RE: ZM v SN etc - cut & paste job of the defendant motion for Stay11 Feb 2021 08:33
Pt.3
13. As a result of what the Partner/Finance Prospect’'s representatives were experiencing, the CEO of the Partner/Finance Prospect, and members of his team, as well as the lead representative from the engaged international investment bank, communicated with Mr. Nicandros and advised that Mr. Mamulaishvili was standing in the way of a transaction with FRC, and this would likely kill their interest in FRC. When Mr. Nicandros consulted with Mr. Mamulaishvili in an effort to advance the proposed financing for FRC, Mr. Mamulaishvili insisted that Mr. Nicandros cease communications with the CEO of the Partner/Finance Prospect. This dysfunctional behavior was apparent to the representatives of the Third Party Capital Finance Prospect, and they ultimately backed away from working with FRC. A major opportunity was lost.
14. FRC has subsequently learned that in 2019, Mr. Mamulaishvili was wiring money out of FRC’'s operating account for his personal benefit. For instance, on July 12, 2019, Mr. Mamulaishvili wired $34,000 out of FRC’'s operating account into an account in his name. Again, on July 24, Mr. Mamulaishvili wired $108,000 from FRC’'s operating account for his benefit. FRC is in the process of auditing accounts and tabulating the amount of money
misappropriated by Mr. Mamulaishvili. Mr. Mamulaishvili was not authorized to transfer funds fromFRC’'soperatingaccounttoaccountshecontrolled.
15. Also, in November 2019, Mr. Mamulaishvili first disclosed to FRC that all of FRC’'s thousands of barrels of oil that was supposedly in storage at the time, as well as certain equipment inventory, had allegedly been stolen by FRC’'s management/employees resident in Georgia and sold. Mr. Mamulaishvili informed FRC that he intended to aggressively prosecute the employees involved both civilly and criminally to recover the funds, but he never followed up and has never done so and appears, therefore, to have been complicit in the disappearance of FRC’'s oil and equipment inventories.
16. It has also been discovered that Mr. Mamulaishvili and his son, Nikolas Mamulaisvili, have surreptitiously formed their own companies, branded in FRC’'s name, to engage in business previously operated by the Company. This appears to be an effort to take over FRC’'s business and/or redirect proceeds from the business without authorization to do so. Upon information and belief, to this day these companies continue to produce and sell oil from FRC holdings.
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