SOURCE: Rubicon Financial Incorporated

Rubicon Financial Incorporated

September 09, 2010 08:30 ET

Rubicon Financial Announces Dismissal of Grant Bettingen Cross-Complaint

IRVINE, CA--(Marketwire - September 9, 2010) -  Rubicon Financial Incorporated (OTCBB: RBCF) is pleased to announce the dismissal of the second amended cross-complaint filed by M. Grant Bettingen and Christi Bettingen, individually and as co-trustees of the 1999 Bettingen Trust U/D/T October 8, 1999 (collectively, the "Bettingens").

The dismissal resulted from Rubicon's filing of a demurrer (a pleading that objected to and challenged the legal basis for the Bettingens' causes of action and complaint), which was sustained without leave to amend at a hearing held on July 29, 2010.

In the Court's ruling, the judge found that:

"The cross-complainants [the Bettingens] have had an adequate opportunity to correct the problems of pleading a viable cross-complaint, however, the subject pleading still fails to state facts sufficient to constitute a cause of action. There are no significant changes in the present version of the cross-complaint as compared to its prior iterations."

The Court's ruling dismissed the Bettingens' second amended cross-complaint and the causes of action resulting therefrom. The final ruling was entered on August 28, 2010.

"Obviously we are overjoyed by the Court's ruling and the dismissal of the Bettingens' complaint. Since the filing of their malicious complaint, we maintained that their complaint and causes of action lacked merit and were not based on reality," stated Joseph Mangiapane, Jr., Rubicon's chief executive officer.

Rubicon is currently seeking to recover in excess of $350,000 of costs and fees associated with the Bettingens' second amended cross-complaint and intends to aggressively pursue the June 2009 lawsuit against M. Grant Bettingen and M. Grant Bettingen, as Trustee of the 1999 Bettingen Trust U/D/T October 8, 1999 seeking damages for (i) breach of contract, (ii) fraud, (iii) declaratory relief, (iv) breach of covenant of good faith and fair dealing, and (v) unjust enrichment.

These claims arise from the June 2008 merger between Rubicon and Grant Bettingen, Inc. (now known as Newport Coast Securities, Inc.).

In addition to attempting to recover the fees and costs from the Bettingens, in June Rubicon received a judgment against Marc Riviello for $141,037.17 resulting from an unpaid promissory note and legal fees, which it is currently seeking to collect on.

Mr. Mangiapane went on to say, "We intend to diligently pursue the Bettingens and Mr. Riviello to recapture nearly $500,000. Our revenues continue to increase even in these turbulent times and we are hopeful that the dismissal of the Bettingen complaint will allow us to continue to focus our resources where they will benefit our shareholders the most; growing the business."

About Rubicon Financial Incorporated:
Rubicon Financial Incorporated is a publicly-traded, financial services holding company that has grown through the acquisition of multiple businesses within the financial services industries. Rubicon has the capability of providing the clients of its various wholly owned subsidiaries with convenience, low pricing and enhanced customer service. Rubicon is located in Orange County, California, in the center of one of the nation's wealthiest regions, as well as one of California's most populated and affluent business communities. Rubicon currently or in the future intends to offer a diverse number of financial services and products, including but not limited to: insurance, both personal and commercial; retail brokerage services; securities market making; investment banking for small to midsized companies; and commodity trading and marketing services. Each respective financial service or product is offered by fully licensed professionals employed through wholly owned subsidiaries of Rubicon.

Readers are urged to review Rubicon's Form 10-Q for the quarter ended June 30, 2010, available on the SEC's website (www.sec.gov), for a discussion of Rubicon's results of operations and review the second quarter of 2010 financial statements.

Forward-Looking Statements:
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact and may be "forward-looking statements."

Such statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Such statements involve risks and uncertainties, including but not limited to: any implied or perceived benefits resulting from the dismissal of the cross-complaint; the Bettingens ability to appeal the Court's ruling on the demurrer and dismissal of the cross-complaint; Rubicon's ability to recover fees and costs related to the Bettingens second amended cross complaint; Rubicon's ability to collect on the Riviello judgment; Rubicon's and its subsidiaries business prospects; the ability of Rubicon to execute its business plan as a diversified financial services company; the successful acquisition of other financial services companies; any other effects resulting from the information disclosed above; risks and effects of legal and administrative proceedings and government regulation; future financial and operational results; competition; general economic conditions; and the ability to manage and continue growth. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated.

Important factors that could cause actual results to differ materially from the forward-looking statements Rubicon makes in this press release include market conditions and those set forth in reports or documents it files from time to time with the SEC. Rubicon undertakes no obligation to revise or update such statements to reflect current events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Contact Information

  • For further information contact:
    Joseph Mangiapane, Jr.
    CEO
    949-333-1528
    Email Contact