One of U.S. Precious Metals's largest
shareholders has sued the company's former CEO Gennaro “Jerry”
Pane, joining the company's new CEO in accusing Mr. Pane
of fraud. Below is an excerpt from the recently filed
complaint, and outlines the extent of Pane’s fraud:
During the course of the business
relationship with Defendant PANE, he concealed the following
essential and important information and facts in an effort to
personally profit at Plaintiff’s expense:
a. That Marigold was not a safe
investment nor financially sound business, but the fact is it was a
shell company less than one year old when Plaintiff was first asked
to invest, and had nowhere close to the multimillion dollar capital
funding Defendant claimed it had.
b. That Marigold did not have a
“uniquely knowledgeable and an experienced senior management team
with specific expertise in the mining sector,” but the fact is the
company had no management team at all, and had absolutely no
experience in the mining sector or any other sector of business as
it was a nascent entity.
c. That Defendant PANE did not have
“a vast knowledge of mining operations,” nor did “he fully
understood the details necessary to explore and extract gold from
the property in Mexico,” but the fact is his background was as a
stock broker prior to raising money for the project (and according
to the SEC he lost his Series 7 license to be a broker and cannot
sell stock anymore), and before that he was a pizza shop operator
(see exhibit X).
d. That Defendant PANE did not have
“extensive knowledge, experience nor an understanding of regulatory
authorities, nor navigating the intricacies of government agencies”
concerning the mining property, but the fact is Defendant PANE does
not speak Spanish, has never dealt directly with any of the
regulatory agencies in Mexico in the past and has absolutely no
knowledge of the requirements regarding government mining agencies
and permitting in Mexico.
e. That Plaintiff subsequently
learned from U.S. Precious Metals de Mexico, Authorized Legal
Representative, Carlos Hernandez, Jr., that Marigold was not
registered in Mexico as a company authorized to conduct business in
the country at all, nor was it specially registered in the country
as a designated and approved mining company, which is a mandated
requirement for any company wishing to engage in the mining
industry within the country of Mexico.
f. That Defendant PANE did not have
“a pre-established gold extraction plan for a dried river bed
project that Defendant was in the process of implementing,” but the
fact is Plaintiff spoke with U.S. Precious Metals de Mexico,
Authorized Legal Representative, Carlos Hernandez, Jr., in Mexico
and stated that there was no such gold extraction plan currently
scheduled for any aspect of the Mexican mining property, and that
USPR had not even pulled a permit to begin a gold ore extraction
operation.
g. USPR’s Legal Representative,
Carlos Hernandez, Jr., basically told Plaintiff that there was no
“Gold River Bed Project” nor was there any plan or even capital to
buy mining extraction equipment currently on the company’s agenda,
and that any such statements were emphatically not true.
h. That Defendant PANE does not have
a “state of the art mineral refining and recovery technology in
Reno, Nevada” but the fact is this company similarly incorporated
in Nevada (like Marigold Minerals Holdings LLC) is basically a
fraudulent operation, and currently being investigated by the
Nevada EPA division, District Attorneys Office, and listed on SCAM
ALERT websites like “yscam” and “RipOffReports” as being total
frauds. (See exhibit IV and V)
i. Despite Defendant PANE’s numerous
guarantees to Plaintiff, Defendant fraudulently concealed that his
gold recovery technology company (Modern Mining Solutions, LLC) in
Reno, Nevada did not have a contract with Marigold and U.S.
Precious Metals to process all of the gold concentrate extracted
from the Mexican mining property; the fact is that when Plaintiff
inquired into USPR about this statement from Defendant and the
company’s CEO stated that it did not have any contract with a
Modern Mining Solutions, nor did it ever have any communication
with Modern Mining Solutions, nor it even know the name of this
company or have any records of communication with it, and
especially did not have a gold processing agreement with Modern
Mining Solutions.
j. Defendant PANE fraudulently
concealed the fact that his company never “secured Four Million
Dollars ($4,000,000.00) in new capital to continue exploration of
additional concessions owned by USPR, and to begin extraction of
alluvial gold deposits in a dried river bed.”
k. Despite Defendant PANE showing and
providing to Plaintiff written documents and verbal assurances that
Defendant had “adequate capital financing and that his company was
financially stable and well funded,” Defendant PANE fraudulently
concealed that the company had no money in its bank account, and
that Defendant PANE had personal financial instabilities and was
far from being as financially well off as he stated.
l. Defendant PANE concealed the fact
that he never had a “solid buyer for 20% of his company in exchange
for Twenty Million Dollars ($20,000,000.00);” but the fact is the
company did not even have a Letter of Intent to this assertion or
any preliminary documents to support Defendant’s claim which was
withheld from Plaintiff.
m. Defendant PANE fraudulently
concealed the fact to Plaintiff that Defendant was never offered
$20 Million for 20% buy any person or entity; and concealed the
fact the it was never “entering the final stages of a deal for $40
Million for 20%; and stated he needed to get in now before he
totally misses out.”
n. Defendant PANE fraudulently
concealed that he was not able to issue or sell a single share of
Marigold Mineral Holdings, LLC to Plaintiff.
o. Defendant PANE fraudulently
concealed that he did not own any stock in USPR and had no
involvement with the company’s internal affairs at all.
p. Defendant PANE also failed to
disclose that USPR’s current CEO, PAUL MUNCY, had a very low
opinion of Defendant PANE and said he only spoke to 3 or 4 times
while CEO. He also mentioned one time Defendant PANE threatened to
have him removed from office if he didn’t listen to Defendant. Mr.
Muncy he could not take a word he said seriously and could think of
nothing nice to say about Jerry Pane.
Defendant PANE failed to advise
Plaintiff of these key material facts, and it was only upon
Plaintiff’s request for his money back, Defendant’s inability to
provide any use of his funds, and Plaintiff’s independent
investigation that he discovered these fraudulent concealments.
Source: U.S. Precious Metals, Inc.
Contact: pr@uspr-holdings.com