Post by
HeyRick on Dec 05, 2006 2:30pm
I guess this is what bbl is talking abouy
Golden Arch president named in new fraud lawsuit
2006-12-05 14:22 ET - News Release
Mr. George Sharp, former SEECAN president, reports
FORMER SAFE ENVIRONMENT ENGINEERING, CANADA, INC. PRESIDENT ANNOUNCES CIVIL ACTION BROUGHT AGAINST GOLDEN ARCH RESOURCES, LIMITED
Former Safe Environment Engineering Canada Inc. (SEECAN) president, George Sharp, has filed a civil action for breach of contract and fraud and has named Golden Arch Resources Ltd., its president, Les Kjosness, and Rod Blake, an account manager in the Vancouver office of Canaccord Capital Corp., as defendants. Mr. Sharp's action was filed in the Los Angeles County Division of California Superior Court (docket No. BC362855) and is expected to be served upon the defendants imminently.
In his complaint, Mr. Sharp alleges that the defendants deceived him in order to relieve SEECAN, a delisted Vancouver entity, of its mineral properties, including the Abbott-Wagner and Red Elephant claims. The defendants recruited Mr. Sharp from California to become a director and president of SEECAN, expressing a desire to return the company into compliance with securities regulations. At the time, both Mr. Kjosness and Mr. Blake were significant stockholders in both SEECAN and Golden Arch and Mr. Blake, in his capacity as an account manager, had a large portion if not a majority of SEECAN's stock in his client's accounts. Mr. Sharp alleges that he was promised autonomy and whatever financial support necessary to meet the goals. On Dec. 3, 2003, under Mr. Kjosness's and Mr. Blake's urging, SEECAN's board of directors named Mr. Sharp a director and president by majority vote and Mr. Kjosness and Mr. Blake began to write personal checks to SEECAN to cover operational expenses.
As president, Mr. Sharp brought successful legal action against SEECAN's former president, in order to retrieve the company's records and properties. Golden Arch then negotiated the mineral property rights, held by SEECAN in exchange for some cash. Once the letter of intent was signed, all financial support for Mr. Sharp's efforts ceased.
The complaint accuses the defendants of making false representations to Mr. Sharp in order to induce him to accept the position of president and enable the defendants to maneuver the properties away from SEECAN. Mr. Sharp alleges that Mr. Kjosness and Mr. Blake never had any intention of reviving SEECAN as a significant business and that his hire was only to be used as a pawn in the scheme.
The complaint goes on to allege that in order to prevent any reconsideration of the sale of the mineral properties, Mr. Kjosness and Mr. Blake hastily convened a shareholder meeting at which time a new slate of directors, which included Mr. Kjosness, was elected. The acquisition has since been finalized and SEECAN has been struck from the Alberta registry of corporations.
Mr. Sharp commented: "I feel like a fool for having been duped into turning over these mineral rights, whose potential value was misrepresented to me by Kjosness and Blake. I trusted Kjosness and Blake as business associates and incorrectly believed that they were acting in the best interests of SEECAN."
Comment by
bullsight on Dec 06, 2006 6:43pm
no wonder the company was doing a private placement, it needs money
to fight in the court in U.S..