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Monday, May 14, 2018

TALES FROM THE "KRYPT" Infamous California Con Man Zia Shlaimoun Launches New Scam; Shlaimoun Claims His New Delaware Corporation's KryptMiner “is the latest and fastest crypto-currency mining systems to reach the market”. Will 'KryptMiners' Get Rich...Or Get The Shaft?


SCHLAIMOUN'S WIFE, OUSSHA, THE BAG WOMAN IN NEW SCHEME!

Trolling the gulch between the greedy and the gullible, Zia Shlaimoun has launched a new scam—however, instead of another clinical testing laboratory, the Orange County resident instead jumped feet first into a cryptocurrency mining scheme. 

Aided by his wife, financial bag woman Oussha Jensen Shlaimoun, Zia Shlaimoun cynically claims his KryptMiner PowerDrive and PowerServer system “is the latest and fastest crypto-currency mining systems to reach the market. Utilizing an ultra-fast and efficient FPGA technology (Field Programmable Gate Array) core KryptMiner can be reprogrammed in the field to stay ahead of the game both today and long into the future. An ideal system for miners at all levels looking for a high-power, low operating-cost solution.”

But Shlaimoun offers no proof for those claims...what a surprise!


BACKGROUND On March 15, 2017, Zia Shlaimoun filed what was later described in California court documents as a “skeletal voluntary Chapter 13 bankruptcy petition”. Estimating assets below $50,000, Shlaimoun's statement of affairs did not disclose receipt of any funds in the form of employment, operating a business or otherwise for the last three years. Those schedules stated Shlaimoun received financial assistance from friends and family members. 

Shlaimoun, introduced to readers of this blog through my coverage of Battle Creek's “crooked chiropractor” Robert Buckhannon, was an associate of Buckhannon's during his days as the head of two now-defunct Bradenton, Florida-based hedge funds, Arcanum Equity Fund LLC and Vestium Equity Fund LLC. (Buckhannon plead guilty on August 1, 2017 to one count of conspiracy to commit wire fraud, and is expected to be sentenced in June 2018.)

Buckhannon and Shlaimoun went on to form Goldstar Laboratories in 2016, a clinical testing company that grew out of Buckhannon's earlier Nevada-based entity, Clinical Testing Corp LLC.

Goldstar, which formerly operated in California, Michigan, Missouri, Ohio and Texas, dissolved in an anthill of unpaid debts in 2017.

Shlaimoun testified at a bankruptcy-related examination that he often operated his businesses in cash and had dissipated hundreds of thousands of dollars within a year of the March 15, 2017 bankruptcy petition date. When asked where the hundreds of thousands of dollars in cash were spent, Shlaimoun testified he could not recall. 

Shlaimoun's March 15, 2017 bankruptcy petition was filed just prior to what would have been the final day of trial in an unlawful detainer civil action against the Shlaimoun. The petition was also filed on the eve of the final briefing deadline for another plaintiff to submit its final closing argument in connection with a civil fraud trial that ended in January of 2017. 

That petition succeeded in delaying the unlawful detainer trial for nearly one month and delayed a final ruling in another civil litigation for nearly two months. Ultimately, the plaintiff in the unlawful detainer case obtained a judgment of approximately $100,000 against Shlaimoun and his wife, Oussha Jensen Shlaimoun. The litigant in the second case obtained a statement of decision of approximately $2,600,000, inclusive of $1,000,000 in punitive damages. Shlaimoun was found liable for fraud and his conduct was so egregious that the state Court issued punitive damages in the amount of $1,000,000. 

On August 1, 2017 at 10:00 a.m., the two creditors awarded judgments appeared in a California courtroom, bringing a Rule 4007(c) motion for an extension of time to file a dischargeability complaint. The creditors were seeking to stop Shlaimoun from discharging the judgment debts as part of his bankruptcy case. 
  
The unlawful detainer action was based on a residential lease agreement for a 9,300 square foot Irvine, California, home Shlaimoun and his wife were renting for $18,500 a month. According to court documents filed in the case, the unlawful detainer plaintiff potentially has a non-dischargeable claim based on the Shlaimoun's “fraudulent and malicious conduct in relation to his unlawful retention of the property far beyond his lawful ability to occupy it. In total, Shlaimoun failed to pay over 6 months of rent on an $18,500 per month high-end property.” Shlaimoun repeatedly claimed he had a "Lease Extension and Option Agreement" which allowed him to stay in the property rent-free while simultaneously providing him with an "option" to purchase the property for $2,000,000 under fair market value. Shlaimoun claimed the plaintiff's recently deceased husband signed the Option Agreement a few months prior to his death. 

Shlaimoun made no claim regarding the existence of the Option Agreement until a few weeks after he was notified of the husband's death. Evidence admitted during the civil trial strongly supported the plaintiff''s claim that the Option Agreement was shamelessly forged by the Shlaimoun. 

In fact, Shlaimoun's own handwriting expert changed his opinion during cross examination at trial and determined it was "inconclusive" whether the Option Agreement was forged. 

The plaintiff's expert testified that she was confident, to a 100% certainty, that the Option Agreement was forged. 

In addition, the plaintiff's computer forensics expert determined that all user files were wiped from the computer Shlaimoun testified he used to create the purported Option Agreement. 

Shlaimoun, realizing the unlawful detainer trial was going very badly for him, filed for bankruptcy on the eve of the 4th day of trial. 

That little legal maneuver allowed Shlaimoun and his various family members three additional weeks of rent-free residence in the Irvine home while the plaintiff obtained an eventual lift of the automatic bankruptcy stay. 

The unlawful detainer civil trial was set to resume on April 10, 2017, but Shlaimoun cleared out of the home the morning before trial started and provided no objection to a judgment against him.  

INTELLOGENCE INC., ITS KRYPTMINER AND "SECRET AND SECURE MINING LOCATIONS"...IN CAMARILLO?

Keep this in mind as you read on: this whole thing is bullshit, a scam cooked up by Zia Shlaimoun to separate you from your money!

Intellogence Inc. was formed on January 25, 2018 in Delaware, a state known as a haven for corporate secrecy. 

So how do I know Zia Shlaimoun's behind this company? 

Shalimoun's using the same Regus office address on the KryptMiner site (5000 Birch Street, West Tower 3000, Newport Beach, CA 92660) that he used for Goldstar Laboratories, and his wife, Oussha, processes KryptMiner sales proceeds via an email address long publicly associated with her homeopathic business (oussha@aol.com).
Shlaimoun originally used intellogence.com to promote the KryptMiner equipment, before establishing a dedicated KryptMiner site.

At first glance, the site looks legit—but I've already discovered (and debunked) at least two major flaws in its pitch.

First, a corporate brochure (available online at this link), makes this claim: 

At the heart of every KryptMiner PowerDrive is a PowerProcessor Card that features a super-efficient and abundantly powerful Field Programmable Gate Array (FPGA) number-crunching core that makes light work of Secure Hash Algorithm SHA- 256 computations. Having the capability to run up to a staggering 15THash/sec capacity, KryptMiner PowerDrive is not only the most powerful miner in its class, it is also the most efficient. Consuming a fraction the power of the competition, KryptMiner PowerDrive is powered by its own internal super-efficient power supply, making it light years ahead of the curve.

That claim is illustrated in the brochure with an image (excerpted above) that appears to co-brand Intellogence on an Opal Kelly ZEM5310 USB 3.0 integration module purportedly used in KryptMiner products.

Although the original Delaware corporate name (Intellogence) appears on the module, a spokesperson for Opal Kelly, who asked not to be publicly identified for this story, responded to my inquiry in an email this morning.

Denying any Opal Kelly association with either Zia Shlaimoun or KryptMiner, the spokesperson stated “We have never made a version of the ZEM5310 with the “Intellogence” writing on the silkscreen as indicated in that photo. The photo from our website materials has been modified.”

Continuing, the spokesperson appeared to knock the outsized claims made on behalf of Shlaimoun's KryptMiner: 

“For what it's worth, our products are FPGA-based modules. The ZEM5310 product is a rather low- to mid-range device. Many many years ago, it may have been appropriate for crypto mining at a small scale, but the industry has gotten much more advanced. To my knowledge, everyone doing serious mining work has moved on to ASICs for this work. If they were to use FPGAs, they would be using much higher-end devices than what we put on the ZEM5310.” 

In addition, KryptMiner is promoting mining centers on its site, describing them “a unique business opportunity to a select group of professionals who are interested in mining Crypto-currency and wish to participate in our first KryptMiner Center operation.”

Claiming the “KryptMiner Centers will be set up at secret and secure locations around the World”, the bumbling Shlaimoun uses a picture of what could just be a generic commercial building, except Shlaimoun reveals the building's address!

How long do you think it took me to find the real building and determine that it's (1) vacant and (2) not suitable for a cryptocurrency mining center?

If you answered 40 minutes, you'd be correct!




First, the building shown above is located at 4010 Adolfo Road in Camarillo, California.


It's currently available for lease, hardly “ready to start mining by March 1, 2018.”

More on this as the story develops.

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