Thursday, January 9, 2014

Van Krikorian and Global Gold Corp (otcqb: GBGD) Accused of Misappropriating Funds From Investor

Montreal - January 8, 2014 -   It appears that a disgruntled employee of Global Gold Corp. (otcmarkets: GBGD) from Armenia, (which there are many of) decided to expose his former employers and dropped off some files to my attention trade review. In that file was a copy of a "Derivative Action Complaint" which was prepared by Consolidated Resources Armenia (CRA), GBGD's latest victim.

The COMPLAINT outlines that Mr. Van Krikorian, the President, Director and Corporate Counsel  of GBGD, and Mr. Ian Hague, independent director and controlling shareholder of GBGD (and founder of FireBird Management) conspired to defraud its investor, CRA, of $5MM capital investment and $2MM Note and retain the benefit of the capital infusion for GBGD.

Evidence of this complaint supports what I discovered in the past, that GBGD (aka "GGC") was trying to defraud CRA out of their $7MM investment made on the Toukhmanuk and Getik gold properties in Armenia. CRA owns 49% of the Joint Venture known as  Global Gold Consolidated Resources (GGCRL), and GBGD ("GGC") owns 51%.

Mr. Ian Hague and Mr. Van Krikorian abused their powers as directors of GGCRL and GBGD in order to commit the worst kind of fraud – specifically blocking receipt by GGCRL and depriving CRA investors of all of its Armenia mining assets while seeking to extort millions of dollars in cash and equity illicitly from CRA in exchange for allowing the obligatory asset transfer to occur.

This COMPLAINT was prepared on behalf of CRA by DORSEY & WHITNEY LLP, which is one of America's top 100 LAW FIRMS.

A full copy of the complaint is posted below:

Some of the more egregious items outlined in the COMPLAINT accuse Mr. Ian Hague and Mr. Van Krikorian of the following:
"Krikorian and Hague have refused without justification to bring about the transfer of key assets to GGCRL, assets essential for it to conduct its business and deliver shareholder value. Krikorian and Hague have failed to assist in the transfer of these assets, as a means to coerce egregious employment terms for Krikorian and to alter the terms of the joint venture for the benefit of GGC and themselves personally, at the expense of the other joint venture partner, CRA. Krikorian and Hague have perpetuated a series of improper actions undermining GGCRL’s business, including: 
(i) concealment and misrepresentation of substantial GGC liabilities, including tax liabilities that posed material risks to the assets to be transferred to GGCRL;  
(ii) fraudulent transfers of corporate funds to personal bank accounts of GGC officers; 
(iii) misappropriation and misuse of corporate funds, and 
(iv) self-dealing. (2)"
"Rather than take steps as directors of GGCRL to ensure that the Closing took place, Krikorian and Hague have caused GGC to block the Closing and have attempted to extract more value for GGC and themselves, at the expense of CRA and GGCRL. (62)"   
"Krikorian even expressly indicated at a GGCRL board meeting that he and Hague intend to persist in blocking the Closing until they “get what they want”—simply ignoring their duties as directors of GGCRL. (64)" 
"Throughout these delays, Krikorian has repeatedly sought to negotiate an employment agreement with GGCRL for himself, with terms egregiously favorable to him personally. In particular, as a portion of his executive compensation to be paid by GGCRL, Krikorian has demanded that he personally receive a minimum of 5% of the shares of GGCRL in addition to significant salary increases, annual bonuses, and a golden parachute providing for a huge windfall payment of accelerated compensation equating to millions of dollars (66)"  
"and with Hague’s full knowledge and unconditional support, Krikorian has blocked completion of the Closing and both prevented and severely damaged the Public Listing process in part as a ploy to attempt to force GGCRL to agree to Krikorian’s egregious terms of employment. (67)" 
"Throughout the delays, acting in their capacities as directors of both GGC and GGCRL, Krikorian and Hague have attempted to force a wholesale alteration of the material terms of the Joint Venture Agreement, to secure terms more favorable to GGC, at the expense of CRA. (68)" 
"Holding out for egregious and damaging employment terms and a wholly reshaped joint venture deal, Krikorian and Hague also refused to go forward with negotiations on two reverse merger opportunities, which would have brought significant value to GGCRL and its shareholders. (69)"
"Krikorian and Hague systematically delayed the Closing at every step laid out in the Joint Venture Agreement. Krikorian made it an overt strategy to abuse his role and signing authority as interim executive chairman, using the routine signing of GGCRL corporate documents necessary for developing its business as bargaining chips to exact special favors for GGC and Hague and himself.( 72)"
"Krikorian and Hague have stated that, by preventing the Closing of the joint venture, they intend to retain the benefit of the capital infusion GGC received from CRA—which made it possible for GGC to stay in business—(76) "
"As a part of their ongoing effort to avoid tax liabilities to the Armenian government, upon information and belief Krikorian and Hague have supported and encouraged fraudulent transfers of GGCRL funds. In particular, Krikorian and Hague have knowingly transferred corporate funds to personal bank accounts—including without limitation accounts in the name of the Country Manager, Ashot Boghossian—in order to evade Armenian tax authorities. (81)" 
"Krikorian and Hague misappropriated and misused substantial corporate funds, repeatedly using funds advanced by CRA for purposes other than those disclosed. For example, a substantial portion of the $5 million advanced by CRA, as well as the $2 million of addition interim funding, was intended to be used for plant expansion and balance sheet cleanup. Instead, Krikorian and Hague directed GGC to use a substantial portion of those $5 million of funds for other unapproved purposes, and diverted substantial portions of those funds to GGC obligations, to the detriment of GGCRL and its shareholders, all while blocking the intended plant expansion and balance sheet cleanup. In other words, Krikorian and Hague have authorized GGC to use those funds for unapproved purposes instead of forcing GGC to use those funds as otherwise agreed, or have themselves blocked GGCRL from using those funds for high-priority purposes. (85)"

For Additional Information Please Contact

Bill Mavridis
Montreal, Canada

Tuesday, December 24, 2013

Arbitration Still Suspended; GBGD Continues to Owe Caldera US$150,000 and 0.50% NSR on the Marjan Project in Armenia

Montreal, December 24, 2013 - Caldera provides the following Update on the current status of the Arbitration.

As of this Christmas eve, Arbitrator Herman Cahn, continues to keep the Arbitration suspended pending payment of his arbitral fees which are estimated at US$226,720. Caldera has already advised the Arbitrator that it does not have any funds to pay its share of the costs to continue the Arbitration. It is not definitively known if Global Gold Corp., headed by Mr, Van Z. Krikorian, has any funds currently available to pay the arbitration fees either, but for more than 8 months fees are unpaid and the Arbitration hearing remains suspended.

Global Gold Corp. (otcmarkets: GBGD) also owes CALDERA a total of US$150,000 and a 0.05% Net Smelter Royalty (NSR) from all future production from the Marjan Mine. Global Gold claims the Marjan Mine has approved reserves as per its Mining License of:
- 593.2 thousand tons of C1 class minerals and 4114.6 thousand tons of C2 class minerals
- C1 class Au 1776.2 - kg, Ag - 50.1 t, Cu – 0.64 thousand t., Zn – 5.2 thousand t., Pb – 7.7 thousand t.
- C2 class Au - 10221,4 kg, Ag -385.1 t, Cu – 5.6 thousand t., Zn – 41.5 thousand t., Pb –
49.2 thousand t.
During the time that Caldera held the license it discovered that the ming license is in default and that the reserves listed in the Mining License issued on April 22, 2008 do not exist.  There is no official resources issued by the State Committee for Reserves (also know as the "GKZ").

During the arbitration hearings Caldera discovered in fact that Mr. Van Krikorian the CEO, Director, Chairman and Corporate Counsel for GBGD, fraudulently hid material correspondence with the GKZ which refused GBGD's subsidiary its application for reserves at the Marjan Mine on December 2008.

There are currently no official reserves as of this date on the Marjan Mine which means that the license is illegal and can be terminated by the state at anytime. This opinion was also made public by the former Minister of the Environment, Mr, Vardan Ayvazyan, and current Member of Parliament of the National Assembly of the Republic of Armenia (see blog: Fraudulent Misrepresentation).

You can learn more about this by reading the following blog:   ALERT: Fraud and Corruption at the Marjan Mine in Armenia

It is clear that GBGD has engaged in fraudulent misrepresentation by entering into an agreement with Caldera in December 2009 by knowingly withholding material information that proves the license was issued illegally to GBGD. Upon the termination of this Arbitration, Caldera will continue its filings of complaints with the appropriate authorities in Canada and the USA against GBGD and Mr. Van Krikorian.

Calder still maintains its rights to the US$150,000 and the 0.50% NSR as awarded.

For more information please contact

Bill Mavridis
Caldera Resources Inc.

Tel: 514-813-9200

Monday, December 2, 2013