SOURCE: Pelagatti & Pelagatti

August 12, 2008 15:11 ET

Philadelphia Lawyers, Pelagatti & Pelagatti, Sue GeneLink and Their Subsidiary for Fraud

PHILADELPHIA, PA--(Marketwire - August 12, 2008) - GeneLink, Inc. (OTCBB: GNLK) and its new marketing subsidiary, GeneWize Life Sciences, Inc., have been sued for fraud in Philadelphia Common Pleas Court by GeneLink's former CEO and Board Chairman, John DePhillipo and his wife, Maria for approximately twenty million dollars ($20,000,000).

DePhillipo claims that GeneLink's lawyer fraudulently misrepresented the financial state of GeneLink to him and the trial judge in order to induce the former CEO to settle his law suit for salary arrearages which he had filed against GeneLink in Atlantic County, New Jersey.

On April 14, 2008, at about the same time DePhillipo agreed to settle his lawsuit in court for cash by surrendering almost 4,000,000 of his shares for 6 cents a share, GeneLink intentionally released their late annual report disclosing the formation of its marketing arm, GeneWize, which had sold presidential founder memberships at $1,000.00 each and 4000 prospective dealerships for $500.00 each.

The price of GeneLink shares sky rocketed to as high as fifty cents a share within weeks after the company released its April 14, 2008 annual report.

GeneLink, a public company, allegedly, surreptitiously and contrary to Securities and Exchange Commission rules, operated their defacto marketing subsidiary, GeneWize for approximately 16 months without notifying company shareholders such as DePhillipo, creditors, the public, or the Securities and Exchange Commission.

GeneLink's investment banker, as well as several board members including its chairman, Robert P. Ricciardi, were sued individually for conspiracy to commit fraud.

Contact Information

  • CONTACT INFO:
    Gustine Pelagatti, Sr.
    Pelagatti & Pelagatti
    1845 Walnut St.
    Philadelphia, Pa., 19103
    215-563-6821
    Attorneys for Plaintiffs