Stock Report for Amwest Imaging Inc. (AMWI)
  • Penny Stock on Watch: Amwest Imaging Inc. (AMWI)
  • Stock Alert for Amwest Imaging (AMWI)
  • " />

    Amwest Imaging Inc. (AMWI) Shares Drop as ex-Writers’ Group Investor Names AMWI Insiders New Defendants to Lawsuit

    Amwest Imaging Inc. (AMWI) Shares Drop as ex-Writers’ Group Investor Names AMWI Insiders New Defendants to Lawsuit

    Shares of Amwest Imaging (OTCBB: AMWI) were in the red yesterday as private investor George Sharp named Amwest Imaging insiders, Phil Keuber and Christa Keuber, one of the defendants to his lawsuit against Writers’ Group Film Corp. Inc. (Pink: WRIT).

    Amwest Imaging shares spiked as much as 121% yesterday, only to drop 58.44% to $0.26 at the close.  Over 61.55 million shares traded hands during the session. Shares have gained 17.7% in the last five days.

    Sharp has filed a civil action for fraud, negligent misrepresentation, violation of California Corporations Code Section 25400, and violations of the California Business and Professions Codes 17200 (Unfair Business Practices) and 17500 (False Advertising) against Writers’ Group Film, its Front Row Networks subsidiary, and its current and former officers.

    According to the release, Sharp added several new defendants to his lawsuit after he examined Writers’ Group president and CEO John Diaz in a deposition in front of a court reporter on November 29, 2011.

    Sharp stated:  “As a result of my research and Mr. Diaz’s sworn testimony, I am now convinced that the newly added Defendants conspired to defraud the public by conducting what is commonly known as a Pump and Dump scheme. I believe that they executed a ruse in which Mr. Diaz was to receive financing and support from the Defendants for his projects, which were vended into Writers’ Group, and once the Defendants divested themselves of their shares, the financing and support stopped. I believe that the Defendants used Mr. Diaz’s reputation and background to their advantage and installed him as a figurehead while dumping their shares onto the public. Certified documents from the company’s transfer agent show that on February 11, 2011, Diaz, Keubers, Sullivan and Armada collectively owned 110,000,000 of the 110,130,750 shares of Writers’ Group issued and outstanding. On March 7, 2011, the day that the Writers’ Group promotional campaign began in earnest, over 100,000,000 shares traded. These shares could only have come from some or all of the insiders. I am currently in the process of subpoenaing the transfer agent’s records for the entire year.”

    The report, which cited the Web site www.pumpsanddumps.com, said Amwest Imaging is following the same pattern as the Writers’ Group scheme. Sharp expressed concerns for AMWI investors.

    Amwest Imaging has made press releases in the last six days.

    Leave a Reply

    Your email address will not be published. Required fields are marked *