1. BALDWIN denies the allegations contained in paragraph 1 of the Complaint.
2. BALDWIN admits that JBI, Inc. (“JBI”) is a technology company focused on data restoration and recovery, and further admits that it is engaged in developing products with the goal of environmental sustainability. BALDWIN denies that such development is merely “purported.” BALDWIN admits that JBI is involved in the research and development of a process designed to convert plastic waste into oil, known as “Plastic2Oil”or “P2O,” but denies that such involvement is merely “purported.”
BALDWIN admits the allegations in the third sentence, but denies the allegations in the fourth sentence of this paragraph.
With respect to sentence five of this paragraph, BALDWIN states that JBI’s financial statements speak for themselves and deny any allegations inconsistent therewith.
Ronald Baldwin, Jr.'s ANSWER to 1 Complaint
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SEC COMPLAINT
SUMMARY
1. Defendants engaged in a scheme to commit securities and accounting fraud by stating materially false and inaccurate financial information on the financial statements of JBI, Inc. for two reporting periods during 2009. Specifically, the Defendants misrepresented and overstated the actual value of JBI’s assets and, hence, of the company itself by almost 1,000%. The Defendants then used the overvalued financial statements in two private capital raising efforts (Private Investment in Public Equity or PIPES) that raised more than $8.4 million from unwitting investors.
First sentence:
2. At all relevant times, JBI purported to be a technology company focused on data restoration and recovery and environmentally engineered product development.
Second sentence:
JBI is purportedly involved in the research and development of a process designed to convert plastic waste into oil, known as “Plastic2Oil” or “P2O”.
Third sentence:
JBI is a publicly-traded company that files periodic reports with the Securities and Exchange Commission that includes its financial statements.
Fourth sentence:
During the third quarter of 2009 and the year end 2009, JBI materially overstated certain assets in an effort to bolster its balance sheet.
Fifth sentence:
Specifically, in its financials JBI listed media credits purchased by the company for $1,000,000 in common stock as having a value of $9,997,134, which made the media credits the single largest asset on JBI’s balance sheet.
Doc 1 PDF file SEC COMPLAINT
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