by AllTheNewsExposeJuly 31, 2012
IneedMe is being sued in federal court for fraud by former executive
NEW YORK, July 30 – Sources close to the medical device company, Ineedmd, Inc., have confirmed that a former senior executive of the company is preparing to open a fraud case against them in federal court. The allegations are based on wrongful termination of his employment in connection with his exposure of systematic corporate wrongdoing and fraud. Ineedmd is a medical devise manufacture who makes cardiac diagnostic devices, they were formed in December of 2000, and are based out of Manhattan, New York.
The former executive claims that when his intention to act as a whistle blower became known, the board of director terminated his employment with the company. This same executive made a number of loans to the company to sustain business operation and that when terminated the board refused to acknowledge this debt.
During the time period of January 2011 through February 2012, the former executive claims that investors and customers of Ineedmd were mislead about the company’s products and sales. One of the center points of these allegations is that they used false market research reports utilized by the company to raise over $1.5 million dollars from investors. These same market research reports, that a third party research firm was paid to prepared, were used to promote the company’s products to potential customers. It is during this same time period that the company was correcting a vital design flaw that prevented their products from working properly. The research reports that were used extensively by the company, to the extent of being included as an integral part of the company’s private placement memorandum, make no mention of any products malfunctioning during the numerous field tests cited in the research.
The company is believed to owe this former executive approximately $250,000 in loans that were not repaid, over a years back salary, and stock and option bonuses that were promised but never paid. The executive also believes that the company in its 12 years of operation was able to induce a number of other investments and loans, totaling 5 million dollars, based on false and misleading information.
Originally Submitted by NYNewsLeaks@gmail.com
News Source: http://www.free-press-release.com/news-manhattan-medical-device-company-accused-of-5-million-dollar-fraud-1343750232.html
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