3. Baldwin denies the first, second, and third sentences of this paragraph.
Baldwin asserts that the “public statement” referenced in the last sentence of this paragraph speaks for itself and denies any allegations inconsistent therewith; Baldwin admits, however, that JBI stated in a Form 8-K filed on or about May 19, 2010, that JBI’s previously filed financial statements for the year ended December 31, 2009 “should no longer be relied upon due to questions regarding,” among other things, the valuation of certain media credits.
Ronald Baldwin, Jr.'s ANSWER to 1 Complaint
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SEC COMPLAINT
First sentence:
3. The almost 1,000 % overvaluation of the media credits substantially misrepresented the actual value of JBI’s assets and, hence, of the company itself.
Second sentence:
The Defendants then used the overvalued financial statements in two private capital raising efforts (Private Investment in Public Equity or PIPES) geared toward raising the capital necessary to begin commercial operation and production of P2O.
Third sentence:
JBI raised over $8.4 million for the company in these PIPES relying on misrepresentations to investors about the company’s assets and valuation.
Last sentence:
Shortly after obtaining the approximately $8.4 million in financing the company issued a public statement indicating its financial statements could no longer be relied upon due, in part, to the erroneous valuation of certain assets on the balance sheet (i.e., the media credits, among other things).
Doc 1 PDF file SEC COMPLAINT
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