It is not for this site to pronounce Carl Freer guilty of fraud in relation to Aluminaid – that is for the courts to do.
Carl Freer, along with all the other defendants, is of course innocent until proven guilty. Please bear that in mind as you read the complaint – which was filed on 23 March 2017. Click this link to see the whole suit: TERRENCE WYLES v AFAR PTE LTD & others. (Mr Wyles was a lawyer working for Carl Freer – not the first to be scammed nor the last.)
Among the claims is that Carl Freer looted his US company (Aluminaid Inc) for his own personal gain and also illegally transferred assets to Aluminaid PTE Ltd a Singapore company (renamed Advanced First Aid Research PTE Ltd aka AFAR). If you are a shareholder in this company you should read the complaint.
The calculation of damages stands at $3.6 Million – if proven.
Whatever the merits of the case, it provides a fascinating insight into how a Carl Freer company operates – its alleged that he co-mingled Company funds to pay for his expensive lifestyle – no doubt, Carl Freer will have a substantive answer to the allegations – but they are being put forward by his own company’s in-house attorney.
The 86 page complaint is filed by Terrence Wyles – he served as in-house counsel for Aluminaid Inc.
Mr. Terrence Wyles can be contacted on (303) 880-0884 or Terry.Wyles@startupiplaw.com to confirm the details of his complaint.
Read the Statement of Facts in the Aluminaid Case
It’s a long lawsuit – full of interesting allegations – if you can’t read it all, at least read these excerpts below and get a flavour of what is alleged.
STATEMENT OF FACTS
22. Plaintiff is an attorney, duly licensed to practice in Colorado, and before the United States Patent and Trademark Office, the U.S. District Court in Colorado, and the U.S. Court of Appeals for the Tenth and Federal Circuits.
23. Plaintiff was engaged by Defendant Carl Freer to be Chief In-House Counsel for the Defendant Corporations, as well as undertake Intellectual Property representation.
24. Initially, the Plaintiff signed an Employment Agreement in May of 2012. At the insistence of, and based on the fraudulent inducements by, Defendant C. Freer, in October 2012 in was subsequently released in favor of the Agreement set forth in the first claim for relief below.
25. At all times during Plaintiff’s employment, in addition to being directed by Officers and Directors of the Aluminaid entities, he was directed by and did work at the direction of Defendant Carl Freer, which work and effort was ratified by the Officers and Directors of the Defendant Corporations.
26. The assets of the Defendant Corporations, including cash, accounts, equipment, and individual property, have been fraudulently transferred ro Aluminaid PTE, Ltd.; Zuperfoods, Inc.; the individual Defendants Carl Freerm James Huntm Allen Sussman, David Warnock, Alex Arendt, Julia Freer, and Adam Freer.
27. Between February, 2012 and January, 2013, Defendants, through West Hills Research & Development, Inc. and through one or more of the corporate officer Defendants, and with the knowledge of the other corporate officer Defendants, misappropriated Defendant Corporation funds that include spending $17,100.40 in personal grocery shopiing; $88,832.92 in personal retail shopping; $55,440.99 in personal-services treatments that included visits to spas and hypnotists and personal legal services; $112,883.39 in miscellaneous non-business-related entertainment expenses that included trips to Disneyland, various concerts, and many expensive restaurant dinners; $108,527.28 in personal vehicle expenses that included motorcycle detailing, private limos, and auto leases; $345,076.82 in miscellaneous and unexplained funds withdrawals from corporate bank accounts, including ATM withdrawals, cash withdrawals, and cashed checks, often at different bank branches on the same day; $12,183.45 in numerous bank charges for insufficient funds and/or collection-service charges; $1,012,713.20 in unexplained bank-wire transfers to persons and/or entities that were not associated with business of the Defendant Corporations; $37,883 in unexplained bank-wire transfers to Defendant Aja Reynolds; $100,261.00 in unexplained bank-wire transfers to Defendent James Hunt; $108,100.00 in unexplained bank-wire transfers to Defendant Zuperfoods Inc. and/or Defendant Ericka Freer; and $247,040.00 in unexplained payments to Beverly Loan Company (a high end pawn broker).
28. Set forth in detail below are transactions in which Defendants are responsible for the looting of at least approximately $2.24-million from the funds of the Defendant Corporations between approximately February 1, 2012 and January 31, 2013. Upon information and belief Defendants’ fraudulent transfers exceed those and include others not listed herein.