9/12/2023 0 Comments Perian salviola brooks run mining![]() He has a litigation underway to seize Zolotas’ Manhattan apartment, which was allegedly owned by a US shell company that was used to launder funds for NewLead, according to court documents. Meanwhile, Turko has now turned his attention to recovering Zolotas’ assets around the world in an effort to recoup his court award. Sharma and Salviola could not be contacted for comment. While these unfounded claims should never have been filed, Magna and Mr Sason will vigorously contest them in court, and are confident they will prevail.” Sason’s lawyer, Michael Ference of law firm Sichenzia Ross Ference, told TradeWinds via email: “The SEC’s claims against Magna and its founder, Josh Sason, are without any factual or legal basis. The new shares that NewLead issued to pay for the assets were allegedly not registered with the SEC. NewLead hit with $22.2m New York judgment The merged entity became NewLead Holdings and took over Aries’ listing on the Nasdaq bourse in 2009. Rather than go bankrupt, Grandunion's business, which was partly owned by Zolotas, had no other options but to try to tap capital markets for liquidity, which it did via a reverse merger with Aries Maritime, as Turko's counsel argued during the case. Capital markets tappedĪn income statement from Grandunion Shipping - another product of the discovery process, filed as an exhibit during the court case - shows the company made a net loss of $64.4m that was a going concern in 2009, just prior to its reverse merger with Aries Maritime. Turko said the recovered documents show Zolotas was using NewLead as a share-printing press to issue stock to cover loss-making assets. Six reverse stock splits conducted between 20 did nothing to hold back the tide of dilution. The company’s rampant share issuance meant a $3m shareholding in March 2013 was worth just 10 cents two years later, according to calculations by Bloomberg. Turko said that, during the course of the litigation, he was in touch with a disabled man who had lost a substantial amount of his life savings by investing in NewLead’s stock. “I feel sorry for the individuals that have done business with Zolotas,” Turko said. He and his legal team used the recovered documents to reconstruct NewLead’s business model and activities and determine the extent of the fraud. New York Supreme Court Photo: WallyG/Creative Commons “If what we managed to reconstruct from third-party sources is any indication, one can only imagine what was in the documents that caused Zolotas to delete evidence,” Turko said. Turko estimated another 125,000 or so documents could have been produced, had Zolotas not deleted emails, which was discovered during the court-ordered forensic analysis of his computer hard drives.īecause of this, the former shipowner was later found to be in contempt of the New York court. The discovery process turned up 400,000 documents, running to around 1.7 million pages, which Turko said he had spent up to 8,000 hours analysing. “These gentlemen filed a counterclaim against me, accusing me of fraud, but they made a very big mistake because they turned what had been a simple litigation into a personal complaint against me as an individual.” I need integrity to ensure that I can do business. "The only thing that you really have is integrity - when you speak to a bank, an oil company or sit on the other side of the table to a client. “I’ve been in the commodities industry for 30 years and, in the commodities industry, integrity is the most important quality," Turko said. He also said there would be more legal action to come. Zolotas faces asset freeze as creditors seek closureĪlthough the litigation took its toll on him, Turko said the discovery process exposed the extent of the fraudulent activity perpetrated by Zolotas and NewLead - a company that was formerly listed on the Nasdaq stock exchange.
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