I 'believe' his Intentions have been good....

Quote:

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I 'believe' his Intentions have been good....

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Really? Even after his lies about already producing oil for $10/bbl and selling it for +90% profits five years ago?

Even after Bordynuik admitted in court documents to dumping 850,000 shares around a $1.40, during a time that investors were being encouraged to buy-and-hold?

Even though Bordynuik earned a salary of $258,305.00 in 2013, and a salary + bonus of $339,402.00 in 2012, plus around $1.2 MILLION dollars for dumping his shares. Yet, he doesn't see it fit to loan the company $200K to fix the processors ?

Even after Bordynuik *admitted* to lying to investors and engaging in a series of crimes contrary to their interests over a four year period?


PART III – AGREED FACTS

A. OVERVIEW

5. During the years 2008 to 2011 (the “Distribution Period”) Bordynuik raised money for JBI and/or its predecessor entities.

6. In doing so he caused JBI to raise a total of approximately $11.2 million U.S. from 433 Ontario investors through activities which breached Section 53 of the Act and which were not in compliance with Ontario securities law.

7. During part of the Distribution Period, Bordynuik caused to be prepared and signed financial statements of JBI in which JBI’s financial position was misstated by approximately $10 million as a result of attributing an excessive value to one of the company’s assets, namely certain media credits. This misstatement was first made in JBI’s third quarter financial statements for the quarter ended September 30, 2009 and contained in its Form 10-Q. It was repeated in JBI’s 2009 year-end financial statements contained in its Form 10-K for the year ended December 31, 2009. Both documents were filed with the Securities Exchange Commission (“SEC”) and are collectively referred to as “the Financial Statements”.

8. JBI reported in the Financial Statements that it owned media credits having a valuation of $9,997,134. This valuation was erroneous, and was not in compliance with Generally Accepted Accounting Principles or “GAAP”.

9. Bordynuik certified that, based on his knowledge, the Financial Statements fairly presented in all material respects the financial condition of the registrant, JBI. In fact the Financial Statements did not do so.

10. Monies were raised from Ontario investors during the time that the Financial Statements contained the erroneously high valuation for the media credits.

11. The media credits were eventually written off in their entirety in JBI’s amended form 10-K filed on July 9, 2010. The proper valuation of the media credits under GAAP was nil.

12. While Bordynuik was raising funds on behalf of JBI, he established a trust for the benefit of his two minor children (the “Childrens’ Trust”), which was subject to a formal trust agreement.

13. Bordynuik caused shares of JBI or John Bordynuik Inc. to be irrevocably settled on his mother as trustee of the Childrens’ Trust. The Childrens’ Trust held those shares in a securities account at RBC Dominion Securities (“DS”).

14. Having irrevocably settled JBI shares in trust Bordynuik then directed his mother as trustee to transfer the shares out of the trust account at DS to a number of transferees whom he designated, contrary to the terms of the formal agreement governing the Childrens’ Trust.

15. Bordynuik adopted this practice, which violated the terms of the Childrens’ Trust, so as to put free trading and not restricted stock, in the hands of third parties.

16. Bordynuik used the Childrens’ Trust in part as a reservoir of JBI shares which could be distributed to others, including Bespoke Growth Partners, in aid of acquiring a listing on the AMEX or NASDAQ exchanges. Bordynuik’s misuse of the Childrens’ Trust for this purpose was conduct contrary to the public interest.

http://www.osc.gov.on.ca/documents/en/Proceed...nuikjw.pdf



Are you really going to ignore the pile of evidence the SEC made public in their fraud suit against Bordynuik just because some sleazy message board shills with a decade-long history of lying for various scams said it wasn't important?



SEC CHARGES COMPANY AND ITS OFFICERS WITH ACCOUNTING FRAUD

The Securities and Exchange Commission announced today that it filed an action in federal court in Massachusetts against JBI, Inc., a publicly-traded company formerly located in Massachusetts and now headquartered in Ontario, Canada. The Commission also charged JBI’s current CEO, John Bordynuik, a resident of Ontario, Canada, and its former CFO, Ronald Baldwin, Jr, a resident of Palm Harbor, Florida. The action alleges that the defendants engaged in a scheme to commit securities and accounting fraud by reporting materially false and inaccurate financial information on the financial statements of JBI, Inc. for two reporting periods during 2009.

According to the Commission’s complaint, JBI is purportedly a technology company focused on data restoration and recovery and environmentally engineered product development. The company is headquartered in Canada, but purportedly has operations in New York, Florida, Ohio, and Pennsylvania. The complaint alleges that JBI is purportedly also involved in the research and development of a process designed to convert plastic waste into oil, known as “Plastic2Oil” or “P2O”. The Commission alleges that during the third quarter of 2009 and the year end 2009, JBI materially overstated certain assets in an effort to bolster its balance sheet and success in two private capital raising efforts (Private Investment in Public Equity or PIPES) geared toward raising the capital necessary to begin commercial operation and production of P2O. The Complaint alleges that JBI raised over $8.4 million for the company in these PIPES just before the company issued a public statement indicating its financial statements could no longer be relied upon, in part, due to the erroneous valuation of certain assets, known as media credits, on the balance sheet.

The Commission alleges that in contravention of Generally Accepted Accounting Principles (“GAAP”), the company erroneously booked the media credits at a value of $9.997 million, thereby becoming the single largest asset on the company’s balance sheet, when they should have been initially booked at a value of $1,000,000 when acquired in August 2009, and subsequently, the media credits should have been remeasured at their current value and written down to zero as of the end of the company’s third fiscal quarter on September 30, 2009. According to the complaint, Bordynuik was aware of, or was reckless in not being aware of, GAAP concerns surrounding the reported value of the media credits in advance of the company’s third quarter 2009 Form 10-Q filing with the Commission on November 16, 2009 and the year end 2009 Form 10-K filing with the Commission on March 31, 2010 yet falsely certified that the company’s financial statements for those reporting periods were filed in conformity with GAAP. The Commission complaint further alleges that Baldwin was aware of, or was reckless in not being aware of, GAAP concerns surrounding the reported value of the media credits in advance of the company’s year-end 2009 10-K filing on March 31, 2010, yet falsely certified that the company’s financial statements for that period were filed in conformity with GAAP.

The Commission’s complaint charges JBI, Inc. with violating Section 17(a) of the Securities Act of 1933 (“Securities Act”) and Sections 10(b), 13(a), 13(b)(2)(A), 13(b)(2)( and 13(b)(5) of the Securities Exchange Act of 1934 (“Exchange Act”) and Rules 10b-5, 12b-20, 13a-1, 13a-11 and 13a-13 thereunder. The complaint alleges that Bordynuik violated Sections 17(a) of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5, and Section 13(b)(5) of the Exchange Act. In addition, the Commission’s complaint alleges that Baldwin violated Sections 17(a) of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5, and Section 13(b)(5). Finally, the complaint alleges that Bordynuik and Baldwin violated directly or aided and abetted JBI’s violations of Sections 10(b), 13(a), 13(b)(2)(A) and 13(b)(2)( of the Exchange Act and Rules 10b-5, 12b-20, 13a-1, 13a-11 (Bordynuik only), 13a-14, 13b2-1 and 13b2-2 (Bordynuik only). In its complaint, the Commission seeks permanent injunctions, disgorgement plus prejudgment interest, and civil penalties against all three defendants, and officer and director bars against Bordynuik and Baldwin.

http://www.sec.gov/litigation/litreleases/2012/lr22220.htm