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Titan Global Holdings Wins $2.5 Million Judgment Against Clifton Prepaid
Discoveries of Fraud at Company's Oblio Telecom Unit
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DALLAS, TX (September 29, 2008) Titan Global Holdings, Inc. (Pink Sheets:TTGL), a diversified holding company, has announced that Oblio Telecom, a unit of its Communications Division, last week won a $2.5 Million judgment at trial in Dallas, Texas against Clifton Prepaid Communications and its affiliates.
Aref Aref, a principal of Clifton, recently filed for personal bankruptcy excluding him from this trial. Oblio intends to pursue fraud claims against Aref in his bankruptcy case and will seek to have Aref's debts to Oblio made non-dischargeable.
Oblio says it will take aggressive collection action against Clifton and any parties that may have converted or concealed Clifton's assets. Early in its litigation with Clifton, Oblio obtained an order freezing cash in then known Clifton's bank accounts. With the trial judgment, the Company expects these funds will be released and applied to Oblio's senior debt facility.
In February 2008, Oblio announced it commenced fraud litigation against a number of parties, including a former employee of Oblio and several distributors of its most popular prepaid telephone calling cards. The lawsuit alleges that the defendant employee and distributors conspired with each other in violation of the Racketeer Influenced and Corrupt Organizations (R.I.C.O.) Act. Oblio claims that the defendant employee and distributors committed mail and wire fraud and participated in illegal schemes and racketeering activities designed to defraud Oblio out of millions of dollars of prepaid telephone cards.
Simultaneous with the filing of the company's R.I.C.O. Act lawsuit, Oblio Telecom, Inc. filed a separate lawsuit in the Federal District Court for the Northern District of Texas against several prepaid calling card retailers, distributors and their network provider. This lawsuit seeks injunctive, monetary, and other appropriate relief for trademark infringement, false designation of origin, and unfair competition under the Lanham Act and related causes of action under the common law of Texas.
"Through the passage of time and our continued effort, we have gained momentum in our litigation and we expect such efforts to intensify this fall. We will not slow down in our efforts to hold those responsible for the fraud and related losses at Oblio accountable," said Kurt Jensen, President and CEO of Titan's Communication Division.
Source: Titan Global Holdings (www.titanglobalholdings.com)
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