SALT LAKE CITY, Aug. 2, 2013 (GLOBE NEWSWIRE) -- According to Islet Holdings, new allegations of conspiracy and racketeering and a written confession from a scheme participant have led to the resignation of CEO John Steel and the restructuring of the management team at Islet Sciences, Inc. (OTCBB:ISLT). The restructuring was announced after an amended complaint was filed in federal court charging that Islet Sciences has been enticing investments using false documents, and that Steel has "made numerous threats against anyone related to Isletech."
The litigation was brought by Islet Holdings, Inc., and its subsidiary Isletech, Inc., against Islet Sciences, Inc.; CEO John Steel; director Dr. Jonathan Lakey; and Charles Daniel ("Dan") Rhodes. According to Salt Lake attorney Marcus Mumford, who is representing Islet Holdings and Isletech in the lawsuit, the new complaint includes a confession from Mr. Rhodes admitting his participation in a fraud scheme orchestrated by Steel on behalf of Islet Sciences. In his confession, Rhodes describes how Isletech purchased intellectual property out of the MicroIslet, Inc., bankruptcy proceedings in 2009, but that Steel later "lied" and said that it had been purchased someone else. Steel then purported to transfer the MicroIslet property to Islet Sciences, which has been "building off the patents and intellectual property of MicroIslet" ever since. The amended federal complaint also alleges claims for violations of the Racketeer Influenced And Corrupt Organizations Act (Civil RICO) and theft.
Islet Sciences, Inc., has claimed the intellectual property in filings with the SEC as part of its ongoing development of technologies for infusion therapy for insulin-dependent diabetes, including methods for culturing, isolation, maturation, and immunoprotection (microencapsulation) of islet cells. The lawsuit seeks a declaratory judgment to establish the ownership of the critical MicroIslet patents and intellectual property and damages for patent infringement.
The case is Islet Holdings, Inc., et al. v. Islet Sciences, Inc., et al., Case No. 2:12-cv-00799-RJS (D. Utah), where the federal judge assigned to the case has queried whether anyone has reported the alleged activities to the enforcement arm of the SEC. As part of his firm's continuing investigation, Mumford encourages all persons with information about wrongdoing at Islet Sciences to contact his firm MUMFORD PC.
Marcus R. Mumford Tel: 801-428-2000