MIAMI, Nov. 27 /PRNewswire/ -- China West II today announced it has filed an additional law suit in Miami Dade County, Florida state court against Genesis Pharmaceuticals (OTC Bulletin Board: GNPH), (Genesis) f/n/a Genesis Technology Group, Inc. (GTEC) and Genesis Equity Partners II (GEP II) for GEP II's failure to pay a $190,000 promissory note that became due in August 2008 and for Genesis failure to pay its guarantee of 75% of the amount due under the note.
GEP II borrowed $190,000 from China West II to complete the China Wind Systems (OTC Bulletin Board: CWSI) reverse merger and Genesis guaranteed payment of 75% of all sums due under the note. GEP failed to pay the $190,000 promissory note when it was due and Genesis failed to pay its guarantee. Genesis also failed to dividend the CWSI stock to all of the GEP II partners as outlined in the GEP II operating agreement. China West II has also filed a separate $6.7 million arbitration against Genesis with the American Arbitration Association for Genesis' failure to distribute to China West II its share of the CWSI stock.
Genesis Equity Partners II (GEP II) was formed in 2007 to complete the private to public reverse merger program for China Wind ("Green Power"). GTEC owned 51%, China West owned 24.5% and Joshua Tan, a director of Genesis, owned 24.5% of GEP II. Green Power completed the private to public process in November 2007.
Neither Genesis shareholders nor China West II received their rightful share benefit. Greenview Capital, the same firm that arranged the Genesis financing, received 2,420,204 shares and Cawston Enterprises received 2,866,570 of CWSI as well.
Pacific Rim Consultants Inc., whose officers are Justin A. Wolfson, Caeli R. Wolfson Widger, Jonathan A. Wolfson, and Gregory T. Wolfson, received 3,089,753 shares in China Wind Systems or Green Power. Gary L Wolfson is the registered agent for Pacific Rim Consultants as well as former Genesis Chairman of the Board and CEO and CEO of Genesis Holdings.
Furthermore, in addition to the arbitration and current litigation cases, Capital Research Group will hold a shareholder caucus, via teleconference on November 28, 2008 at 12 pm EST. The purpose of this teleconference and online gathering will be to discuss the prospect of potential shareholder litigation against Genesis Pharmaceutical Enterprise, GTEC Current and Past Directors and GTEC Holdings. The telephone number for the conference is 1-888-296-6828 and the pass code is 516928.
China West II is represented by Jeffrey Tew, Esq., Tew Cardenas, 15th Floor Four Seasons Tower, 1441 Brickell Avenue, Miami, FL 3331. Genesis is represented by Benjamin Olive, Esq., Olive & Associates, 2438 E. Las Olas Blvd., Fort Lauderdale, FL 33301. China Wind Systems traded as high as $6.00.
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