As Web's World Turns

[Websman]

And then we have a new 8K which is actually encouraging...

http://biz.yahoo.com/e/100521/jbii.ob8-k.html

[Websman]

NIAGARA FALLS, Ontario, May 21, 2010 (GLOBE NEWSWIRE) -- JBI, Inc. (the "Company") (OTCBB:JBII - News) has completed a private placement. A total of 488,779 shares were sold at $4.00 per share allowing the Company to raise a total of $1,955,116.


JBI CEO John Bordynuik commented, "The money raised in this placement will allow JBI to run all continuing operations and support development of our Plastic2Oil rollout."


About JBI, Inc.


JBI, Inc. is a technology company focused on injecting intelligence into existing products and processes, making them efficient and profitable. JBI seeks to innovate new solutions to issues facing today's world, including environmental concerns. JBI currently has four business lines including JBI's tape data recovery, JAVACO, PAK-IT LLC and our new Plastic2Oil business. Information on our company and all of our products and services can be found at http://www.jbiglobal.com/.


Forward Looking Statements


This press release contains statements which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act. The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees as of 1995. Those statements include statements regarding the intent, belief or current expectations of JBI, Inc., and members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.

[riverbabe]

This is the one about the accountants.

On May 19, 2010 John Bordynuik, President and Chief Executive Officer and Director of JBI, Inc., (the “Company”), concluded that the Company’s previously issued audited financial statements for the year ended December 31, 2009, filed on Form 10-K with the Securities & Exchange Commission (“SEC”) on March 31, 2010 and the interim financial statements for the period ended September 30, 2009, filed on Form 10-Q with the SEC on November 16, 2009, should no longer be relied upon due to questions regarding: 1) the accounting treatment and related disclosures of two acquisitions which were completed during 2009 and 2) the valuation of media credits acquired by the Company during 2009 through the issuance of common stock. The Company’s former independent registered public accounting firm Gately and Associates, who was dismissed on May 13, 2010, was informed of the matters disclosed above.

Management is working diligently to correct the errors and file restated financial statements. This restatement will in no way impact the Company's ability to execute its business plan during the 2010 fiscal year. The Company has sufficient cash to complete the P2O factory in Niagara Falls NY and to upgrade the Pak - It facility for retail rollout and to bring the fuel blending site to an operational state

The Company’s newly appointed independent registered public accounting firm of WithumSmith+Brown, PC will review the restated financial statements to be included in the revised Form 10-Q and will audit the financial statements to be included in the revised Form 10-K. Therefore, the above mentioned filings and related financial statements should no longer be relied upon.

[skiracer]

thank you river. interesting. i can only say this, "RUN FOR THE HILLS".

[Websman]

thank you river. interesting. i can only say this, "RUN FOR THE HILLS".

Agreed Ski...And I did run. Although I could have sold at a much higher price, I still took some very nice profits. My average buy price was well under a dollar. I'm happy that I sold today...I suspect that I will be able to buy JBII at a dollar or less soon.

[Websman]

Thanks for posting that River...That news was a huge red flag.

[skiracer]

I'm not condeming John or the stock but whenever I seen something like this in the past it always turns out to be a scam and this is how the unravelling generally starts. Webs, it was one of the strongest picks I have seen here and I made out bigtime with it. I only wish you would have cashed out when it was at the $7/7.50 level. I'm glad your out. You can always get back in.

[Websman]

I'm not condeming John or the stock but whenever I seen something like this in the past it always turns out to be a scam and this is how the unravelling generally starts. Webs, it was one of the strongest picks I have seen here and I made out bigtime with it. I only wish you would have cashed out when it was at the $7/7.50 level. I'm glad your out. You can always get back in.

It would have been nice to get out at the top, but I did buy very close to the bottom, so I made some very nice profits. I need to start thinking more like you Ski. I have a feeling that JBII will be back to a dollar or less by the end of next week.

[Websman]

Great post from Ihub about JBII...



You miss the point. This situation (the restatement coupled with the recent PP), is much more serious than I think people realize. It could mean the end of the company. The shares may not only drop substantially further, they might be worthless.

A CEO is held to a higher standard than that. He cannot say that he simply did not know. In fact, because of his role, he ought to have known. This has come up in recent years with all of the scams and false accounting practices that have been realized.

as an example, look up Nortel. I like to quote it because I am Canadian and hence familiar with it. Nortel was finally dealt with a class action lawsuit directed when Frank Dunn was the CEO back in 2004. I have followed this over the yeaars and do not know the outcome, but I know that the line is crossed when CEO is held personally liable. I know this was threatened with Dunn and with his predecessor, John Roth, who is now comfortably enjoying his retirement up in Ottawa with his fleet of classic cars. In fact, I remember reading about Roth getting some insurancce or something in case he is found personally liable in these proceedings.

In 2004 Nortel, after Roth led the company to failure, tried to come back by cooking the books. Quite blatantly. Inflating sales numbers and moving sales around. The purpose was to get the share price up to where they could try to lower the debt/equity ratio and improve their balance sheet. I remember that I had some shares at the time. I heard the news about restatement and hesitated to sell out of my inexperience.

Anyway, back to JBII. JB has come out and said (FB?) that the share price is beyond his control. It will fluctuate. Well, it fluctuated just fine for him when he negotiated this PP, didn't it? It served to justify a $4 share price for the PP, thereby improving his balance sheet immensely. That is suspicious enough. If he did anything to affect the share price... he is accountable.

But, more importantly, the bottom line is that he knew, or OUGHT TO HAVE KNOWN, that the financials were not to be relied upon. That means he misled those investors That is, legally, misrepresentation. Misrepresentation is the legal word for lying.

I would not be surprised of we hear of lawsuits over this. If I were one of those investors, I would want some of my money back.

As soon as it comes to lawsuits, management is totally distracted and the stock is doomed. and if I am not mistaken, if they don't get their house in order in 30 days they go to the pink sheets.

therefore, this stock could be worthless as of now. This drop could continue much further, below a buck.. and it could be worthless. trading halt, etc, etc.... add to that the fact that JBII is running out of cash...

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=50472389

[riverbabe]

As JB's world turns...

The latest post from JB on InvestorsHub:

Auditor Questions Answered:

When I acquired 310 Holdings Inc, Moore & Associates was the
auditor. Our securities lawyer at the time, Joe Emas, advised us not to
change auditors as the original owners had done so often. We did our DD on
Moore and found them to be basically a "shell" auditor and we would
eventually have to change them. Gately & Associates audited the acquisition
purchase of JBI as it was a straight forward sale. We barcoded every asset
and built a highly detailed asset ledger so that we were prepared to retain
a large firm after we got a couple of acquisitions complete. There was no
point in hiring one of the big 4 at that time and paying several hundred
thousand per year in auditing and quarterly reviews until we were further
along to warrant that. As you'll recall, Moore's left with little notice and
misrepresented why they could now longer audit. Seal's was just as
problematic so we used Gately and Associates to perform the review until we
retain one of the big-4.

We are now interviewing those firms now and looking for a CFO and will
release news soon about our decision. We are proceeding carefully as the CFO
must be a good fit and so must the firm. We are obviously looking in Boston
and need a firm with specialists in Oil, Gas, Technology and M&A. Due to the
pending chemical company acquisition, other acquisitions already in the
queue, the P2O which is proceeding well, and the tape business, it is now
the right time to retain one of the large auditing firms. Things are moving
very quickly -- while it looked like we could use a small auditing firm for
at least a couple of quarters during this transition, retaining a large firm
is a high priority now. I am flying to Boston next week to meet with one.

Regards,

John Bordynuik
CEO
310 Holdings Inc

[billyjoe]

River,
I find it hard to believe that JBII and all its components, if totally legit and ground breaking with a successful P2O strategy, would go down the toilet even with accounting irregularities. Something else is also not kosher.

-----------------billy

[riverbabe]

River,
I find it hard to believe that JBII and all its components, if totally legit and ground breaking with a successful P2O strategy, would go down the toilet even with accounting irregularities. Something else is also not kosher.

-----------------billy

Billy, I agree about the "something else." Don't need JB's 170 IQ to use my nose. Please note that he does not identify himself as CEO of JBII in this post. And he omits mention of Pak-It. This is not the first time that the phrase "delusions of grandeur" has crossed my mind, knowing all we know about the company from doing our own DD. But .... it's a soap opera .... and amusing only if one has no stake in it.

But congrats to all who made big money on it. It was a beautiful momentum stock there for a while.

[billyjoe]

River,
JBII and John always took pride in the faith their families and friends took in the business. Surely John would do nothing to jeopardize that trust, yet the private placement of nearly 2 million dollars worth of stock at $4/share to mostly those same family members and officers will probably have lost 50% or more of value by Monday. I'll be reading John's posts on facebook the next few days for his explanation.

------------billy

[Websman]

John has yet to provide an explanation...I would imagine that he is having a very stressful weekend. I'm sure that I'm not the only investor that has lost confidence in John this week, and I'm definitely not the only one that took profits and ran. I also thought that announcing a $180K salary while the stock was dropping was in very poor taste.

Considering that JBII closed near the low of the day on high volume, I would expect the selling to continue next week, until the share price hits a dollar...or even less. The OTC market has a way of punishing CEO's that screw up.

[Karel]

Oops, that is not nice news after a nice vacation. I just sold my remaining position in JBII for a 30% loss, but my "profit cushion" was big enough for a 35% gain overall. So no tears here.

Regards,

Karel