Aggressive Action in Response to Recent Discoveries of Fraud at Company's Oblio Telecom Unit
February 15, 2008
DALLAS--(BUSINESS WIRE)--Titan Global Holdings, Inc. ("Titan") (OTCBB: TTGLE - News), a high growth diversified holding company, announced today that Oblio Telecom, ("Oblio") a unit of its Communications Division, commenced fraud litigation against a number of parties, including a former employee of Oblio.
Today Oblio filed a lawsuit in the Federal District Court for the Northern District of Texas against a former employee of Oblio and several distributors of its most popular prepaid telephone calling cards. The lawsuit alleges that the defendant employee and distributors conspired with each other in violation of the Racketeer Influenced and Corrupt Organizations (R.I.C.O.) Act. Oblio claims that the defendant employee and distributors committed mail and wire fraud and participated in illegal schemes and racketeering activities designed to defraud Oblio out of millions of dollars of prepaid telephone cards.
Simultaneous with the filing of the company's R.I.C.O. Act lawsuit, Oblio Telecom, Inc. filed a separate lawsuit in the Federal District Court for the Northern District of Texas against several prepaid calling card retailers, distributors and their network provider.
The lawsuit seeks injunctive, monetary, and other appropriate relief for trademark infringement, false designation of origin, and unfair competition under the Lanham Act and related causes of action under the common law of Texas. The alleged causes of action arise from the Defendants' promotion, advertisement and sale of counterfeit calling cards bearing reproductions, copies and colorable imitations of Oblio's famous Hello Asia trademark and trade dress. Oblio claims that the retailers, distributors and network provider worked in concert to violate Oblio's statutory and common law rights causing Oblio millions of dollars in damages.
Since November, 2007, Titan's market cap has declined from over $110 Million to approximately $25 Million, a decline of over $85 Million. Beginning in December 2007, a series of disparaging postings about Oblio Telecom and its prepaid phone cards were made on various stock based chat rooms. These postings led to adverse advisory reports by firms that have followed Titan. Titan believes these postings contributed to a rapid decline in Titan's public share price. Titan believes these postings were part of a coordinated and concerted plan to undermine Titan's ability to defend itself against the fraud losses its Oblio unit suffered. The Defendants' actions substantially damaged Titan and its shareholders. The referenced actions seek treble damages in addition to actual damages.
In connection with these matters, Oblio has assembled an experienced legal team led by the following:
Lead Corporate Litigation Counsel:
C. John Scheef III
2601 Network Blvd., Suite 102
Frisco, Texas 75034
(214) 472-2100 (main)
(214) 472-2150 (fax)
www.solidcounsel.com
Lead Fraud Counsel:
Stephen E. Kravit
Kravit ▪ Hovel & Krawczyk s.c.
825 N. Jefferson, Milwaukee, WI 53202-3737
Tel: 414.271.7100
Fax: 414.271.8135
www.kravitlaw.com
Lead Communications Counsel:
Jonathan S. Marashlian
Helein & Marashlian, LLC
The CommLaw Group
1483 Chain Bridge Road, Suite 301
McLean, Virginia 22101
Office Tel: 703-714-1313
Office Fax: 703-714-1330
www.CommLawGroup.com
Oblio intends to make appropriate criminal referrals for investigation of these matters and the possible issuance of criminal charges.
About Titan Global Holdings
Titan Global Holdings is a diversified holding company with a dynamic portfolio of subsidiaries spanning international telecommunications, electronics and homeland security, consumer products and energy resources and distribution.
Titan's operating divisions include the following:
Titan's Communications Division addresses a range of high-growth markets in the telecommunications, wireless and mobile segments. These units are focused on prepaid telecommunication products.
The Titan Global Energy Division aggregates traditional and next-generation energy and fuel assets that can provide significant opportunities for growth in one of the world's largest and most critical markets.
Titan Global Brands integrates, protects and expands brand management capabilities to leverage and optimize growth across Titan's worldwide distribution channels.
Titan Card Services plans to capitalize on the burgeoning multibillion dollar international prepaid money transfer sector. Titan Card Services proprietary technology provides for convenient and efficient international money transfers.
Titan's Electronics and Homeland Security Division includes Titan PCB East, Inc., Titan PCB West, Inc., and Titan-Nexus, Inc. These companies specialize in the manufacture of advanced circuit boards and other electronic products for classified military and defense department customers, and other high-tech clients.
For more information, please visit: www.titanglobalholdings.com .
Forward-Looking Statements
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 -- With the exception of historical information, the matters discussed in this press release are forward-looking statements that involve a number of risks and uncertainties. The actual future results of TTGL could differ significantly from those statements. Factors that could cause actual results to differ materially include risks and uncertainties such as the inability to finance the company's operations or expansion, inability to hire and retain qualified personnel, changes in the general economic climate, including rising interest rates and unanticipated events such as terrorist activities. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," the negative of such terms, or other comparable terminology. These statements are only predictions. Although we believe that the expectations reflected in the forward-looking statements are reasonable, such statements should not be regarded as a representation by the Company, or any other person, that such forward-looking statements will be achieved. We undertake no duty to update any of the forward-looking statements, whether as a result of new information, future events or otherwise. In light of the foregoing, readers are cautioned not to place undue reliance on such forward-looking statements. For further risk factors see the risk factors associated with our Company, review our SEC filings.
Contact:
Trilogy Capital Partners
Financial Communications:
Ryon Harms, Toll-free: 800-592-6067
info@trilogy-capital.com
