Michael Moore -- 02-CV-8993

Michael Moore
Case #: 02-CV-8993

02-CV-8993

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CV05-0706
Washington State, USA Case Number: CV05-0706 Filed: April, 2005

One Groupe International
Gold Scam Cases

Michael Moore
Freezone Who's Who

Southern District of New York, USA
Case Number: 02-CV-8993
Filed: 2002

This page contains information about allegations against Michael Moore and his company, Gold Today as extracted from the complaint in Case Number: 02-CV-8993, New York.

This law suit was filed in New York State shortly after the collapse of the One Groupe gold scam. A group of investors in what had been One Groupe International, Inc., or OSGOLD.com (also known as Off-Shore Gold), formed a group called OSRecover and sued the principles involved in the One Group Ponzi scheme. Michael Moore and Gold Today are named among the defendants.

The complete document is available in the side bar to the left in two forms.

EXTRACTS FROM THE COMPLAINT

UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF NEW YORK

Civil Action No. 02 CV 8993

Jury Trial Demanded

OSRECOVERY, INC,
        Plaintiff

             - v -

ONE GROUPE INTERNATIONAL, INC., a/k/aOneGroup and its founders, officers and directors; OSGOLD.COM, a/k/aOFFSHORE GOLD, a/k/aOSGOLD, its founders, officers and directors; OSOPPS.COM, a/k/aOFF-SHORE OPPORTUNITIES, a/k/aOSOPPS, its founders, officer and directors; DAVID C. REED in his individual capacity and in his capacity as co-founder of OSGold and OSOpps; RANDY L. JOHNSON, JR. in his individual capacity and in his capacity as cofounder of OSGold and owner of Ecommerce Exchange, Inc.; LATVIAN ECONOMIC COMMERCIAL BANK, a/k/a LATEKO Bank, PAREX BANK, a/k/aParekss Banka; ECOMMERCE EXCHANGE, INC., its founders, officers and directors; ECURRENCY EXCHANGE, INC., its founders, officers and directors; PINNACLE DYNAMICS, LLC, d/b/a FASTGOLD, its Founders, officers and directors; JAMES SHUPPERD in his individual capacity and in his capacity as owner of Fastgold; GOLDNOW CORP., its founders, officers and directors; GRAHAM KELLY in his individual capacity and in his capacity as owner of GoldNow, Corp.; GAITHMANS GOLD NATION LTD., its founders, officers and directors; ERIC GAITHER in his individual capacity, and his capacity as owner of Gaithmans Gold Nation, Inc.; GOLDTODAY, its founders, officers, directors, and shareholders; MICHAEL MOORE in his individual capacity and his capacity as owner of Gold-Today; PECUNIX, INC., its founders, officers and directors; INTERNATIONAL, NEGOTIATIONS TEAM, its founders, officers and directors; RICK YOUNG, in his individual capacity and : his capacity as head of the International Negotiations Team; JOHN DOES 1-100 in their individual capacities and in their capacities as agents for John Doe, Inc.; JOHN : DOE, INC. 1-100, their founders officers and directors;
        Defendants.

1. This action involves a fraud as vast and far-reaching as the Internet itself. The
Defendants' scheme was founded upon a fraudulent operation fronted by the sale of a nonexistent
gold-backed internet currency and was fueled by a mammoth "Ponzi" scheme disguised
as a guaranteed high-yield investment program. As a result of this fraud, the accounts and
investments of the victims of this elaborate fraud, once estimated to be valued in excess of
$250,000,000.00, are now effectively worthless.

6. Key to the success of this elaborate fraud was the participation of the directly involved, complicit and grossly negligent Exchange Makers. The Exchange Makers, who held themselves out as industry experts in GBICs, consistently plugged OSGold and OSOpps. With the help of the Exchange Makers' continuous assurances, giving OSGoId/OSOpps an appearance of legitimacy, OSGold grew to become a prominent Internet institution; quickly achieving the status of the second-largest e-currency in circulation.

7. The Exchange Makers acted as middle-men, attracting depositors and investors into OSGold and OSOpps, and then reaping the rewards in the form of exchange service commissions and compensation for referrals. These Exchange Makers, who held themselves out to be independent third parties trading in various GBICs, were -- in fact -- closely-linked and had close personal relationships with Defendant One Groupe and its principals, and knew or must have known that they were directly or indirectly assisting with an elaborate Ponzi scheme. All the while, these Exchange Makers were turning inordinate profits at the expense of the Plaintiff individual investors, who were forced to make payments to the Exchange Makers for transaction performed on OSGold or OSOpps.

36. Upon information and belief, Defendant Michael Moore ("Moore"), is the owner of Gold-Today. Moore is one of the largest Exchange Makers in the world. Moore is also the vice-president of the eCTA. Moore resides at 4 Chestnut Street, Carnegie 3463, Victoria, Australia.

c. Gold-Today and Michael Moore

100. At all relevant times, Defendant Michael Moore owned and operated the GBIC exchange service provider, Gold-Today. Gold-Today was, at all relevant times, an approved OSGold exchange service provider, as a product of which the OSGold website provided a convenient link to the Gold-Today websites, so that OSGold and OSOpps account-holders might transact business with Moore. Defendant Moore was one of the largest and most reputable Exchange Makers in the world, and at all relevant times, sat on the board of directors of the eCurrency Trade Association (the "eCTA"). Upon information and belief, Defendant Moore is also associated with Defendant Pecunix, having issued a Pecunix press release, dated August 14, 2001. in his name.

101. Plaintiffs who wished to purchase or redeem OSGold could conduct an inexchange or out-exchange through Defendant Gold-Today, but Gold-Today, in turn, was required to transfer the funds, whether hard currency or another e-currency, through OSGold's "gate-keeper," Ecurrency Exchange. To effect an in-exchange, Defendant Moore instructed Plaintiffs to deposit fiat currency, whether by check, credit card or wire transfer, into one of several bank accounts he held in his name, or in the name of Gold-Today, in various banks around the world, including hut not limited to banks located in the United States.

102. At all relevant times, Defendant One Groupe was affirmatively misrepresenting to investors that OSGold was at least 100% backed by gold bullion, and that likewise, OSOpps was a legitimate, viable and secure investment opportunity.

103. Defendant Moore, in his dealings as an approved Exchange Maker for OSGold and as a result of the direct link between the OSGold and Gold-Today websites, persuaded investors to deposit money into the OSGold system and/or purchase interests in OSOpps. In doing so, Defendant Moore collected a commission for his services, and voluntarily assumed a fiduciary duty to his clients.

104. Upon information and belief, Defendant Moore failed to conduct the most cursory due diligence required to protect his customers interests. Upon information and belief, had Defendant Moore conducted even the slightest investigation, he would likely have discovered that OSGold and OSOpps were not backed by gold bullion. Upon information and belief, Defendant Moore would likely have discovered that the OSGold and OSOpps were a front for an elaborate "Ponzi" scheme.

105. Defendant Moore's failure to conduct due diligence and his failure to warn Plaintiffs regarding these misrepresentations caused Plaintiffs to continue to deposit and invest money in the One Groupe companies only to have these funds become irretrievable when OSGold and OSOpps collapsed.

The complaint goes onto allege that the two people responsible for putting together One Groupe International -- David Reed and Randy Johnston -- had resurfaced just months later as a company called Pecunix, and that Michael Moore continued to promote Pecunix despite the recent collapse of their previous enterprise. Indeed, Michael was the Director of Public Relations for Pecunix.

139. Defendant Moore provides a significant amount of information about Pecunix on his Gold-Today website at http://www.gold-today.com/whatispecunix.htm (last visited Nov. 5, 2002). Upon information and belief, Defendant Moore is the Director of Public Relations for Pecunix.

The counts against Michael Moore in this suit are:

COUNT I: Securities Exchange Act, 15 U.S.C. § 78j.
COUNT II: Racketeer Influenced and Corrupt Organizations Act (RICO).
COUNT IV: Aiding and Abetting Common Law Fraud.
COUNT V: Negligent Misrepresentation.
COUNT VI: Breach of Fiduciary Duty.
COUNT XI: Unjust Enrichment.
COUNT XII: Imposition of a Constructive Trust.

Michael Moore Case #: 02-CV-8993

Michael Moore
Case #: 02-CV-8993