Tuesday July 20, 4:10 pm Eastern Time
Company Press Release
Capitol Silver Mines, Inc. Files Lawsuit
DEERFIELD BEACH, Fla.--(BUSINESS WIRE)--July 20, 1999--Stacie Friedman, Vice President and Secretary of Capitol Silver Mines, Inc. (OTC BB:CSVMD), announced today that the company has filed a lawsuit in the United States District Court for the Central District of California naming Mervyn Phelan, Tom Reichman, Craig A. Brown, Bo Phelan, David Kagel and American Auditors, LLC as defendants.
Ms. Friedman said that the lawsuit asserts claims for securities fraud, common law fraud, conversion and constructive trust, among other claims, on behalf of Capitol Silver Mines, Inc. and Brett Salter, a principal shareholder.
Ms. Friedman noted, ''The lawsuit alleges that it arises 'from a fraudulent scheme carried by defendants both by way of multiple misrepresentations and omissions of material facts, and by manipulation of the market in and for the common stock of Plaintiff Capitol Silver Mines, Inc....'''
Freidman also noted that ''Among other things, the lawsuit alleges that 'Defendants wrongfully caused the transfer agent for Capitol Silver Mines, Inc. to issue approximately 2,795,000 '504 Shares(,)' caused those shares to be certificated without restrictive legend....(and) caused the transfer agent to deliver those '504 Shares' to shells or nominees controlled by defendants, following which Defendants sold and caused the sale of certain of those '504 Shares'...into the public market, causing the price at which the common stock of Capitol Silver Mines, Inc. traded to drop'' from approximately $12 per share to approximately $4 per share and 'generating what Plaintiffs are informed and believe over $1 million of fraudulently obtained proceeds...'''
The lawsuit seeks injunctive and equitable relief, compensatory damages and punitive damages.
This press release contains forward-looking statements, including statements containing the words ''believes,'' ''intends'' and similar words. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, actions or achievements of the company to be materially different from any future results, performance, actions or achievements expressed or implied by such forward-looking statements. Such factors may include the results of the company's continuing investigation of the matters described in this press release, timing issues and actions by administrative and enforcement officials.
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Contact:
Capitol Silver Mines, Inc., Deerfield Beach
Stacie Friedman, Vice President and Secretary
954/418-9625
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More Quotes and News: Capital Silver Mines Inc (OTC BB:CSVMD - news)
Related News Categories: mining/metals
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