Short-Seller Hits Back Against Banc of California (BANC); Threatens to Release 'Thousands' of Pages of Documents
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In part, Aurelius offered the following summary for today's post:
We believe that Banc of California deceived investors in both its most recently filed 8-k with the SEC and public conference call. Under the false guise of "Independence", BANC hired Winston & Strawn, defense counsel to both COR and Steven Sugarman (personally) with leading the long-running and previously undisclosed internal investigation into "potential impropriety" involving COR, BANC executives, and Jason Galanis. In our opinion, the company's statements to investors concerning the independence of the investigation are materially false and cast doubt on every aspect of the company's public statements regarding Jason Galanis.
We re-iterate our research conclusions which rely on publicly obtained documents that indisputably demonstrate ties between BANC's senior leadership and Jason Galanis. While failing to address the vast majority of our report, BANC has confused investors by mis-characterizing the declaration of an FBI agent which merely demonstrates that an unnamed COR Capital representative made statements to the FBI denying ties to Galanis and entities he controlled.
Numerous research findings directly contradict COR Capital's statement to the FBI as well as BANC's contention that COR had no "entanglements" with Galanis controlled entities. Undisclosed litigation documents filed by the very firm leading BANC's independent investigation show that Steven Sugarman's COR made a convertible debt investment in Burnham Financial alongside COR Fund Advisors, an entity controlled by Galanis and named in BANC's retraction demand to Seeking Alpha.
We demand that Banc of California immediately retract its censorship demands against Seeking Alpha and abandon its attempts to infringe on our protected first amendment rights to publish critical research opinions.
We will soon release thousands of pages of our source materials at www.bancexposed.com; we demand that BANC and Steven Sugarman join our efforts in providing the disclosure and documentation it has thus far failed to provide investors and taxpayers.
Banc of California shares are moving lower amid the news.
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