Securities Fraud Lawyer Blog
Judgement against Ronald J. Robinson former CEO of Virtual Communications Corporation
The Law Office of David Liebrader is pleased to announce a judgment in the Reva Waldo vs. Virtual Communications Corporation and Ronald J. Robinson case in Clark County, Nevada District Court after a bench trial before Judge Timothy Williams in Dept. 16.
The Judgment is against Las Vegas businessman Ronald J. Robinson, who guaranteed the promissory note issued by Virtual Communications Corporation, creator of the ALICE virtual receptionist system.
The judgment is a complete vindication for the investor, Reva Waldo, who invested $111,000 in April, 2014 based upon Virtual Communications Corporation’s promise to repay the investment in 18 months. The loan was personally guaranteed by Ronald J. Robinson, the Chairman of Virtual Communications Corporation.
When the Note came due Virtual Communications Corporation failed to repay Ms. Waldo, and Ronald J. Robinson refused to honor his guarantee.
Ms. Waldo then filed suit in Clark County (Nevada) District Court to recoup her lost principal and interest. After Ms. Waldo won a summary judgment motion against Virtual Communications Corporation for the failure to repay the money loaned on the Note, the company filed for bankruptcy, and Ms. Waldo continued prosecuting her case against Ronald J. Robinson on the guarantee.
Among the claims asserted in the lawsuit were that the promissory notes issued by Virtual Communications Corporation were securities, and that they were sold in violation of the registration requirement of NRS 90.460. Ms. Waldo also alleged that Ronald J. Robison was a control person, and was therefore liable for the unregistered sale. Another cause of action was for violations of the Nevada Deceptive Trade Practices Act.
The case was tried before Judge Timothy Williams over three days. The Judge found for Ms. Waldo on her securities law claims, deceptive trade practices act and breach of contract claims against Ronald J. Robinson, and ordered him to pay Ms. Waldo $111,000 in principal plus $41,958 in interest and penalties and attorney’s fees of $50,935. Ms. Waldo was also entitled to recover her costs of $4,252 for a total judgment of $208,145.
Because Virtual Communications corporation filed for bankruptcy after Ms. Waldo prevailed on her summary judgment motion, the sole remaining defendant was Ronald J. Robinson. The bankruptcy filing allowed Virtual Communications Corporation to convert the notes sold to over 90 people around the country (mostly through self directed IRAs) into shares of the company, a tremendous benefit for Virtual Communications Corporation, but of dubious value for the investors, as the shares are restricted, and are not publicly traded.
The Law Office of David Liebrader continues to represent purchasers of Virtual Communications Corporation’s promissory notes in two other related lawsuits against Ronald J. Robinson, as well as his fellow control person, Vernon Rodriguez. These claims are also pending in the Clark County District Court, and are scheduled to go to trial in the Spring of 2019.