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Press Release
November 4, 2004
Second suit filed in Gateway financial Services Ltd fraud saga
There has been a further development in regards to the US$25 million law suit brought against online gaming processor Gateway Financial Services Ltd, TGG Investments Inc, John Carbone and others.
Minority shareholders in Turks & Caicos registered TGG Investments Inc, today filed suit against the management of TGG alleging mismanagement, breach of fiduciary duties and erosion of shareholder value. TGG Investments Inc is currently managed by John Carbone, Daniel Kershaw and others following an alleged unlawful takeover of online gaming company BingoWorkz Ltd in August 2002.
TGG minority shareholders seek an immediate injunction to prevent asset stripping of the company, a court order instructing the current management of TGG to hand over all company financials to minority shareholders, and unspecified compensation for damages and loss of earnings.
This law suit follows hard on the heels of a $25 million law suit filed by Derek Morran and Adi Tarkay, formerly of BingoWorkz Ltd, in the Ontario Superior Court of Justice against Gateway Financial Services Ltd, Gamewave Solutions Inc, Berkshire Trust Company Ltd, TGG Investments, John Carbone, Daniel Kershaw and Gordon Williamson on October 1, 2004. The defendants face charges of fraud, conspiracy, breach of fiduciary duties and breach of contract.
At the core of the case is a merger in August of 2002 between I-gaming operator BingoWorkz and software developer Gamewave Solutions Inc, which is registered in Turks & Caicos and has operations in Toronto, Canada. Together the firms formed TGG Investments Inc.
The plaintiffs allege that they were forced into the merger, claiming that one of the defendants used his influence as a director of both Gamewave Solutions and transaction processor Gateway Financial Services to force the merger by threatening to cease offering Gateway’s payment processing solutions to BingoWorkz.
The filing in Turks & Caicos is the second law suit to be filed in the space of a little over a month. It is expected that more lawsuits against Gateway Financial Services Ltd, John Carbone and others will be filed across further legal and geographical jurisdictions in the coming weeks.
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