Thursday, April 11, 2019

Frank Gigliotti & Cavallo Winery Committing Fraud in Langley

Frank Gigliotti, the President of Cavallo Winery in Langley, and his accomplices John Claus and Trevor Broad, have allegedly committed fraud and are now being sued by a group of shareholders who saved the company from bankruptcy.

In late 2016, Cavallo Winery was facing foreclosure by Coast Capital Bank and a group of investors assisted the company with an immediate cash injection of $250,000 into Cavallo's operations, which was then followed by several other financings. The terms of this cash injection was Cavallo would enter into a merger agreement with a private BC holding company representing the investors and issue approximately a 30% interest in Cavallo Winery to the investor group (the private BC holding Company).

Court documents show that immediately following the merger, Gigliotti et all, basically embezzled the new monies and in the process, gave the new shareholders (the private BC holding company) shares of a worthless subsidiary. Only time will tell, but hopefully Gigliotti will get his just rewards and loose his winery when he loses in court.

Good Wine, Bad Business | California Cult Classics

There are many in the wine world that believe wine making is an art. Many, often incorrectly, believe that artists don’t make great businessmen. In Canada’s fledging wine industry, Frank Gigliotti seems not to be an exception to this simplification.

Frank Gigliotti is the CEO and head wine maker for a small winery headquartered in Langley, British Columbia (BC). For years he has been importing California grapes to Langley and commercializing the wines through his private wine club, California Cult Classics.There are many comments and reviews online that suggest his wines are some of the best in BC.

It has recently been alleged that this entire operation was under threat of bankruptcy in 2016, and if it were not for a group of investors injecting a substantial amount of cash into the company, Mr. Gigliotti’s entire wine making operations would have gone belly up. Court documents also suggest that this group of investors’ intended to assist in the expansion of the business by taking Mr. Gigliotti’s winemaking operations under the umbrella of a public company.To achieve this goal a merger was completed with a company that had become a reporting issuer in Canada.

The investors are accusing Mr. Gigliotti that following the completion of this merger and once he had access to the investor’s cash, he paid himself a bonus in order to purchase a Ferrari in violation of the agreement. Additionally, soon thereafter Mr. Gigliotti along with his co-defendants in the lawsuit (John Claus, Trevor Broad, Craig Watson, and Darryl Moriyama) dubiously reversed the merger and cut out the very investors that saved his company from bankruptcy.

This group of investors have now filed a lawsuit in Vancouver, BC, alleging fraud and in return they have been sued back by Gigliotti and co. This countersuit in our opinion would be a good read/good laugh for any first year law student, as it seems to be accusing this group of investors for potential activities that have yet to occur.

California Cult Classics and the spin-off company, Cavalo Wine Group Ltd., are still in operation and there is no reason to believe that the quality of the wines have dropped; however, the reputation of the winery and the wine maker are now in question.

Saturday, December 8, 2018

Clever Tricks Followed by Frank Gigliotti, John Claus, Trevor Broad, Craig Watson & Darryl moriyama from Being Bankrupt

Cavallo Winery & Frank Gigliotti give the Canadian wine industry a black eye.
A small Langley winery in BC Canada is facing a lawsuit for fraud. Cavallo Winery led by Frank Gigliotti, John Claus, Trevor Broad, Craig Watson and Darryl Moriyama is being sued by a group of shareholders that invested upwards of $500.000 into Cavallo to save the company from bankruptcy.
In 2016 Cavallo Winery (aka ) a private BC wine club run by Frank Gigliotti of California Cult Classics ( ) had already raised $1,500,000 from investors to establish a successful wine club that purchases quality grapes from Napa and produces wine in BC Canada to be sold to its club members. However the investment had proven to be a complete disaster as Cavallo Winery was faced with the threat of foreclosure by Coast Capital Bank.With few options, Cavallo decided to raise additional funds to convert the winery to a commercial operation and commence production of new wines. The first of several additional financings came in the form of a merger with a private BC holding corporation that injected an immediate $250,000 into Cavallo’s operations which was followed by several other financings. This first cash injection was completed by issuing the aforementioned holding company approximately a 30% interest in Cavallo.
No sooner was the ink dry on the completed merger but Gigliotti managed to have Cavallo make a payment to himself for $400,000 to purchase a new Ferrari. Such payment was made exclusively against the agreed upon terms of the merger agreement.When shareholders complained about such fraudulent use of funds, Gigliotti and his cohorts decided to not recognize the agreed upon issuance of 30%of the corporate shares to the new funding shareholders as well as shares to other shareholders causing the lawsuit against Cavallo for fraud and mismanagement of funds.

Read more at : Lawsuit Against Fraud and Mismanagement of Canvallo Winery Fund

Frank Gigliotti & Cavallo Winery Committing Fraud in Langley

Frank Gigliotti, the President of Cavallo Winery in Langley, and his accomplices John Claus and Trevor Broad, have allegedly committed f...