SOURCE: Ultimate Franchise Systems, Inc.

April 15, 2010 15:43 ET

Ultimate Franchise Systems, Inc. Fights Corporate Identity Theft

BOCA RATON, FL--(Marketwire - April 15, 2010) -  Ultimate Franchise Systems, Inc. (the 'Company') (PINKSHEETS: ULFS) today announced it has changed its domicile to the state of Florida after corporate hijackers recently attempted to unlawfully obtain control of the Company.

Brenda Hamilton, of the firm Hamilton & Lehrer P.A. (the Company's corporate and securities attorneys), announced today that: "Ultimate Franchise Systems, Inc. has been the victim of an increasing trend of corporate identity theft affecting unsuspecting Pink Sheet and OTC Bulletin Board companies. The scheme involves unregistered shell brokers who engage in corporate hijackings by making a nominal market purchase of a corporation's stock and then using that insignificant securities position to establish standing to file sham shareholder lawsuits in Florida, Nevada, Delaware and/or Colorado. In these lawsuits, the hijackers file pleadings replete with misrepresentations and omissions of material facts to obtain a Court Order that grants the hijackers the authority to hold a meeting on behalf of the Corporation's shareholders; however, instead of having a shareholder meeting to protect shareholder interests, the hijackers undertake actions solely to benefit themselves by issuing millions of shares of stock to themselves or other third parties in reverse merger transactions resulting in dilution or elimination of the legitimate shareholders' interests. The hijackers then misrepresent the authority given by the Order to transfer agents, relevant Secretary of State, the Pink Sheets, OTC Bulletin board, unsuspecting investors and private companies seeking to go public. The hijackings are often accompanied by false press releases touting mergers or acquisitions causing unsuspecting buyers to purchase the stock."

Ms. Hamilton also stated: "Our research reveals that the securities of as many as 100 other companies may have been affected by schemes such as that perpetrated on the Company through corporate hijacking or corporate identity theft over the past few years."

Tim Murray, the Company's Chief Executive Officer stated: "We have concluded that the worst is behind us and that we can only progress from here. The culprits disseminated multiple false press releases about the Company including that the Company had held a shareholder meeting in Canada and entered into merger discussions. Any member of the public should avoid buying or selling any shares of our common stock based upon any the unauthorized public information which was released in the past ninety days. This Company's management has never authorized or been involved in any way in any investor relations activity conducted by the hijackers. Without expertise and diligence of our corporate and securities attorney we would have lost control of our company."

Forward Looking Statements
Some of the statements in this press release are forward-looking statements and are based on current expectations, assumptions and estimates. Words and phrases such as "believe," "intend," "expect," "expansion," "anticipate," "initiating," "commencing," "project," "add value," "bringing into production," "maximizing," "take advantage of," "striving to" or similar expressions, are intended to identify "forward-looking statements." Forward-looking statements carry certain risks regarding an assumed set of economic conditions and courses of action There is a significant risk that actual material results will vary from projected results. No information provided in this press release should be construed as a representation, or indication in any manner, of the present or future value of the Company or its common stock. The Company disclaims any responsibility to update forward-looking statements made herein.

Contact Information

  • Contact:
    Jess Levi