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CRGP Seeks $13 Million Arbitration Against GTEC(Marketwire Via Acquire Media NewsEdge) MIAMI, FL, September 30 / MARKET WIRE/ -- Capital Research Group Partners, Inc. and Capital Research Group, Inc. (CRG&P) have filed a $13 Million arbitration case against Genesis Pharmaceuticals (OTCBB: GNPH), formerly Genesis Technology Group or GTEC. Genesis Technology is currently a wholly owned subsidiary of Genesis Pharmaceuticals (OTCBB: GNPH), now operating as Genesis Holdings. Since 2003, CRG&P, through a myriad of successive contracts, acted as a premier consultant to GTEC or Genesis. CRG&P, through its significant associations, expertise and reputation, was the driving force behind the emergence of GTEC, from a small unknown start-up, to a profitable and noteworthy operation that became an admirable acquisition target by a Chinese pharmaceutical giant. The arbitration suit alleges GTEC violated the 10% share issuance and registration clause of the standard consulting agreement by issuing and registering over 300 million additional shares, and not compensating CRG&P under this and other agreements ultimately diluting CRGP's position by almost 500%. Since October 4, 2007 GTEC has authorized an additional 800 million shares. The $13 Million arbitration has a hearing date set for December 1, 2008. Peter Antipatis, CRGP Director, observed: "Genesis has crossed the line by not honoring our contract, which former CEO Gary Wolfson, now GTEC Holdings CEO, sought out time and time again over the course of 5 years. CRG&P fostered GTEC's business model, advised GTEC on several capital campaigns that garnered several million dollars for GTEC. We created both a marketing curriculum and a quality investor relation program that increased the market cap 800% on several campaigns." Antipatis further said, "We forged a new business model for GTEC by helping their client companies reach public company status. Such examples are Lotus, Gold Horse and China Wind Systems. We know that the benefits to Genesis shareholders should be a dramatic increase in shareholder valuation and this dilution and refusal to honor our contracts is contributing to the contrary." "We made several trips to China, visiting GTEC companies, lobbying potential and current clients, as GTEC's largest shareholders, as well as corporate directors, to help the company survive during its darkest hour. GTEC was able to gain contracts through the Capital Research reputation and rich legacy to obtain sustainable profitability and in turn consummate the merger with the Chinese Pharmaceutical Company. GTEC officers did extremely well, but the shareholders, and CRG&P included, continue to suffer," said Mr. Antipatis. Furthermore, in addition to the arbitration case, Capital Research Group will hold a shareholder caucus, via teleconference on October 15, 2008 at 12 pm EDT. 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. Agenda items will include, but will not be limited to, the following: 1. Current and past corporate officers may have engaged in schemes to divert cash and assets from GTEC and conceal self-dealings from fellow Director's and GTEC public shareholders. 2. Activity of current and past officers may have been reckless and possibly did not fulfill their fiduciary obligations. Officers may have engaged in a covert defalcation of corporate funds. 3. GTEC possibly failed to disclose or publicize the failure or loss of corporate contracts and potentially failed to disclose in the Management's Discussion and Analysis ("MD&A"). 4. GTEC officers may have acted recklessly by creating a series of shadow companies that would operate as GTEC in China such as Genesis Equity Partners Capital Group, Pacific Rim Consultants Inc. and Shaohua Tan and Partners, Inc. 5. Officers may have self-dealt contracts for their own personal benefit through shadow companies with identical or similar names to GTEC, and or subsidiaries such as Genesis China and Genesis Equity Partners LLC (GEP). 6. GTEC officers, through self-dealing, may have violated their fiduciary obligations and may have been reckless by commandeering the following contracts which together are in value over $20 million. Huyang Electric Co. LTD (GREEN POWER) now China Wind Systems, Western China Energy Company (ZHONGDA), Sino Steel (SITE), and Lizzie Gardens (LG). 7. Moreover, in October 2007, Genesis Chairman and CEO Gary Wolfson wrote a letter to shareowners of GTEC in which he may have misled the investing public about his intentions and role with Genesis Pharmaceuticals, GTEC Holdings, corporate dividends, and contracts. 8. Officer may have breached their fiduciary duty to shareowners and the GTEC Board of Directors by failing to disclose conflicts of interest. The teleconference will be a forum to determine potential indemnity, discuss shareholders' rights and other items and behaviors of interest that will be determined from the arbitration discovery process. If you would like to participate on the conference call, please send an email to [email protected]. In the email, please include your full name, address and the phone number you will be calling in from. Only these numbers will be permitted to join the call. If you have a mechanism that blocks caller ID, please disable it or utilize a different number. Safe Harbor Statement Certain statements set forth in this press release constitute "forward-looking statements." Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance or achievements, and may contain the words "estimate," "project," "intend," "forecast," "anticipate," "plan," "planning," "expect," "believe," "will likely," "should," "could," "would," "may" or words or expressions of similar meaning. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the company's actual results and financial position to differ materially from those included within the forward-looking statements. Forward-looking statements involve risks and uncertainties, including those relating to the Company's ability to grow its business. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance. The potential risks and uncertainties include, among others, the Company's limited operating history, the limited financial resources, domestic or global economic conditions -- especially those relating to China, activities of competitors and the presence of new or additional competition, and changes in Federal or State laws, restrictions and regulations on doing business in a foreign country, in particular China, and conditions of equity markets. More information about the potential factors that could affect the Company's business and financial results is included in the Company's filings, available via the United States Securities and Exchange Commission. Contact: Capital Research Group Partners, Inc. Peter AntipatisEmail Contact 973-332-1366 Copyright ? 2008 Marketwire |