LOS ANGELES, Dec. 8, 2011 (GLOBE NEWSWIRE) -- Private investor, George Sharp, who has filed a civil action (Los Angeles County Division of California Superior Court Case No. BC461550) 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) against Writers' Group Film Corp., Inc. ("Writers' Group") (PINK SHEETS:WRIT), its wholly owned subsidiary Front Row Networks, Inc ("Front Row"), and its current and former officers, announced today that several new Defendants have been added to his lawsuit.
According to Mr. Sharp, the naming of additional Defendants comes after he examined Writers' Group President and CEO, John Diaz, in a deposition in front of a court reporter on Tuesday, November 29, 2011.
Amongst the newly identified Defendants in the litigation are Armada International, Inc, Michael Sullivan, and Amwest Imaging, Inc (OTCBB: AMWI) insider, Phil Keuber and Christa Keuber, believed to be Phil Keuber's wife .
Mr. Sharp commented, "As a result of my research and Mr. Diaz's sworn testimony, I am now convinced that the newly added Defendants conspired to defraud the public by conducting what is commonly known as a Pump and Dump scheme. I believe that they executed a ruse in which Mr. Diaz was to receive financing and support from the Defendants for his projects, which were vended into Writers' Group, and once the Defendants divested themselves of their shares, the financing and support stopped. I believe that the Defendants used Mr. Diaz's reputation and background to their advantage and installed him as a figurehead while dumping their shares onto the public. Certified documents from the company's transfer agent show that on February 11, 2011, Diaz, Keubers, Sullivan and Armada collectively owned 110,000,000 of the 110,130,750 shares of Writers' Group issued and outstanding. On March 7, 2011, the day that the Writers' Group promotional campaign began in earnest, over 100,000,000 shares traded. These shares could only have come from some or all of the insiders. I am currently in the process of subpoenaing the transfer agent's records for the entire year." Mr. Sharp also noted that, in the course of his deposition, Mr. Diaz testified, under oath, that he has not divested himself of any Writers's Group stock and has offered to produce his original certificates as evidence.
Mr. Sharp, expressed concerns for investors of Amwest Imaging, an issue currently undergoing a heavy promotion campaign. According to the website www.pumpsanddumps.com, a website that has wrongly linked to Mr. Sharp, Amwest Imaging is following the same pattern as the Writers' Group scheme. As virtually all of Writers' Group stock was held by four individuals prior to its promotion, pumpsanddumps claims that SEC filings show that Mr. Keuber and his associates held 100% of of Amwest Imaging stock and that company installed a new President immediately before the promotion began, in order to give the appearance that Mr. Keuber has an arms-length relationship with the company.
Mr. Sharp added, "It is more than just a little disconcerting that both companies, as well as other failed public companies involving Mr. Keuber that have also undergone promotion campaigns, all share the same Beverly Hills address, and retain the services of corporate attorney, Ron Stauber."
In order to offer full disclosure, Mr. Sharp revealed that he is a former shareholder of Amwest Imaging, having divested himself of his stock once he realized Mr. Keuber's relationship to the company. Mr. Sharp currently holds no interest in Amwest Imaging stock.
Further and ongoing information about this lawsuit and a copy of the complaint as well as the aforementioned motion and opposition can be obtained at the website: www.sharp-v-writ.info . Get instant alerts about this lawsuit by becoming a follower at www.twitter.com/goniffs .