FACTUAL ALLEGATIONS
14. Baldwin lacks knowledge or information sufficient to form a belief regarding whether John Bordynuik, Inc. was started in 2005. Regarding the second sentence of this paragraph, Baldwin admits that Defendant Bordynuik developed hardware that enabled him to recover archived institutional data stored on old magnetic media, but denies that such development was merely “purported.” Baldwin admits that JBI purchased certain assets of John Bordynuik, Inc. in approximately June 2009, but otherwise denies the allegations in the third sentence of this paragraph. Baldwin states that because the phrase “third party transactions” is vague and ambiguous, he lacks knowledge or information sufficient to form a belief regarding the allegation in the fourth sentence of this paragraph and therefore denies the same, except he admits that Defendant Bordynuik was in charge of John Bordynuik, Inc.’s business operations. Regarding the fifth and sixth sentences of this paragraph, Baldwin lacks knowledge or information sufficient to form a belief regarding the allegations and therefore denies the same. Regarding the last sentence of this paragraph, Baldwin admits that JBI has operated a data recovery business since its acquisition of John Bordynuik, Inc., but states that its data recovery business has not been a priority since 2009, due to JBI’s focus on its Plastic2Oil business. Baldwin further admits that in 2009, it began research and development efforts regarding the development of technology that is capable of converting waste plastic into oil with the use of a catalyst. Baldwin otherwise denies the allegations contained in the last sentence of this paragraph.
15. Baldwin admits that on or about April 24, 2009, Bordynuik acquired a majority interest in and became the CEO of 310 Holdings, Inc. (“310 Holdings”), a development stage company incorporated in Nevada on April 20, 2006 that had SEC reporting obligations. Baldwin further admits that 310 Holdings was a shell company as defined by Rule 12b-2 of the Securities Exchange Act of 1934. Baldwin otherwise denies the allegations contained in the first sentence of paragraph 15. Regarding the second sentence of this paragraph, Baldwin admits that 310 Holdings purchased certain assets of John Bordynuik, Inc. on July 15, 2009, but denies that this transaction was “purportedly an ‘arms length transaction,’” and states that to the contrary, JBI’s Form 10-K for the period ended December 31, 2009 described the acquisition of the assets of John Bordynuik, Inc. as a related party transaction. Baldwin lacks knowledge or information sufficient to form a belief regarding the allegation in the third sentence of this paragraph and therefore denies the same. Baldwin denies the allegations in the fourth sentences of paragraph 15.
16. Baldwin admits the allegations in the first sentence of paragraph 16. Regarding the second sentence, Baldwin admits that Javaco was in the business of selling used cable television equipment, including amplifiers and converters, to Columbia, Venezuela and Mexico, but deny that such business was merely “purported.” Baldwin admits that 310 Holdings reported in its Form 8-K filed on August 28, 2009 that Javaco was acquired to operate and manage 310 Holdings’ planned Plastic2Oil sites in Mexico, but otherwise deny the allegations in the third sentence of this paragraph. Baldwin admits that Domark International, Inc. (“Domark”) assigned the referenced media credits to JBI and that in making such assignment, Domark’s CEO represented that such credits were worth $9,997,134 in print and radio ads, but otherwise deny the allegations in the fourth sentence of this paragraph. Baldwin admits that 310 Holdings issued 1,000,000 shares of common stock on August 24, 2009 as consideration for assignment of the media credits, and further admit that JBI’s amended Form 10-K for the year ended December 31, 2009 disclosed that these shares were valued at $1,000,000. Baldwin otherwise denies the allegations in the last sentence of this paragraph.
17. Baldwin admits that 310 Holdings changed its name to JBI on or about September 2, 2009, that Bordynuik thereafter has served as its CEO, and that he served as CFO until on or about January 1, 2010, but otherwise denies the allegations in the first sentence of this paragraph. Defendants admit the remaining allegations in paragraph 17 of the Complaint.
18. Baldwin states that the Form 10-Q and the Form 10-K referenced in the first sentence of paragraph 18 of the Complaint speak for themselves and denies any allegations inconsistent therewith. The remaining allegations in paragraph 18 are denied.
19. Baldwin admits that JBI purchased media credits from Domark in exchange for 1,000,000 shares of 310 Holdings’ common stock. Baldwin denies the remaining allegations in paragraph 19 of the Complaint.
20. Baldwin admits the allegations in the first, second, third, and last sentences of paragraph 20 of the Complaint. Baldwin lacks knowledge or information sufficient to form a belief regarding the allegation in the fourth, fifth and sixth sentences of this paragraph and therefore denies the same.
21. Baldwin lacks knowledge or information sufficient to form a belief regarding the allegations in this paragraph and therefore denies the same.
22. Baldwin lacks knowledge or information sufficient to form a belief regarding the allegations in this paragraph and therefore denies the same.
23. Baldwin lacks knowledge or information sufficient to form a belief regarding the allegations in the first and second sentences of this paragraph and therefore denies the same. Baldwin admits that the referenced business consultant assisted JBI in the preparation of its September 30, 2009 quarterly financial statements, but otherwise denies the allegations contained in the third sentence of paragraph 23. Baldwin admits that the business consultant was an independent contractor who held the title of Assistant Secretary for JBI, and that the services performed by this individual related to, among other things, the planned development of JBI’s Plastic2Oil process, but otherwise denies the allegations contained in the fourth sentence. Baldwin admits the allegations contained in the last sentence of paragraph 23.
24. Baldwin states that he lacks knowledge or information sufficient to form a belief regarding the allegations in this paragraph and therefore denies the same.
25. Regarding the first sentence of paragraph 25, Baldwin denies that the business consultant either advised Defendant Bordynuik that the media credits were improperly valued or that JBI should hire a new accountant and/or auditor, and therefore denies that Defendant Bordynuik failed to follow such advice. Baldwin admits that the business consultant performed certain accounting services relating to, among other things, JBI’s financial statements for the third quarter of 2009, and the December 31, 2009 fiscal year, and that Gately & Associates was JBI’s independent auditor regarding such statements, but otherwise deny the allegations contained in the second sentence of paragraph 25. Baldwin states that he lacks knowledge or information sufficient to form a belief regarding the balance of this paragraph and therefore denies the same.
26. Baldwin states that he lacks knowledge or information sufficient to form a belief regarding the allegations in this paragraph and therefore denies the same.
27. Baldwin states that because the phrase “additional issues” in the first sentence of paragraph 27 is vague and ambiguous, he lacks knowledge or information sufficient to form a belief regarding the allegations in the first sentence and therefore denies the same. Baldwin states that he lacks knowledge or information sufficient to form a belief regarding the allegations in the second, third, fourth, fifth and sixth sentences of this paragraph and therefore denies the same.
Ronald Baldwin, Jr.'s ANSWER to 1 Complaint
Doc 13 PDF file
viewer.zoho.com
or tinyurl.com |
