McCain adviser sued in business dispute

[DogPoundPup]

Source: Tribunes Washington Bureau

Top McCain campaign adviser Charles Black has been accused of failing in his duties as a director of e-Smart Technologies Inc. by allegedly allowing its CEO to defraud the company, according to an investor's suit filed in federal court in New York Monday.

The suit, brought by Douglas Borwick, of Breckenridge, Colorado, who identified himself as the owner of two million e-Smart shares, is the latest in a series of legal and regulatory difficulties faced by e-Smart before and during Black's tenure as a consultant and director, dating back to mid-2003.

Earlier this month, the Securities and Exchange Commission suspended trading in e-Smart for ten days due to concerns about the accuracy of investor information and the possibility that it was selling unregistered securities. The conduct identified by the SEC forms the basis for much of the suit.

Borwick's complaint alleges that Black and two other directors, Elliot Cole and Thomas Volpe, "directly participated in and/or facilitated (CEO Mary) Grace's, misappropriation or e-Smart's assets for her personal use...allowed Grace to commingle personal and business assets; and failed to disclose potential or actual conflicts of interest...In fact, these board members exercised no corporate governance whatsoever during their tenure, despite their knowledge of Grace's fraudulent activities for an extended period of time."

Read more: http://www.swamppolitics.com/news/politics/blog/2008/10/mccain_adviser_sued_in_busines.html

[annabanana]

1. It couldn't happen to a slimier piece of work. . .

Charlie Black is an Uber-lobbyist and has pretty much pulled the strings for the McFaint crowd. It was only a matter of time until some of his dirty dealings jumped up & bit him in the ass.

I must say though, I like the timing.

[stillcool]

2. oh dear.......

he really wants Johnny to win.