SOURCE: Weintraub Law Group PC

January 08, 2016 16:42 ET

Cross-Complaint for Securities Violations Filed Against Beverly Hills Group, Inc.

SAN DIEGO, CA--(Marketwired - January 08, 2016) - On December 30, 2015, shareholders Ahmad Arfaania and N.A. Fam, LLC filed a Cross-Complaint in the Superior Court of the State of California against Beverly Hills Group, Inc. for rescission of the investment of $225,000, interest thereon, punitive damages and attorney's fees. 

The Cross-Complaint alleges:

1) Violations of Sections 5(a) and 4(a)(1) of the Securities Act of 1933 relating to the unregistered offer and sale of securities;

2) Violations of California Corporations Code Section 25501.5 and 25403 for the use of an unlicensed Broker-Dealer, Jeffrey Thomas; and

3) Breach of Contract.

The Cross-Complaint also personally names as cross-defendants, several officers, directors and other control persons, including the in-house counsel of Beverly Hills Group, Inc., Gene O'Brien, in connection with the securities violations.

Such violations occurred in connection with the offer and sale of stock to shareholders Ahmad Arfaania and N.A. Fam, LLC in the past 18 months. Mr. Arfaania stated, "Mr. Thomas, James Poe, Paula Poe and other controlling representatives of Beverly Hills Group, Inc. used high pressure tactics to extract $225,000 of funds, from myself as well as from members of N.A. FAM LLC, without complying with the federal and California securities laws. I gave them the opportunity to settle this matter amicably, but their disregard for the law resulted in the filing of the Cross-Complaint."

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