jjs64 WHAT IS THIS YOU AND GOLDFINGER.
This is a complaint for securities fraud, defamation, violation of Washington's Consumer Protection Act, violation of Washington's Criminal Profiteering Act, violation of the Federal RICO statute, and intentional interference with a business expectancy. The claims arise out of the defendants' use of the Internet to disseminate false and defamatory information regarding plaintiffs........
IN THE UNITED STATES DISTRICT COURT
FOR THE WESTERN DISTRICT OF WASHINGTON
AT SEATTLE
ZIASUN TECHNOLOGIES, INC., a Nevada corporation, and ANTHONY L. TOBIN,
Plaintiffs,
vs.
Defendant FLOYD D. SCHNEIDER aka ?FLODYIE;?
STEPHEN N. WORTHINGTON aka ?AURIC GOLDFINGER;?
TOM LIVIA aka ?REALMONEY;?
PAUL HARARY aka ?TRADER14U;?
MIKE MORELOCK aka ?CM BURNS;?
DEFENDANT JOHN or JANE DOE 1 aka ?JJS64;?
DEFENDANT JOHN or JANE DOE 2 aka ?GUS SIDERIS;?
DEFENDANT JOHN or JANE DOE 3 aka ?ALPINE SLEUTH.?
Defendants.
No.:
COMPLAINT FOR DAMAGES AND INJUNCTIVE RELIEF AND JURY DEMAND
I. PRELIMINARY STATEMENT
1.1. This is a complaint for securities fraud, defamation, violation of Washington's Consumer Protection Act, violation of Washington's Criminal Profiteering Act, violation of the Federal RICO statute, and intentional interference with a business expectancy. The claims arise out of the defendants' use of the Internet to disseminate false and defamatory information regarding plaintiffs.
II. PARTIES
2.1 Plaintiff ZiaSun Technologies, Inc. is a Nevada corporation with United States headquarters in San Diego, California.
2.2 Plaintiff Anthony L. Tobin is the President of ZiaSun and an individual resident of Hong Kong.
2.3 Defendant Floyd D. Schneider is an individual residing in Saddle River, New Jersey. Defendant Schneider uses the alias ?flodyie? when communicating over the Internet.
2.4. Upon information and/or belief, the actual identity of the Defendant using the alias ?Auric Goldfinger? in his communications over the Internet is Stephen N. Worthington residing in San Francisco, California.
2.5 Upon information and/or belief, the actual identity of the Defendant using the alias ?realmoney? in his communications over the Internet is Tom Livia residing in Boca Raton, Florida.
2.6 Upon information and/or belief, the actual identity of the Defendant using the alias ?trader14u? in his communications over the Internet is Paul Harary residing in Boca Raton, California.
2.7 Upon information and/or belief, the actual identity of the Defendant using the alias ?C M Burns? in his communications over the Internet is Mike Morelock residing in Greenwood, Arkansas.
2.8 Defendant Doe 1 is an individual of unknown residency using the alias ?jjs64? in his communications over the Internet.
2.9 Defendant Doe 2 is an individual of unknown residency using the alias ?GUS SIDERIS? in his communications over the Internet.
2.10 Defendant Doe 3 is an individual of unknown residency using the alias ?Alpine Sleuth? in his communications over the Internet.
III. BACKGROUND
3.1 Plaintiff ZiaSun Technologies, Inc. is an Internet related company providing services to consumers located primarily in Asia. Its business focuses on e-mail services, Internet advertising, investment research, online stock trading, and e-commerce operations management. Plaintiff Anthony L. Tobin is the President of ZiaSun.
3.2 ZiaSun is a publicly traded company traded on the OTC. The ZiaSun trading symbol is "ZSUN."
3.3 Silicon Investor is an online investor website. It is owned by Go2Net, Inc., a Washington corporation, with its principal place of business in Seattle, Washington.
3.4 The Silicon Investor website includes trading information, stock information and provides message boards for its members.
3.5 Members of Silicon Investor can post statements on the Silicon Investor message boards relating to specific stocks. ZiaSun is the subject of at least three Silicon Investor message boards.
3.6 Each member's posting is subject to the Silicon Investor Terms of Use Agreement, which each member must agree to before initiating membership. Under the Silicon Investor Terms of Use Agreement, each member agrees to submit to the personal jurisdiction of the State of Washington for any cause of action arising out of or relating to the service.
3.7 Beginning in the fall of 1998, Silicon Investor members began posting statements about ZiaSun on Silicon Investor message boards.
3.8 In November 1998, a cadre of individuals (?posters?) consisting of the defendants began using Silicon Investor's ZiaSun message boards for a defamatory campaign (?cybersmear?) against ZiaSun and ZiaSun officers and directors, including ZiaSun President, Anthony Tobin. The cybersmear campaign involved the defendants posting false and defamatory information about ZiaSun, ZiaSun officers and directors, and plaintiff Tobin.
3.9 The false information being disseminated by the defendants includes but is not limited to allegations of criminal behavior, involvement in pornography, improper financial interests, improper promotion techniques and dissemination of false corporate and misleading information to the public. The cybersmear campaign continues through the present day.
3.10 As a result of defendants' false statements, ZiaSun share prices have dropped substantially. Damage has directly resulted to the company, its investors and its officers and directors.
3.11 Upon information and/or belief, defendants' cybersmear campaign is intended to negatively impact ZiaSun stock prices to defendants' financial benefit.
3.12 Upon information and/or belief, defendants' are working in concert to drive ZiaSun stock prices down for the defendants' collective benefit.
3.13 Upon information and/or belief, defendants maintain ?short? positions in ZiaSun stock, and have a direct financial interest in driving ZiaSun share prices down. |
