Yeah, that was my next question, how this claim relates to the supposed dismissed debts. Either Les is going to try and claim that new agreement is invalid, OR he came up with a new claim based upon this verbal agreement argument and he intends to assert this claim was not covered by the recent agreement.
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So, Mr. Price protected GXK and his own interest in GXK by committing forgery and fraud on the shareholders of a publicly traded company for the past 8 years? Now, a lawsuit against the company he was continually committing forgery against in order to defraud a publicly traded company just to protect a private company he essentially runs in Canada?
The allegations are contained in a
notice of claim filed at the Vancouver courthouse on Oct 18, 2016.
According to the suit, GXK entered into an oral agreement with Medinah
in April, 2007, in which GXK would make payments on behalf of Medinah
and would pay Medinah’s debts.
Stockwatch
Who is aware of the alleged promissory note, and when were they informed of it? If brought into evidence, as it surely must be, are signatures also forged? If this is a legitimate claim (highly doubtful or it would have been made known with signing the AURYN contracts) where does it appear in Medinah’s annual reports and who was responsible for hiding it for 8 years?
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VA couple of thoughts:
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I don’t doubt les did pay expenses and am sure he has the bank statements to prove it. I also am sure that some, if not all, of mdmn’s repayments were in the form of stock via debt conversions at a deep discount.
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I am also confident that Les contacted the reporter to get this story published. This is not something stockwatch would pick up on.
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I sued a company in the same court, the claim started with words like “God save the Queen…” An expensive proposition.
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Would be interesting to do discovery of the books and records of les’ company, which was probably used as funnel for share issuances. Sometimes, DD can be a bitch.
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I would assume les kept the books for mdmn and if these “alledged” loans were not recorded, well his shit out of luck.
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Additionally, weren’t all debts settled in Feb 2012 when GXK Ventures was issued convertible stock to settle their debt for ~$1.14 million dollars?
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Its what I added above to my long response (sorry) regarding the statute of limitations. Neveda requires enforcement of written contracts (ie: promissory notes) within 6 years and oral contracts within 4 years. How could Les have a written contract in 2007, which he is only trying to enforce now? Both would be beyond the statute of limitations. He can’t allege an ongoing series of mini contracts because that argument does not fall under the definition of a contract (offer, acceptance, consideration). He can’t allege the contract complete in 2016 because how could the contract be in negotiation for 9 years? And the parties starting the negotiations were deceased at the completion?
IMO, it’s all BS and smoke screen for Les to try to get some leverage back to try to negotiate a better settlement with MDMN so MDMN doesn’t go after him.
Also, realized I forgot to mention venue as well. Venue applies to the location the plaintiff brings the action. Generally, the plaintiff must bring a breach of contract action in the jurisdiction of the formation of the contract. Since MDMN a Nevada corp and he is alleging oral contact, the contract must have been negotiated through MDMN’s officers, making Nevada the site for any lawsuit to enforce. If an issue arise over the site of the formation, then you use the fall back position of the lawsuit must occur in the jurisdiction of the defendant’s residence. For a Nevada corp, it’s Nevada. MDMN should be able to get this case moved to Nevada and Les needs to fly his Clarence Darrow to Nevada.
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From the 2012 Annual Report (March 2013):
http://www.otcmarkets.com/financialReportViewer?symbol=MDMN&id=101076
NOTE 3—LOANS FROM STOCKHOLDERS
In 2002, the Board of Directors passed a resolution that the stockholder loans would bear an interest rate of 10%, with no specific terms of repayment. The stockholder loans consist of the following: Juan Jose Quijano Fernandez, president, director, and stockholder, as to $73,000; Greg Chapin, director and stockholder, as to $335,963; and GXK Venture, Inc. (Les Price), stockholder, as to $1,142,336. During 2012, by Board resolution, the Company issued some of its newly authorized preferred shares to these stockholders to satisfy these obligations.
From the Cash Flow Statement of the same report:
The Company issued 7,350 of its preferred shares in repayment of shareholder loans: $ 1,551,299
The law suit is not from Les Price but rather his company GXK Ventures. Presumably and in typical LP fashion, his personal forgiveness of debt may not extend to GXK which means that once again he is deceitful (go figure). I hope this is not the case. Additionally, I hope he should have to prove any claimed debt with actual documents. It would not surprise me at all that he used fraudulently attained funds to loan any money (if in fact it is actually true) to do the criminal double dip.
As I recall, all debts including ridiculous interest were paid in 2012 with preferred shares.
While I believe this is just a tactic to muddy the waters and inflict whatever pain he can inflict, it will have to be answered. There is no limit to what this criminal will do.
Hopefully our BOD can dispatch this with ease. I think we should then pursue a civil suit against LP, GXK and any other entities he may own in addtion to filing criminal charges.
Two can play this game!.
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You are correct, I saw that discrepancy. It’s why I pointed out the language int he 10/6 news release. The news release says Les personally, but then also lists the remaining obligations after forgiveness as 373k. When I execute releases for business clients, I always include both the person and the business in the release, just for this reason. MDMN should only need to look at it’s release from Aug. Most release include language RE releasing all agents, assigns, officers, directors, etc. Depending if GXK a solely held corp and how release drafted, it may cover it.
Based upon the other posters who found info RE GKX getting shares in forgiveness of debt, it gets even better and better. Goes back to the very difficult nature of proving an oral contract. It get into a “he said, she said” scenario. Judges hate it. They tend to want to dismiss oral contract cases just to not have to deal with the hassle.
No matter how you slice it, it looks like Les grabbing at straws by filing a frivolous claim.
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A civil suit will cost money…a luxury MDMN does not have right now. MDMN can only get money from mining revenues (still a ways off), selling MDMN shares (not exactly the best price right now), selling an interest in its current assets (NUOCO or Auryn), or some kind of loan or promissory note. We’re not exactly in great position to defense this or any other lawsuits at this time, unless of course someone like Greg Chapin fronts the legal costs as some mentioned was a possibility.
For Les, now is a perfect time to bring suit against MDMN in a final scorched earth act of defiance - as frivolous as his case is. He knows MDMN is hurting for cash and can’t properly defend itself at this time without outside help. Assuming this is just a tactic to gain leverage for an inevitable settlement (IMO), it is more of an eye poke since the evidence against Les has got to be as hefty as it is incontrovertible.
This is akin to Saddam burning the Kuwaiti oil wells during the Iraqi retreat of the Gulf War.
Still here. Going forward, I generally will only be around to check in when there is news released. With Medinah now basically a holding company and Auryn only dispensing news through official websites announcements, there seems to be little reason to follow Medinah on a daily basis anymore. While we wait on the developing revenue stream from the Caren mine, we at least have some frivolous lawsuit(s) from Les to provide some modest entertainment value.
I agree, defending even this frivolous lawsuit will cost something; but, fortunately, IMO it should not cost a lot. Upon even a cursory review and digging by the members here, numerous, very fatal holes have been found with Les’ BS case (statute of limitations, statute of frauds, oral contract proofs, recent release with MDMN, prior forgiveness of debt for shares, and venue). Considering the time and money the current attorney will have to put in on defending the more serious Okandian litigation (written contract) and conducting the forensic audit of shares, they should be able to get this case dismissed or at least transferred to Nevada relatively quickly and cheaply.
It’s absolutely a final FU to MDMN and it’s shareholders he’s screwed over. He got caught. IMO he’s trying to get some leverage back in his favor. He can tell others (those who will actually listen to him) “MDMN screwed me and I’m protecting my rights, they are lying when the accuse me. See I filed a lawsuit against them” He can say I’ll drop my lawsuit for a release of any MDMN claims against me. Now, MDMN stupid if it agreed, but he can make the argument.
IMO, MDMN was going to go after Les eventually anyway after completing the audit and seeing how bad he really screwed everyone. IMO, He’s just accelerated the timetable for MDMN’s lawsuit. Since they were going to file anyway, might as well file it now in Nevada and they get the case from Canada transferred and consolidated into MDMN’s new Nevada case, then MDMN can hammer him, get his BS claim dismissed and continue with their new lawsuit. Why conduct the forensic audit unless you were getting your proof to go after Les (and anyone else involved)? Do it now, make him fight in two places and start burning through attorney’s fees.
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On second thought, Les’ suit is most likely in response to heat he is feeling from Gary. And yes, a simple response to BC court arguing venue, which would be approved, is fairly cheap.
Rick,
I would pay the $50.00 filing fee just to cause that sorry *&(%&%& to have to respond and defend. I know that is vindictive and it is not my nature to engage in such nonsense, however, firing back in any way is tempting. On the other hand, civil matters may well be necessary (if I understand correctly) in order to accomplish any restitution for his egregiously wrongful acts. Clearly there is long reaching financial devastation from LP and all of his actions. (edit)
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This lawsuit by Les is nothing more than a slap in the face to every shareholder who invested in Medinah in good faith. I for one feel enough is enough as to what has happen to our investment.
If Kevin wants to set up and account with the legal firm, or with Medinah, I would be more then happy to donate $100 dollars to the cause to go after Les.
Yes, it may be throwing good money after what was a good investment.
However I don’t like to see someone get away with financial murder that has been committed on Medinah.
As to Medinah, I feel it will pay off nicely down the road, but it will take time.
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Can’t wait to see Baldy’s response to this.
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Baldy is still typing his response.
Chutzpah: The guy who pleads for mercy from the court after being convicted of killing his mother and father because now he’s an orphan.
That’s our boy Les. Pure chutzpah…unbelievable. No, I take that back. Absolutely believable. Why didn’t we see this coming?
I put an order a few days ago for .008 and it sat there until today. Then I watched 7 orders got through at .0075 and .007 before I got filled later in the day. How does that happen? 
Just a fyi, I sent the info on Operation Bermuda Short to Mike Caswell who wrote the story on Les suing us.
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Well dirt drives viewers, but I have heard Caswell is a straight up guy. See what happens