Notable litigation for October includes: (1) Kansas Securities Commissioner v. Premier Global Corporation, et al.; (2) Dettmering, et al. v. VBit Technologies Corp., et al.
Office of the Kansas Securities Commissioner v. Premier Global Corporation, et al., No. 2022-CV-002052 (Kan. 18th Dist. Ct.)
The Kansas Securities Commissioner (the “KSC”) sued Premier Global Corporation and a number of subsidiaries referred to as “factoring entities” (collectively, “Premier”) for their role in factoring invoices and accounts receivables primarily in the construction industry. The KSC alleges that Premier must have been operating in a Ponzi fashion because Premier generated only 11% of the funds it paid out from factoring activity, allowing the KSC to enforce state securities laws against Premier. The KSC further alleges that Premier commingled investments in various accounts at different banks and misappropriated funds for personal use.
Dettmering, et al. v. VBit Technologies Corp., et al., No. 1:22-cv-01482 (D. Del.)
Plaintiff Ponzi victims sued on behalf of a class VBit Technologies Corp., related companies, and their owners for allegedly defrauding investors through the lease and sale of equipment to mine cryptocurrency. Plaintiffs allege that the Defendants acted in an association-in-fact RICO enterprise by conspiring to lease and sell “mining packages” that would effectively mine for Bitcoin. Plaintiffs allege that instead of paying investors the proceeds of successfully mined Bitcoin, Defendants perpetrated a Ponzi scheme by paying out the funds received by new investments in mining packages. In addition to tort and contract claims, Plaintiffs lodge causes of action under several federal and state statutes relating to fraudulent business practices and securities violations.