Private Investor Files Lawsuit Against Clean Enviro Tech Corp. for Participation in a Pump and Dump Scheme
27 June 2013 - 11:21AM
A private investor and former shareholder of Clean Enviro Tech
Corp. (OTCBB:CETC) (Berlin:A1KB22) (ISIN:US18452C1080)
(SYMBOL:S03A.be and S03A.sg), has filed a civil action for Fraud,
Negligent Misrepresentation, violation of California Corporations
Code Section 25400, and violations of the California Business and
Professions Codes 17200 (Unfair Business Practices) and 17500
(False Advertising) as well as deceit, against the Company and its
sole officer, Mehboob Charania. The Complaint was filed by George
Sharp in the San Diego County Division of California Superior Court
(Case No. 37-2013-00054836-CU-FR-CTL) on June 26, 2013.
In his complaint, Mr. Sharp states that the Defendants
deliberately deceived him by issuing false and misleading press
releases and arranging for third party financing of a promotional
campaign for CETC, for the singular purpose of selling
insider-owned stock into the marketplace. Mr. Sharp alleges
that the Defendants conspired to profit from their holdings by
retaining the services of several stock promoters in order to
create a marketplace for their stock whereby defrauding the public,
in what is commonly known as a Pump and Dump scheme. Within his
complaint, Mr. Sharp notes that he has lost almost all of his
investment as a result of the ill-conceived scheme.
Mr. Sharp expressed concerns for future investors in CETC,
currently undergoing just such a Pump and Dump scheme. Following a
reverse split designed to eliminate long standing shareholders, Mr.
Sharp is informed that the company has resumed its practice of
converting debt to common shares at deep discounts to the current
market price. Mr. Sharp believes that this stock is now being
sold into the market at considerably higher prices, as it is being
heavily promoted, especially in Germany. Mr. Sharp fears that
investors in that stock will see the same kind of harsh losses that
earlier investors saw under previous Pump & Dump campaigns,
when the company was known as Sky Power Solutions Corp. and traded
under the symbol "SPOW". Mr. Sharp also cautions investors not
to invest in penny stocks promoted through email or internet
advertisements, as these are almost always devious attempts to
separate innocent investors from their savings, by selling
worthless or near-worthless stock at heavily over-inflated
prices. Mr. Sharp suggests exercising careful due diligence by
examining company regulatory filings, including financial
statements, found at SEC.gov and OTCmarkets.com. Mr. Sharp
also recommends popular websites, PumpsAndDumps.com and
PromotionStockSecrets.com as sources of due diligence and promoted
stock trading analysis.
Clean Enviro Tech Corp. was given considerable advance notice of
this lawsuit and press release for commentary purposes only and
appears to have chosen not to inform its shareholders of this
material event.
Mr. Sharp currently holds no interest in Clean Enviro Tech Corp.
and has never ever directly or indirectly been involved in the
shorting of any stock.
Updates to this litigation may be viewed by following Mr.
Sharp's tweets at www.twitter.com/goniffs.
CONTACT: George Sharp
george@clippercp.com