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

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. 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)"

http://www.briefingwire.com/pr/global-gold-corp-otcqb-gbgd-manager-and-director-accused-of-misappropriating-funds-from-investor


About this Blog:  Between 2009 and 2012 I was an active investor in the mineral exploration sector in the Republic of Armenia.  Our main project in Armenia was the MARJAN polymetallic gold and silver project located in near Sissian.  My JV partner, Mr. Van Z. Krikorian, President of Global Gold Corp (otcqb: GBGD) and Trustee of the Armenian Assembly of America, used corrupt means including using his influence with the US EMBASY in YEREVAN to secure an indictment against me for theft of the JV and to corrupt the Armenia judicial system to give him a favourable ruling.

Mr. Van Z. Krikorian is the President, CEO and Legal Counsel of Global Gold Corp. (otcqb:GBGD), a penny stock listed on the OTC  markets. His public filings with the US Scurities and Exchange Commission  fail to fully disclose the reality on the ground in Armenia in the promotion and development of GBGD's gold project, the TOUKHMANUK GOLD MINE.

This blog is an effort to bring transparency of the activities of Global God Corp. (otcqb: GBGD) and Mr. Van Z. Krikorian in Armenia.

Ashot Poghossyan's New Year's Message to the People of Melikgyugh Village in Armenia: "Let Them Eat Coreg"

Upon being alerted that the people of Melik Village were suffering due to widespread bread shortages, Mr. Ashot Poghossyan, Global Gold Corp's  country manager in Armenia is said to have replied, "Let them eat coreg."

Like the disconnected rulers of old France, King Louis XVI and his Queen, Marie-Antoinette, lived in lavish homes and their subjects lived in abject poverty, and declared that if the poor have no bread they should eat brioche;

Global Gold Corp's. (otcqb: GBGD) country Manager and Operator of the TOUKHMANUK GOLD MINE, Mr. Ashot Poghosyan, too lives in a large and beautiful Villa in Gosh, but fails to pay his employees who have no money to afford to buy coreg.

Mr. Ashot Poghosyan, General Manager of GBGD, in Armenia and the Manager of the Toukhmanuk Gold Mine adjacent to Meilk Village

Ashot Poghosyan's Million Dollar Villa in Gosh, Armenia, Complete with Walled Compound and Private Pool

The local Villagers of Melik who worked at the Toukhmanuk Gold Mine, went without their pay, some since 2008,  and now try to live on the broken promises from Global Gold on their farms and try to raise cattle amongst their environmentally polluted fields and pastures of Melik village.

Melik Village Home

Melik Village Home

Melik Village Road

Meliq Village

In 2008 GBGD received advances of $3,500,000 from its "independent" director, Mr. Ian Hague, GBGD's largest shareholder and investor. The money was supposedly used for its operations in 2008 but the local labourers from the Village of Melik and regional contractors were left with unpaid salaries and fees for the worked they performed. 

The Melik labourers earned between $250-$500 a month and the back pay of $286,000 was converted to sham employee loans in 2010. This was announced in the GBGD filings that "As of December 31, 2010, the Company had loans due to employees in Armenia of approximately $286,000. The loans accrue interest at an annual rate of 14%." Now 3 years and almost 5 years waiting to get paid, these loans (back pay) remain unpaid by GBGD, Ashot Poghosyan and GBGD's President, Mr. Van Z. Krikorian.

Also in GBGD's 2010 year end report it announced that "The Company has been brought to court by several disgruntled former employees and contractors for unpaid salaries and invoices, respectively, as well as some penalties for non payment which totals approximately $350,000."  So total unpaid salaries and bills to local labourers and contractors was $636,000.

Meanwhile miraculously Mr. Ashot Poghosyan, GBGD's Country Manager, and Operator of the Toukhmanuk Gold Mine, was able to start building his Million Dollar Villa in GOSH. He managed this on a a $75,000 salary and apparently from money he apparently scammed over the years from his employer and investors of GBGD, through his private consulting firm, ARAX CONSULTING and related family controlled companies. 

I leave you below, with a video filmed at the Melikgyugh Village (Melik), where the local villagers complain about Global Gold Corp. (otcqb: GBGD) and the broken promises made by GBGD's Country Manager and Operator of the Toukhmanuk Gold Mine. 

http://www.briefingwire.com/pr/global-gold-corp-gbgd-leaves-local-armenian-villagers-with-broken-promises

About this Blog:  Between 2009 and 2012 I was an active investor in the mineral exploration sector in the Republic of Armenia.  Our main project in Armenia was the MARJAN polymetallic gold and silver project located in near Sissian.  My JV partner, Mr. Van Z. Krikorian, President of Global Gold Corp (otcqb: GBGD) and Trustee of the Armenian Assembly of America, used corrupt means including using his influence with the US EMBASSY in YEREVAN to secure an indictment against me for theft of the JV and to corrupt the Armenia judicial system to give him a favourable ruling.

Mr. Van Z. Krikorian is the President, CEO and Legal Counsel of Global Gold Corp. (otcqb:GBGD), a penny stock listed on the OTC  markets. His public filings with the US Securities and Exchange Commission  fail to fully disclose the reality on the ground in Armenia in the promotion and development of GBGD's gold project, the TOUKHMANUK GOLD MINE.

This blog is an effort to bring transparency of the activities of Global God Corp. (otcqb: GBGD) and Mr. Van Z. Krikorian in Armenia.