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VOIP bankruptcy - Grushko & Mittman
Hunter
Posted: Monday, September 26, 2011
Joined: 9/22/2011
Posts: 20


 

Link to Second Amended Complaint to avoid and recover preferential and fraudulent transfers; Case 09-02471-RBR; Doc 158; Filed 10/04/10 

61 pages (PDF file) so be patient with download 

   

http://www.alabamaagainstfraud.com/Hunter/OTCBB/VOIPAmendCompl.pdf 

   

Second Amended Complaint has Barbara Mittman as collateral agent and/or escrow agent for following: 

Bristol Investment Fund, Ltd. (“Bristol Investment”), Ellis International, Ltd. (“Ellis”), Alpha Capital Anstalt f/k/a Alpha Capital (“Alpha Capital”), Whalehaven Capital Fund, Ltd. (“Whalehaven Capital”), Platinum Long Term Growth II, Inc. (“Platinum Growth II”), Stonestreet Limited Partnership (“Stonestreet”), Chestnut Ridge Partners, L.P. (“Chestnut Ridge”), Brio Capital L.P. (“Brio Capital”), Centurion Microcap, L.P. (“Centurion Microcap”), Double U Master Fund L.P. (“Double U”), Osher Capital, Inc. (“Osher Capital”), CMS Capital (“CMS”), DKR Soundshore Oasis Holding Fund, Ltd. (“DKR”), Platinum Long Term Growth I, Inc. (“Platinum Growth I”) 

   

Segments from Second Amended Complaint 

   

44. The Collusive Investor Group, acting in concert with each other, and under the direction and control of Mittman as collateral agent, along with G&M, which served as “Escrow Agent” with respect to various transactions consummated between the Debtor and the Collusive Investor Group, knowingly and wrongfully engaged in a scheme to systematically exercise, exert and obtain control over the financial affairs, business operations and management of the Debtor such that the rights, duties and interests that existed between the Collusive Investor Group, and its members, was truly in the nature of an “equity” stake holder and/or holders, in the Debtor, rather than as creditors holding claims for unpaid debts against the Debtor. 

   

45. The relationship between Debtor and the Collusive Investor Group was designed and implemented as a parasitic relationship to drain the financial life out of the Debtor for the direct personal gain of the Collusive Investor Group, in preference to the Debtor’s bona fide creditors and shareholders. Furthermore, the Collusive Investor Group, Mittman and G&M colluded and conspired with each other, to obtain, divert and otherwise misappropriate the funds, property and accounts of the Debtor for their own use and benefit without accounting to investors, creditors and shareholders not part of the Defendant group, but otherwise entitled to receive distributions from the Debtor. 

   

50. The control over Debtor was so pervasive that, in fact, the Collusive Investor Group made decisions about which creditors to pay, which lawsuits to defend, and on which lawsuits to default. 

   

51. Notably, the effect of these decisions was to pay the judgments and debts of the related Collusive Investor Group and deny payment to bona fide creditors. 

   

63. In addition to the foregoing, and as further support that the Collusive Investor Group was in control of the Debtor, is the fact that the Collusive Investor Group, in conjunction with Escrow Agent, hand-picked and used Debtor’s Chief Executive Officer, Cataldo and Chief Technology Officer, Lewis , as instrumentalities for their personal gain. 

   

64. Cataldo has managed or sat on the board of directors of several other public companies which have been involved in financing arrangements with several of the members of the Collusive Investor Group. 

   

65. The Collusive Investor Group’s selection of Lewis is additionally notable in light of Lewis’ criminal and financial past which appears to have been undisclosed to the investing public in direct violation of Item 401(f) of Regulation S-K of the Securities Exchange Act of 1934. 

   

67. Robert Staats (“Staats”), the Chief Controller and Chief Accounting Officer of the Debtor pre-petition, provided deposition testimony (the “Staats Depo”) in the State Court Action that in 2007, Cataldo expensed “over $300,000 worth of travel expense advances, of which less than half was represented by documented invoices or documented receipts,” while Lewis’ expense reports indicated that he sought reimbursement for $200,000, of which at least $100,000 was charged to “his American Express account that was also tied to a corporate account, never did receive any expense reports for that.” 

   

68. Cataldo and Lewis charged over $100,000 on a single trip to Las Vegas, under the guise of wooing and essentially bribing Vonage senior executives. However, based upon the few receipts that were presented, it was clear that the $100,000 was spent on excessive amounts of booze, strippers and “chicken ranches,” more commonly known as houses of prostitution. 

   

Inflated press releases are mentioned in statement 73. 

   

 


Hunter
Posted: Monday, July 30, 2012
Joined: 9/22/2011
Posts: 20


Link to Amended Option and Order 

http://www.alabamaagainstfraud.com/Hunter/OTCBB/VOIPRulingCaseClosed.pdf 

 

VoIP, Inc., Debtor. 

Barbara Mittman, et al., 

Appellants, 

v. 

Sonya Salkin, Chapter 7 Trustee, 

Appellee 

UNITED STATES DISTRICT COURT 

SOUTHERN DISTRICT OF FLORIDA 

CASE NO. 11-62197-CIV-MARRA 

From IV. Conclusion 

For the aforementioned reasons, the Order Granting Trustee’s Motion to Compromise 

Controversy and the accompanying Opinion of Bankruptcy Judge Raymond B. Ray, entered on 

August 9, 2011, is AFFIRMED. This case is CLOSED. All pending motions are DENIED AS 

MOOT. 

DONE AND ORDERED in Chambers at West Palm Beach, Palm Beach County, 

Florida, this 28th day of June, 2012. 

 

 

 


 

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