SAN JOSE, COSTA RICA–(NEWSWIRE) – August 9, 2010 – Crisnic Fund SA, a Costa Rican investment company, announced today that it intends to file litigation for fraud against China Armco Metals, Inc. (NYSE: CNAM). The litigation will name Kexuan Yao, the Chief Executive Officer of China Armco.
Crisnic Fund entered into a loan transaction with Yao secured by 1,300,000 shares of common stock of China Armco. The shares were transferred by DWAC transfer into the account of Crisnic Fund and were purportedly freely tradeable and available for sale. In reliance on the transfer, Crisnic Fund wired $1,000,000 to Yao. In truth, Yao had defrauded Crisnic Fund, the Company’s transfer agent, and possibly even the Company as to the nature of the shares. As a direct result of these actions, Crisnic Fund has been damaged not only with respect to the funds wired, but with respect to business activity at the broker, the clearing firm, the transfer agent and with respect to its business reputation in general. The litigation seeks damages in excess of $5,000,000 for these matters.
“The actions have had a very negative impact on our business. We relied on Yao and the opinions of his attorneys to push forward with this transaction. We intend to assure that we are properly compensated for this loss and to assure that this type of action does not recur,” said Anthony Gentile, portfolio manager for Crisnic Fund.
Safe Harbor Statement
Matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words “anticipate,” “believe,” “estimate,” “may,” “intend,” “expect” and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors available from the Company.
Contact:
www.Crisnicfund.com
Tony@crisnicfund.com