SOURCE: Independent Film Development Corporation

Independent Film Development Corporation

February 14, 2013 08:01 ET

Independent Film Development Corporation Sues Junior Capital for Fraud

LOS ANGELES, CA--(Marketwire - Feb 14, 2013) - Independent Film Development Corporation (OTCBB: IFLM) has filed suit against Albert Aimers and his affiliated companies, Junior Capital, Inc. and iBacking Corp., for fraud, and for cancellation of approximately $1 million in toxic debentures. In the action filed in federal court on February 13; Central District Case No. SACV 13-259 DOC (RNBx), IFLM alleges that actions by Aimers and his companies have caused over $1 million in damages to the independent film distributor.

Said Jeff Ritchie, CEO of IFLM, "We have decided to take firm legal action and pull the plug on Aimers' toxic financing before it can further affect the value of our firm. In addition, we are happy to finally clear the air of rumors that any of the principal shareholders have sold stock in an effort to contribute to the decline of IFLM's market capitalization. We are fully committed to repositioning the company and taking advantage of new and exciting market opportunities across various platforms for independent filmmakers."

In the lawsuit filed in U.S. District Court, the Central District of California IFLM alleges that Aimers made and engaged in various false and fraudulent representations to the company in exchange for common stock, including that he would raise working capital and create awareness for IFLM in the financial markets.

Aimers failed to deliver; providing IFLM with only $156,000 over a period of 18 months instead of the promised and legally agreed to $1.8 million.

In August, 2012, IFLM rescinded convertible debenture on the basis of fraud and failure of consideration. In addition, IFLM has demanded from Aimers the he return all stock certificates for cancellation. Counsel stated to Aimers: Should this fail to occur that IFLM would pursue "any and all remedies it has against Mr. Aimers, Junior Capital, and his affiliates for securities fraud under section 10(b) of the Securities and Exchange Act and Rule 10b-5."

"The Company has always followed a course of minimizing dilution of its common stock," said Ritchie. "We are focused on closing the book on this dark chapter in our history, we can finally move toward in the execution of our business model."

Independent Film Development Corporation is a publicly traded, development stage company, focuses on acquiring and developing independent films for production, sale, and distribution.