SAN DIEGO, June 26, 2013 (GLOBE NEWSWIRE) -- A private investor and former shareholder of Clean Enviro Tech Corp. (OTCBB:CETC) (Berlin:A1KB22) (ISIN:US18452C1080) (SYMBOL:S03A.be and S03A.sg), has filed a civil action for Fraud, Negligent Misrepresentation, violation of California Corporations Code Section 25400, and violations of the California Business and Professions Codes 17200 (Unfair Business Practices) and 17500 (False Advertising) as well as deceit, against the Company and its sole officer, Mehboob Charania. The Complaint was filed by George Sharp in the San Diego County Division of California Superior Court (Case No. 37-2013-00054836-CU-FR-CTL) on June 26, 2013.
In his complaint, Mr. Sharp states that the Defendants deliberately deceived him by issuing false and misleading press releases and arranging for third party financing of a promotional campaign for CETC, for the singular purpose of selling insider-owned stock into the marketplace. Mr. Sharp alleges that the Defendants conspired to profit from their holdings by retaining the services of several stock promoters in order to create a marketplace for their stock whereby defrauding the public, in what is commonly known as a Pump and Dump scheme. Within his complaint, Mr. Sharp notes that he has lost almost all of his investment as a result of the ill-conceived scheme.
Mr. Sharp expressed concerns for future investors in CETC, currently undergoing just such a Pump and Dump scheme. Following a reverse split designed to eliminate long standing shareholders, Mr. Sharp is informed that the company has resumed its practice of converting debt to common shares at deep discounts to the current market price. Mr. Sharp believes that this stock is now being sold into the market at considerably higher prices, as it is being heavily promoted, especially in Germany. Mr. Sharp fears that investors in that stock will see the same kind of harsh losses that earlier investors saw under previous Pump & Dump campaigns, when the company was known as Sky Power Solutions Corp. and traded under the symbol "SPOW". Mr. Sharp also cautions investors not to invest in penny stocks promoted through email or internet advertisements, as these are almost always devious attempts to separate innocent investors from their savings, by selling worthless or near-worthless stock at heavily over-inflated prices. Mr. Sharp suggests exercising careful due diligence by examining company regulatory filings, including financial statements, found at SEC.gov and OTCmarkets.com. Mr. Sharp also recommends popular websites, PumpsAndDumps.com and PromotionStockSecrets.com as sources of due diligence and promoted stock trading analysis.
Clean Enviro Tech Corp. was given considerable advance notice of this lawsuit and press release for commentary purposes only and appears to have chosen not to inform its shareholders of this material event.
Mr. Sharp currently holds no interest in Clean Enviro Tech Corp. and has never ever directly or indirectly been involved in the shorting of any stock.
Updates to this litigation may be viewed by following Mr. Sharp's tweets at www.twitter.com/goniffs.