Fraudulent Takeover Thwarted
LOS ANGELES, California, April 17, 2012 /Newswire – Transnational Automotive Group, Inc. (OTC: TAMG) announced today that its board of directors has prevailed in Nevada District Court against an attempted fraudulent takeover of the company by Joseph Arcaro, who, without notice, attempted to take over and sell the company as a shell corporation.
The board of directors, Henry Huber and Philip Dutoit, have prevailed in a motion to set aside the appointment of Arcaro, who filed a custodianship action against the company in Clark County Nevada, Case No. A-11-641072-P and had a petition granted appointing himself custodian without giving adequate notice to the company. All former actions of Arcaro, including the appointment of himself as sole director, the issuance of shares to himself and his affiliates, and a reverse split the common stock of the company, have all been reversed by the Court. None of these actions were taken with the authority of the company’s active board of directors, consisting of Henry Huber and Dr. Philip Dutoit. Instead of standing down, Arcaro vigorously fought the motion, and brought a petition for writ of mandate against Huber, Dutoit and Eade, in an attempt to force them to turn over records and property of the company, which was also denied.
“This is a victory for victims of the fraudulent takeovers and abuse of NRS 78.347, the Nevada custodianship statute,” said the company's legal counsel, Kenneth Eade. “The statute was enacted by the legislature to enable a shareholder to appoint a custodian, who acts as a trustee for the benefit of the shareholders as a whole, in cases where companies have abandoned their businesses. In the motion, the board claimed that Arcaro, who bought $1 worth of stock to get himself appointed custodian, did it for his own personal gain and not for the benefit of the shareholders. The sale of a shell that trades on the pink sheets can bring a hefty price-up to $150,000 or more,” said Eade.
For further information, contact company counsel, Kenneth Eade, at 323-782-8802 or by email at: email@example.com.
Transnational Automotive Group, Inc.