative support, skilled and unskilled workers are hired on a project to project basis only! When the performance is poor or they steal or they defame the company, they are automatically let go!
Like Donald Trump said “you are fired GARY GOTANCO!” who had falsified his credentials, who had caused to brain wash fellow employees with false information, libel and slander against the company and its Founder, and perhaps who maybe caught smuggling oil behind the company’s back using his high position in the company by getting an extra 3.5% commission on the side.. (CORRUPT PRESIDENT/CEO).
And the TRUTH shall set PAIM/ PROL free from all of these kinds of employees and all false accusations!
We now have replaced these people with highly credentialed, licensed, dependable and competent management group!!!
Should you have any question please do not hesitate to contact me personally.
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