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Fraud and Forgery Abound at Corix Bioscience (CXBS) - Part 2
Initially Posted: March 1, 2018 4:00 a.m. PST   Last Updated: March 2, 2018 6:30 a.m. PST

Michael and Debbie Ogburn
March 2, 2018: Just hours after this article was first posted, California Attorney Paul Jacobs informed me that he would not no longer be appearing on behalf of the defendants at any more depositions or any other events having to do with this case.  It appears that he may having an internal struggle with suborning perjury, as I speculated below.

March 1, 2018: As my case against Corix Bioscience, Inc. unfolds, the events that took place over the last few years--expressly and successfully designed to defraud the investing public--have become clear to me.

As I will detail in the upcoming amended complaint, the current Corix fiasco began as a Ponzi-scheme perpetrated by Sean Zarinegar, who sold high interest real estate investments without a license, and then when he could no longer make the interest payments, rolled the principal amounts of those investments into American Housing Income Trust, Inc. (AHIT) exchanging the principal amounts into restricted stock, without the consent of the investors. One such investor has already received an arbitration award. Other investors have come forward, responding to my press release of January 2nd and to my previous blog post regarding the Corix fraud.  To date, many of the certificates given to those who were hoodwinked out of their investments have not had their legends removed, and 3 years later several of the victims of Zarinegar's Ponzi-scheme are still unable to sell those shares. Zarinegar, however, had millions of free-trading shares to sell, giving him the opportunity to again rape his marks. I have not yet established whether Zarinegar did indeed sell those shares as of this writing, but I will find out. In the meantime, you can draw your own conclusions.

Sean Zarinegar
As the AHIT scam played itself out with phony press releases and the doling out of unearned stock and other compensation, and with Zarinegar unable to find additional customers to sucker for his private placement stock, he decided to abandon ship, and with the aid of Anthony Paesano's firm, he transferred control of the AHIT shell to Michael Ogburn, who needed a vehicle for his phony CBD oil scheme after having messed up with iBrands Corp. (IBRC). Ogburn and associates continued with the raping and pillaging of investors, including divesting what few assets (if any) that Corix had from its AHIT days. Those proceeds were undoubtedly used to line the pockets of the perpetrators.

As I said, the entire scheme will be laid out in an expansive amended complaint that I am currently preparing. In advance of that filing, I have just named six additional defendants: Michael Ogburn, Christ Froese, Brian Werner, Kenneth Hedrick, American Realty Partners, LLC and Preformance Realty Management, LLC. I would not be surprised if there were at least 2 or 3 other defendants identified by the time the complaint is filed in late March.

Anthony Paesano and his firm will not be defendants in this litigation.

I have also dismissed the Breach of Fiduciary Duty cause of action, reserving that allegation for a new derivative lawsuit.

Now back to our current programming...

As expected, the Joaquin Flores deposition revealed under sworn testimony that not only did he not consent to becoming a director of Corix, but that he only became aware of his designation in July 2017, several months after he was already being identified as such in SEC documents filed by Corix. The interesting mystery that one might consider "unsolved" is the identity of the forger who signed Flores' name on federal documents without his consent, as he has testified.

The proverbial finger appears to be pointed at Corix CEO, Michael Ogburn, who according to the sworn testimony of yet another witness, not only had his name unknowingly forged on an SEC filing, but claims to know of one other person who similarly had his identity stolen. According to the witness, Michael Ogburn admitted that he had forged those signatures on a Schedule 14C filed with the SEC on April 21, 2017. I believe that there are still other unrevealed forgeries and will endeavor to discover them.

According to an FBI investigator to whom I have provided evidence in another unrelated case, forging signatures on federal documents is a crime. I could have guessed that.

Attorney Anthony Paesano
It has also now become apparent that ever-present attorney Anthony Paesano, whose firm has in the past and is currently representing Corix, Ogburn, and Sean Zarinegar, knew about at least one instance of a forged Flores signature.  Within correspondence with Flores' attorney, Jennifer Trowbridge (Flores has waived attorney-client privilege in this case) Paesano acknowledges an instance of a case of a forged Flores initialing an a Board of Directors Consent document by Ogburn, but states that Flores gave Ogburn permission to do so. Of course Flores denies that he gave any consent to resolution, which is logical considering that he did not know that he was purportedly a member of the board. Paesano appears to be desperately defending Ogburn's actions.


Within the email thread between Trowbridge and Paesano, Ogburn is accused of several indiscretions, including that of unilaterally entering Corix into the agreement with Chief William Bills, which I spoke about in my previous blog post. While Paesano states that he thought he was speaking to Chief Bills himself during one call, suddenly he was not so sure. It is not clear whether any investigation by Paesano was ever conducted. And if not, why not?


As Chief Bills has testified, no such conversation took place. His name was forged on the Farm Lease Agreement. At a minimum, Paesano knew, or at least should have known, as late as last summer that something was smelly at Corix and with Michael Ogburn. Ah, but he knew sooner. Much sooner.

It is beyond a shadow of a doubt, for example, that Paesano knew, or should have known, that Michael Ogburn is a bad actor. When he facilitated the transaction that transferred control of Corix between recidivist securities fraud violators Sean Zarinegar and Michael Ogburn, Paesano knew, or should have known, that he was exposing the public to a heap of trouble.

I recently discovered other litigation that Ogburn and his wife are involved in in which they are directly and indirectly accused of embezzlement, fraud and securities fraud. In this particular case, Ogburn misrepresented himself with phony background and skills and a forged letter of credit from Wells Fargo Bank, so he could con himself into the position of COO and CFO of Scanware, Inc., As for his indiscretions with Scanware, I'll let the complaint speak for itself:
In February 2015, just months after it was formed, Scanware filed to undertake a public offering of securities by filing an S-1 registration statement with the Securities and Exchange Commission. Commencing in about February 2015, Mr. Ogburn began selling approximately 2,926,000 shares of Common Stock at a price of $0.10 per share, the price proposed in the S-1, to approximately 31 persons. However, at time Mr. Ogburn began selling the shares the SEC had not declared the S-1 effective and, as a result, sale of the shares of Common Stock was not allowed.
Scanware later learned in September 2015 that Mr. Ogburn knew that he should not have sold the securities but did it anyway, that he did not have a list of all investors who purchased the stock, and that he paid or agreed to pay sales commission in cash or stock to persons for selling certain shares of the Common Stock and the recipients of such commissions were not registered broker dealers. Pursuant to federal and state laws, Scanware may not pay commissions to unregistered broker dealers. At the time, the Board of Directors of Scanware and other officers had no knowledge that the sale of stock was unlawful and had no knowledge of the unlawful ommissions.
Scanware also learned in September 2015 that it was paying Mr. Ogburn’s salary as a 1099 payment to his company, Lightwave Capital, which was held in Ms. Ogburn’s name.
Scanware also later learned that Mr. Ogburn was selling his own restricted stock to other purchasers, either directly or through his company, Lightwave Capital, at a price lower than the price of the Company’s shares.
Scanware is informed and believes that such sales did not comply with federal and state securities laws.
Ogburn and his wife are accused of using the proceeds from the illegal stock sales to pay their own exuberant salaries. It is unquestionable that at a minimum, Anthony Paesano knew of these allegations at the time he facilitated the acquisition of control of Corix by Ogburn. It was he who arranged for California counsel for the Ogburns. The Ogburns' turn to criminal activities may be acts of inexcusable desperation. During the summer of 2016, following a court trial, they were thrown out of their Lake Forest, California home for failure to pay rent. Recently, Michael had a $10,000 judgment entered against him for failing to pay his American Express bill. That's right, this financial genius couldn't pay a $10,000 Amex bill.

It's hard to imagine how Michael is going to argue his innocence when it has become clear that not only has he conducted criminal acts, but now an argument could be made that he and Sean Zarinegar should face charges of racketeering.

How will Ogburn counter the numerous claims of forgeries and acts of fraud and securities fraud? One theory I have is that he is just going to deny, deny, deny until he is blue in the face and let the chips fall where they may. Perhaps he has resolved within himself that he just might have to pay the price for his criminal acts, but he'll first make everyone jump though the necessary hoops. That's okay with me, as I have plenty of stamina and the truth is on my side.  I can hold out as long as he can pay his legal bills.  Not that I believe that he is the one paying his legal bills.

My theory is supported by the recent and abrupt cancellation of Ogburn's deposition which was to take place on February 20 and 21st, dates that were picked by Corix's local counsel, Paul Jacobs. On Friday the 16th, Mr. Jacobs informed me by telephone that he was not going to permit Ogburn to proceed with the deposition. He also informed me that Michigan attorney Devin Bone, who had just been admitted to the case pro hac vice, would be attending Ogburn's deposition and not himself (Jacobs). This was unusual because just the week before Mr. Jacobs had stated that he would be at all the depositions and that Mr. Bone would not be attending any more of them. Mr. Bone had previously attended Chief Bills' deposition, but not any of the subsequent ones to date.

The abrupt cancellation seemed odd to me. Why the switch? And then it hit me. I am speculating that Ogburn had informed his counsel--or at least made Mr. Jacobs believe-- that he was going to lie his way through his deposition and Mr. Jacobs had decided that he wasn't going to suborn perjury. It is the only scenario that makes sense. I consulted with two attorneys who both agreed that advance knowledge of a deponent's intent to perjure himself would usually explain why an attorney would abruptly cancel a deposition and not permit his client to proceed. I wonder if Devin Bone has any sense of such ethics.

If Mr. Jacobs' dedication to his ethical responsibility is truly what kept him away from the deposition, it would not be surprising to see him withdraw as defense counsel in the future, at least on behalf of Ogburn and Corix.

In the meantime, if I was Michael Ogburn and Sean Zarinegar, I would be making preparations for extended absenses from my families. As a Corix shareholder, I am preparing for the worst. And If I was Anthony Paesano or any member of his firm... well I would be contacting my insurance carrier.

But that's just me.

~ George

Postscript: As I usually do, before I post my findings against the perpetrators of a fraud, I submit a draft of my pending post to the subjects of the article and their attorneys in order to provide them a 24 hour period to review and point out any inaccuracies in the article. In the case of the post below, attorney Paul Jacobs and the partners of Paesano Akkashian Apkarian, P.C. received the original draft of this article on February 27, 2018.   At the request of Mr. Jacobs, I provided an extension to the review period.  No objections were forthcoming and not a single allegation made in the article you see above was denied by anybody mentioned. Rather, in an ill-conceived attempt to "beat me to the punch" and make it look like they were already addressing the issues brought to light here, Corix Bioscience filed a Form 8-K late on the 27th.  Within that filing, Michael Ogburn employs the gambit I predicted above and that is to deny, deny, deny.  Essentially, Ogburn expects everybody, including the regulators, to believe that the accusers are all lying about the forged signatures (and there are more accusations soon to be put on the record), except him.  That's right, a repeat crook is the only person who isn't lying.  In addition to that being a fanciful notion, Ogburn and his legal pals forgot one thing: Joaquin Flores, Chief William Bills and George Elam had been accusing him of filing forged documents with the SEC since July 2017, including within a letter written to Anthony Paesano from Mr. Flores' attorneys.  If Mr. Ogburn is so honest, then why did he wait until the eve of the posting of this article to deny his indiscretions and claim that he would undo the actions invoked as a result of those forged signatures?  I can say with absolute certainty that, Corix's Form 8-K of February 27th did more to bring Ogburn's crooked actions to the forefront of the minds of the powers that be than my article above ever could.  Way to help me out Michael.

~ G