Shareholder Lawsuit Launched Against Corix Bioscience, Inc.
PHOENIX, AZ / ACCESSWIRE / January 2, 2018 / Shareholder George Sharp, a well-known activist for truth in the microcap market, announced today that he has filed a civil complaint against Corix Bioscience, Inc (OTCQB: CXBS) and its one time sole officer, Sean Zarinegar, for Fraud, Negligent Misrepresentation, Breach of Fiduciary Duty and Unfair Business Practices. The Complaint was filed in Orange County's Central Justice Center of the Superior Court of California (Case No. 30-2017-00955435-CU-BT-CJC) on November 13, 2017 and served upon the defendants on November 17.
Within his complaint, Mr. Sharp states that the Defendants breached their fiduciary duty to the shareholders of Corix Biscience, Inc. ("CORIX"), which was formerly known as American Housing Income Trust, by conducting the second of two reverse splits on June 10, 2015. Mr. Sharp alleges that the reverse splits were designed to wipe out the shareholders, who faithfully took stock in lieu of debt, while benefitting certain company insiders. The first reverse split had been executed 14 months prior to the second. The two reverse splits had the effect of a rollback of one new share for 775,000 old shares.
Mr. Sharp also alleges a fraudulent scheme by the defendants in which CORIX, as American Income Housing Trust, feigned acting as a Real Estate Investment Trust in order to attract new retail shareholders and discourage existing shareholders from divesting themselves of stock. He further alleges that CORIX never had any intention of being a REIT, as evidenced by its current venture into cannabis products, a popular industry for penny stock schemes.
According to the complaint, Mr. Sharp received stock in lieu of a judgment obtained in San Diego Superior Court for several hundreds of thousands of dollars against the company insider, Michael Osborn. Mr. Zarinegar and his partners subsequently gained control of the public company from Mr. Osborn. Since that transaction, Mr. Osborn has been imprisoned following a Grand Jury indictment and trial (USA v. Osborn - Colorado District Court Case No. 1:2015cr00058) for wire fraud regarding unrelated activities and sued by the SEC for securities fraud for yet another scheme (Securities and Exchange Commission v. VIPWallst, Inc. et al. - New York Southern District Court Case No. 1:2017cv01756).
Mr. Sharp stated, "Mr. Zarinegar's past encounters with various securities commissions and his disregard for the shareholders of Corix Bioscience reveal a pattern of behavior that in my opinion is detrimental to the public markets. I look forward to the discovery process and the revelation of those who were unjustly enriched by this scheme."
Mr. Sharp claims that his shares in American Housing Income Trust were worth $4 million before the bad faith reverse split. He is seeking restitution in that amount.
SOURCE: Clipper Corporate Partners, Inc.