Turan Petroleum, Inc. Files Multi-Million Dollar Lawsuit Against Former Management and Others
Suit variously alleges fraud, conspiracy, embezzlement, breach of fiduciary duty and other unlawful activities.
Orange County, CA (PRWEB) October 29, 2008 -- Turan Petroleum, Inc. (“Turan”) has filed a civil complaint in federal court against Turan’s former management and certain persons and entities affiliated with them alleging that they engaged in a fraudulent scheme to obtain millions of shares of Turan stock for free. As further alleged in the complaint, Turan’s former management and their co-conspirators received millions of dollars from subsequent illicit sales of many of their “free” shares while Turan was struggling financially and in dire need of capital. The complaint further alleges that the scheme was perpetrated by, among others, Defendants Yuri Vanetik, Anatoly ("Tony") Vanetik and Hiep T. Trinh, who controlled Turan until May 2008, when new management was installed.
The defendants’ used manipulative and deceptive stock trading practices in violation of federal securities laws, as further alleged in the complaint. The deceptive activities alleged include, among other things, the following, as alleged in the complaint: (1) “parking” Turan stock in the names of persons or entities who never paid for the shares; (2) selling the “parked” stock to the public for millions of dollars in illegal transactions; (3) forging stock powers of shareholders who were unaware that their shares had been transferred out of their names; and (4) transferring millions of dollars to offshore bank accounts in the names of foreign companies. The defendants, collectively, received up to approximately $15 Million or more in proceeds from their illicit stock sales, as alleged in the complaint.
As further alleged in the complaint, these deceptive activities damaged Turan and its legitimate shareholders because the company was deceived into issuing millions of shares of stock, while receiving nothing of value in return. This, in turn, resulted in substantial dilution (and value) of the stock held by legitimate shareholders. Additionally, the lawsuit alleges that Turan’s former management usurped corporate opportunities from Turan to sell its shares in a private placement.
The lawsuit alleges that Turan’s former Chief Executive Officer and the Chairman of the Board, Tony Vanetik embezzled at least $1.4 Million of Turan’s funds, and using most of those funds for his and Hiep Trinh’s other company, NRG Resources, Inc. (also a defendant in the civil action), and for the personal benefit of Yuri Vanetik.
By reason of these alleged unlawful activities, Turan’s lawsuit variously alleges that 15 defendants engaged in fraud, conspiracy, embezzlement, breach of fiduciary duty, usurpation of corporate opportunity, corporate waste, among other things. Additionally, Turan seeks compensatory damages in excess of $16.4 Million, the cancellation of improperly issued shares, punitive damages, and other appropriate relief from the court.
The complaint filed by Turan today arises from a thorough audit of Turan’s past activities by the company’s current management, which was installed by June 2008.
“The allegations in the complaint involve a very serious case of fraud by sophisticated individuals who exploited the company for their own personal gain. I am confident that the company will get past these unfortunate events and I look forward to a prosperous future for Turan,” said Turan’s current Chief Executive Officer and Chairman of the Board, Askar Karabayev.
Turan Petroleum, Inc. v. Vanetik, et al., US District Court (Central Dist. Cal.), Case No. CV08-07017CBM
Contact: Sylvia M. Scott (310.255-6161) for Freeman, Freeman & Smiley, LLP
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