CARSON CITY, Nev., Aug. 5, 2013 (GLOBE NEWSWIRE) -- A former shareholder of BluForest, Inc. (OTCQB:BLUF), has filed a civil action for Fraud, Negligent Misrepresentation, Deceit, 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 the Company and several of its past and present officers. The Complaint was filed by George Sharp in the San Diego County Division of California Superior Court (Case No. 37-2013-00057730-CU-FR-CTL ) on July 16, 2013.
Within his complaint, Mr. Sharp states that the Defendants, then operating as Greenwood Gold Resources, Inc., and trading under the symbol "GGRI", deliberately deceived him by issuing false and misleading press releases regarding the acquisition of the Summer Mining Property from Candorado Operating Company, Ltd. for the singular purpose of selling privately placed stock. 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 stock at over-inflated prices, thereby defrauding the public, in what is commonly known as a Pump and Dump scheme.
Mr. Sharp commented, "That the Greenwood Gold Resources operation was a scheme intended to defraud is unquestionable. Just days after the end of the promotion, the company announced that it would not complete the acquisition, in spite of having just disseminated several press releases inferring that the exploration and production on the property were ready to commence. Two reverse splits of the common stock, intended to wipe out the holdings of those taken in by that scheme, were then executed."
Mr. Sharp expressed concerns for investors in BluForest, Inc., currently undergoing a heavy promotion. Mr. Sharp fears that investors will experience the same kind of harsh losses that wiped out previous investors during the Greenwood Gold Pump & Dump campaign. Mr. Sharp cautions investors not to invest in stocks promoted through email or internet advertisements, such as those disseminated by "Best Damn Penny Stocks" and "Research Driven Investor", as these are almost exclusively attempts to abscond with investors' funds, by selling worthless or near-worthless stock at heavily over-inflated prices. Stocks promoted by these newsletters, always ends up with share price that evaporate and significant losses by the public.
Commenting about the genuineness of BluForest's claimed assets Mr. Sharp mused, "One has to wonder why a company with purportedly $700 million in assets would need to vend itself into a shell that has the dubious history that this listing has. Reputable companies with such asset value, if genuine, would regularly file for a new listing in order to be free from skeletons."
Mr. Sharp now holds no interest in BluForest, Inc. and has never directly or indirectly been involved in the shorting of any stock.
According to Mr. Sharp, BluForest, Inc. was given significant advance notice of this lawsuit and apparently chose to conceal this material event from investors and their shareholders.
CONTACT: George Sharp email@example.com (310) 498-4455Source:George A. Sharp