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.