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In Pacer, case cv-01463 document 14-1 filed 11/25/13, contains a transcript of of one of many of Ms Elsley's depositions. In the first 50 paragraphs, Ms Elsley reluctantly admits, after first denying, that the largest private placement investor in Algae Dynamics is a mental-health therapy client of Ms Elsley's and that Ms Elsley borrowed significant money from her. Ms Elsley refused to disclose the amount she borrowed; however, she did indicate that she had not repaid the loan. This raises a serious concern of "nominee shareholders" whereby Directors and Officers of Algae Dynamics would benefit directly from an S1 investor selling into the market if the company became public. These monies could be disguised as loans to the insiders as they are in most OTCBB scams.

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