AspenBio Pharma Vice Chairman Refuses Television Coverage for Fraud Trial, According to Kashani Law Office

Jun 25, 2010, 09:00 ET from Kashani Law Office

LOS ANGELES, June 25 /PRNewswire/ -- From Kashani Law Office: -- Defendants Gregory Pusey and Security with Advanced Technology Inc. (SWAT), now known as Pepperball, rebuffed a request by Courtroom View Network to televise their upcoming trial on claims of fraud by five investors in SWAT.  The investors contend they were induced to purchase some $5 million of SWAT stock by misrepresentations by SWAT and Pusey.

Courtroom View Network (CVN) covers important trials, primarily for access to law schools and other educational purposes.  SWAT and Pusey, through their lawyer, James Brosnahan of Morrison Foerster, refused CVN's request to televise the trial.

The investors and their attorney Saied Kashani welcomed the opportunity for television coverage and expressed the hope that Pusey and SWAT would change their position and allow television.  Television coverage is not available unless both sides consent.

The trial was postponed to September 1, 2010 due to the court's schedule and the anticipated length of the trial.  

Pusey is currently Vice Chairman of AspenBio Pharma.  AspenBio and SWAT shared certain officers and directors, including Pusey's longtime associate Jeffrey McGonegal, who is CFO of SWAT and AspenBio.  The Los Angeles lawsuit does not involve AspenBio Pharma or its Appy Score product.

In its IPO prospectus issued July 2005, SWAT claimed to have a proprietary video surveillance system, Shiftwatch, including Shiftwatch LE for law enforcement.  Questioned under oath, McGonegal admitted SWAT had actually stopped selling Shiftwatch LE months before the IPO.  The IPO also claimed SWAT had placed Shiftwatch LE with two small police departments.  The prospectus did not disclose that both police departments had requested a refund prior to the IPO.  A police sergeant testified Shiftwatch did not satisfy "any" of the requirements SWAT represented.

McGonegal also admitted SWAT included rebates on DVD players purchased from Costco and items sold on eBay as "Net Sales" in its IPO financials.  


Saied Kashani, Esq.

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SOURCE Kashani Law Office