FAIRFIELD, Conn., Oct. 26, 2007 (PRIME NEWSWIRE) -- Competitive Technologies, Inc. (AMEX:CTT) announced that Judge Peter C. Dorsey of the U.S. District Court of the District of Connecticut issued a written order today stating that Ben Marcovitch and all defendants in the case, and their associates, be enjoined as of October 22, 2007 from any further use of any remaining part of the $750,000 that they obtained from CTT. Also, the Judge ordered that on or before November 21, 2007, the defendants must present to CTT's counsel a detailed, written disclosure identifying all accounts in which any portion of the $750,000 payment made by CTT to defendant Agrofrut, E.U. is being held. In addition, defendants must provide a complete description of the disposition of any portion of the CTT payment that is not being held in such accounts.
The hearing on October 22, 2007 was a show cause hearing regarding CTT's Application for Prejudgment Remedy and Motion for Disclosure of Assets in CTT's case against Ben Marcovitch, Betty Rios Valencia, the President and CEO of Agrofrut and Mr. Marcovitch's former spouse, Agrofrut and John Derek Elwin, III. Defendants requested a 30 day continuance without an asset freeze because they had just retained counsel in the matter and claimed that they were unprepared to contest CTT's allegations. The Court adjourned the hearing on CTT's Application for Prejudgment Remedy until December 7, 2007, but prohibited any further use of the $750,000 at-issue, and imposed other requirements. The asset freeze remains in effect until a motion is granted by the Court to change the order.
"This is a successful step in CTT's procedure to recovering the $750,000 in funds from the Agrofrut option agreement," said John B. Nano, CTT's Chairman, President and CEO. "We thank the Court for the actions taken. Among other relief, CTT is also requesting punitive damages and payment of attorneys' fees."
On September 20, 2007, CTT filed an Application for Prejudgment Remedy and Motion for Disclosure of Assets regarding its complaint filed on August 31, 2007 in U.S. District Court against Ben Marcovitch and the other co-defendants stating that the parties, among other things, conspired to fraudulently obtain funds from CTT using the Agrofrut transaction. The Motion for Disclosure of Assets seeks an order requiring all defendants in the suit to present a statement of any and all real and/or personal property in which any defendant has an interest, and any and all money, sums or debts owing to any of the defendants, including but not limited to accounts in banks or other institutions, sufficient to satisfy the $750,000 prejudgment remedy that CTT requested.
Mr. Marcovitch was removed from CTT's Board of Directors on August 8, 2007 by unanimous vote of CTT's five Directors for violating CTT's Code of Conduct. At that time, CTT also withdrew from its involvement with Agrofrut, a nutraceutical firm brought to CTT by Mr. Marcovitch.
As announced on August 15, 2007, CTT retained Greenberg Traurig, LLP, an international law firm, to recover the funds from Agrofrut. CTT also retained a Colombia-based law firm to assist in CTT's recovery efforts in Colombia. As stated in the complaint, Breen & Associates, an independent investigative firm, developed evidence that showed that Mr. Marcovitch and Agrofrut provided CTT's Board of Directors with false and misleading information in a conspiracy to defraud the company using the Agrofrut transaction. Further, the complaint states that Mr. Marcovitch and Agrofrut submitted papers that sold this transaction to CTT's Board by representing that Dr. Raul Aragon Davalos, listed as a key executive, and Chief Scientist of Agrofrut, was a pivotal part of Agrofrut as inventor of its revolutionary new technology that would remove highly complex compounds such as bromelain and xylitol, at better than 99% purity, from pineapples, and other organic waste. The complaint shows that the Breen findings included the fact that Dr. Raul Aragon Davalos had actually been killed in a drive-by shooting in Cali, Colombia on February 28, 2007. As cited in the complaint, this significant fact was not disclosed to CTT by Mr. Marcovitch or Agrofrut prior to or during the March 28, 2007 Board meeting held to evaluate the Agrofrut transaction, at which Mr. Marcovitch was in attendance. As noted in the complaint, Dr. Raul Aragon Davalos's assassination was known to Mr. Marcovitch and Ms. Rios Valencia, as well as to other executives of Agrofrut, but was never revealed to CTT by them. Also noted in the complaint, Mr. Marcovitch had admitted to a CTT outside counsel, and to a CTT shareholder, that he had attended Dr. Raul Aragon Davalos's funeral. The complaint states that the investigations have shown that Dr. Raul Aragon Davalos was a convicted drug trafficker and that Ms. Rios Valencia also has a drug conviction record. The complaint also says that, among other things, the involvement of Ben Marcovitch, Betty Rios Valencia and John Derek Elwin, III with convicted drug traffickers resulted in CTT's decisive actions against these individuals.
Mr. Nano added, "CTT continues to move ahead, focusing on generating value from our technologies and aggressively marketing our pain management therapy, stress reduction device, UAD tubular-connection, LED portfolio, bone biomaterial and Radio Alert Warning System technologies, as well as Lupus diagnostic and monitoring, and cholesterol trapping and regeneration, to drive revenue growth, improve profitability and create shareholder value. Our full technology portfolio may be viewed on our website."
About Competitive Technologies, Inc.
Competitive Technologies, established in 1968, is a full service technology transfer and licensing provider focused on the technology needs of its customers and transforming those requirements into commercially viable solutions. CTT is a global leader in identifying, developing and commercializing innovative technologies in life, electronic, nano, and physical sciences developed by universities, companies and inventors. CTT maximizes the value of intellectual assets for the benefit of its customers, clients and shareholders. Visit CTT's website: www.competitivetech.net
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