ED Magedson – Founder
Thomas BibiyanLos Angeles, California United States of America
Toledo sued Bibiyan and his corporate alter egos personally, and derivatively, on behalf of Searchguy.com, Inc. (the "Company"), for violations of federal and California securities laws, breach of fiduciary duties, fraud, constructive fraud, and breach of contract. The federal court found that the claims arose out of a fraudulent scheme under which Bibiyan and others issued numerous false press releases and other statements to induce investors, including Toledo, to purchase shares. The court determined that this fraudulent conduct created an artificially inflated stock price, and determined that as part of the scheme Bibiyan would dump shares for which he had paid no adequate consideration.
Furthermore, the court determined that Bibiyan breached his fiduciary duties to the Company through gross mismanagement, issuing millions of shares of Company stock without consideration, self-dealing, directing corporate assets to himself, and trading on non-public information.
From May to July 2004, the court determined that the evidence showed that Bibiyan caused the Company to issue 18,500,000 shares to a number of entities for no consideration, and then allowed such entities to sell those shares in the public market. In addition, in accordance with the unrefuted evidence the court determined that Bibiyan improperly controlled the Company and under Bibiyan's control, the Company never had a bank account, prepared financial statements or tax returns, or held any shareholders or board of directors meetings.
Toledo began purchasing Company stock in August 2004 and eventually owned 2,336,862 shares. After Toledo became aware of Bibiyan's improprieties he tried to get Bibiyan to deliver all corporate documents of the Company and return all shares of the Company in order end Bibiyan's involvement with the Company with the hopes that the Company could be properly operated by a legitimately elected board of directors. Bibiyan did not turn over the corporate documents, shareholder lists, or return his Company shares. Instead, Bibiyan actually issued himself an additional 1,800,000 shares of unrestricted Company stock.
On August 8, 2010, the Court issued a judgment against Bibiyan and his alter ego companies. The court awarded the Company $11,892,000.00 in damages for the securities frauds, an additional $100,000.00 in breach of contract damages, with ten percent pre-judgment interest on the contract damages, and $16,646.29 in attorney fees solely for the contract damages claims. Furthermore, the Court awarded Toledo and his co-plaintiff damages in the amount of $219,578.00 for their stock losses caused by Bibiyan's adjudged securities frauds.
Upon receiving news of the Court's judgment, Toledo issued the following
"I am extremely pleased with this judgment. I feel vindicated that a court has entered judgment against Thomas Bibiyan for egregious breaches of his fiduciary responsibility to both Searchguy.com, Inc., and its shareholders. I believe it was necessary to bring this action against Thomas Bibiyan, so that he would not be in a position to defraud other investors in the future. I believe that Searchguy.com can still become a great company under the right management, and as a shareholder of the Company, I hope to see it succeed in the future."
About Ramon Toledo
Ramon Toledo is the President and CEO of Busca Corp., an entity unrelated to, and unaffiliated with, Searchguy.com, Inc., and is also a co-owner of INMUEBLES Y DESARROLLOS ARNAIZ SA de CV, a real estate development company established in 1970 (family owned). With 20 years of experience in international management and business development, Toledo has numerous recognitions as one of the most respectable businessman and entrepreneurs to bring business into Mexico. In October 2008, Levelup.com a branch of Busca Corp., was named Best Web 2.0 Site in Mexico for 2008 AMIPCI (Mexican Internet Association).
Busca Corp. is a leading Mexican company in technology innovation and videogame content. It has signed deals with top online companies: MSN, Yahoo, Terra Networks, Playboy Mexico and Televisa.
SOURCE Ramon Toledo
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This report was posted on Ripoff Report on 09/17/2010 10:23 AM and is a permanent record located here: http://www.ripoffreport.com/reports/thomas-bibiyan/los-angeles-california-/thomas-bibiyan-246-entertainment-the-federal-court-found-that-the-claims-arose-out-of-a-f-641526. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.
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