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First Nail in the Coffin: Suspension of Corix Bioscience (CXBS) Marks the Beginning of the End For Ogburn, Zarinegar, Paesano and Bone
Initially Posted: April 16, 2018 5:00 p.m. PDT   

Michael & Debbie Ogburn
Two Peas in the Same Crooked Pod
After my second submission of documents to the SEC and FINRA, detailing the fraud ongoing at Corix Bioscience, Inc. (CXBS) , the SEC finally decided that enough was enough, and on Friday, slammed the brakes on trading in the scam. Unfortunately, it was not in time to stop the fleecing of the public by CEOs Michael Ogburn and Sean Zarinegar before him, who were aided by a large cast of characters, including the Michigan law firm of Paesano, Akkashian, Apkarian, P.C. I predict that problems are afoot for the firm, especially attorneys, Anthony Paesano and Devin Bone, as a result of the aid and comfort they have provided to the perpetrators of perhaps the most brazen single scheme to defraud the public I have ever seen, and don't forget that I have dealt with Michael Osborn and attorney Jehu Hand. The former is currently serving a 77 month stint and the latter is going on trial for his life on April 30th, facing a 20 year vacation as a guest of the federal government.

Trading in CXBS shares will resume on the grey market in ten days, where they will quickly fall towards zero and enter the oblivion that almost every suspended stock endures.

The SEC's suspension order offers a vague reference to my previous blog postings for details on some of the reasons behind the suspension. Those postings can be viewed here, here and here.
"because of questions regarding the accuracy of assertions by CXBS, a Wyoming corporation whose principal place of business is listed as Surprise, Arizona, and by others, in current Internet postings available to investors concerning, among other things, the company’s assets and operations in Nevada."
The order goes on to question the genuineness of the Nevada license posted on the CXBS website.
"This information includes claims that CXBS holds a valid, state-issued export license in Nevada for growing, processing, and distributing industrial hemp."
Ogburn's suspicious Nevada license has been posted on the Corix website as well as a just-as-suspicious license to import product to Switzerland. This goes hand-in-hand with Corix's announced, yet refuted Lesotho license.

Attorney Devin Bone
Fortunately, a day before the suspension, I had lost my motion to revoke Devin Bone's pro hac vice status--as a Michigan licensed attorney, he needed to be sponsored and apply to be admitted to practice in the California court--because of my bad form in writing the motion. At first I was disappointed, and I had intended to again move the court to ding him, as he is a necessary witness in the case, but now that Ogburn will not have the ability to pay his attorneys for much longer, I want Devin just where he is and let his firm work for free. Had Devin lost his pro hac vice status, the responsibility for the defense would have fallen to sponsoring attorney, Paul Jacobs, with whom it is an absolute pleasure to do business as an adversary. On the other hand, I wonder where Ogburn would get the money to pay Mr. Jacobs, whereas me thinks that the Paesano firm is stuck, especially facing an imminent derivative claim for malpractice, and I would think malpractice claims from other savvy victims.

In further developments...

Corix attorney, Devin Bone, has been very adept at fighting my attempts to depose him for his role with Corix. While he won't be able to hide from testifying in the upcoming derivative suit against him and the Paesano firm for malpractice, it is interesting that he is working so hard to avoid providing sworn testimony now. What do you have to hide Devin?  Of course he knows that I know what I know, because we have discussed it and he is quite concerned, as he should be.

Last week, I took the depositions of Sean Zarinegar and Corporate Secretary, Christ Froese. I came away thinking that Sean was not necessarily inherently evil like Michael Ogburn, but definitely negligent in his fraudulent scheme to sell investments without a license, much of it to seniors. Then he was ill-advised to roll those investments into the public shell which became American Housing Income Trust, Inc. (AHIT), without investor authorization. After realizing he bit off more than he could chew with the public entity, Sean made the stupidest mistake of all, and that was letting the very crooked Michael Ogburn get his claws into the public company which he turned into Corix. Sean, stupidity is not a defense, and neither is the lack of ill-intent. What you did was illegal and you will have to pay for your deeds.

On the other hand, Christ Froese was like a deer caught in the headlights, when I informed her about just how much trouble she was in. She was a cooperative deponent and did not seem intent to obfuscate the truth. Unfortunately, she thinks that a Corporate Secretary is just that, a fancy name for an administrative assistant, and in spite of her testimony that she understands the duties of a Corporate Secretary as an officer of the company, she has no clue, and does not grasp the gravity of the situation in which she now finds herself. At the end of the deposition, I informed her that she needs to get her own attorney and consider suing Paesano et al. for malpractice.

I also told Sean Zarinegar that he needs another attorney, after he testified that he did not sign a defense and indemnity agreement. Devin Bone wouldn't let him answer my question as to whether an attorney conflict waiver existed, and I suspect that there isn't one with him or with Christ.

Anthony Paesano
In my unqualified opinion, Sean and Christ both have strong malpractice cases against the Paesano firm, and I only hope that they will not be conned into signing backdated agreements. At any rate, it will not help them in this case, and will ruin their only shot at having someone else (i.e. Paesano) defer their potential liabilities.

In the meantime, Ogburn, Devin Bone, and Anthony Paesano have big problems coming their way. The suspension of trading in Corix Bioscience is just the beginning.

~ George