WEST HOLLYWOOD, Calif., Feb. 19, 2014 /PRNewswire/ -- Vincent Chase, Inc., Medbox, Inc. (OTC: MDBX) single largest shareholder, issued a letter to fellow shareholders regarding recent criticisms by a short-selling blogging outfit calling itself "Citron Research."
The letter stated:
"Dear Medbox Shareholders:
We are being attacked by a company called Citron Research, whose principal admits to making his living by short selling companies. Now, I have never made any allusions of having a blemish-free past myself and have been painfully honest in company filings in that regard, but I don't go around casting stones at others. In my opinion, if you are going to take that approach and pick on others, you better have a spotless past yourself.
Here is some background on our opponent:
Citron Research is a one-man show run by Mr. Andrew Left, whose career began with a huge black mark. In 1998, in his first job, Mr. Left was found by the National Futures Association to have: "MADE FALSE AND MISLEADING STATEMENTS TO CHEAT, DEFRAUD OR DECEIVE A CUSTOMER IN VIOLATION OF NFA COMPLIANCE RULES 2-2(a) AND 2-29(a)(1)." Mr. Left was debarred for three years, among other punishments. This finding can be found on the website of the National Futures Association.
After being debarred, Mr. Left was employed as the President & CEO of Detour Media in 1999. But in February 2002, his company sued him for stealing six checks worth about $25,000. In Detour Media's official SEC filing, the company alleged Mr. Left's "fraud and deceit, negligent misrepresentation, breach of fiduciary duty and unlawful monetary conversion."
In 2005, Mr. Left founded stockleman.com, a predecessor to citronresearch.com. On this website, he slammed a company called WHIS, and one of WHIS's principals, Mr. Salim Rana. He fabricated information about Mr. Rana (calling him a thief who steal from the elderly), and Mr. Rana sued Mr. Left for libel. The court issued a judgment, ordering Mr. Left to pay Mr. Rana $2,500,000 for damages. (Rana vs. Harris et al., Case No. BC313956, Default Judgment, Oct. 28, 2005, Cal. Super. Ct., Los Angeles County).
In 2010, Mr. Left again ran into trouble with the law, in an altercation with a businessman. He was arrested in Florida. In addition, the records show that he was charged for "failing to appear."
One has to wonder why an investor would trust the investment advice of someone with a record of fraud, deceit, and unlawful behavior. I'm conflicted on how to proceed as Left has made bold statements and is daring us to sue him. I am confident that the statements he has made are actionable but I have a personal goal of reducing the company's expenses and not wasting company funds on trivial pursuits. However, I don't mind going after him with personal funds and may pursue the same after I seek the advice of counsel on the matter. My colleagues at Medbox all have unblemished records and Mr. Left's comments as to a culture of civil and criminal disobedience by Medbox officers is patently false and unjustified. Similarly, his comments as to the company's ethical practices are untenable and completely unwarranted.
Thanks for all the support through the years. We are lucky to have fantastic shareholders.
P. Vincent Mehdizadeh
Vincent Chase, Inc."
About P. Vincent Mehdizadeh:
Mr. Mehdizadeh founded Prescription Vending Machines, Inc DBA Medicine Dispensing Systems, a subsidiary of Medbox, Inc. He has been responsible for establishing corporate direction and setting the Medbox's strategy. He earned a patent in 2010 for his biometric medicine dispensing machine as well as 4 additional patents pending for other products featured by Medbox.
SOURCE Medbox, Inc.; Vincent Chase, Inc.