CPSD's Support for Alter Ego Allegations

CPSD alleges Bucci was an alter ego of ACI and is an alter ego of Titan, and should therefore be held jointly and severally liable with them for violations of pertinent statutes and regulations. CPSD asserts that Bucci, as the sole shareholder of ACI, took unauthorized loans from ACI, failed to hold regular board meetings, to obtain board authority to issue stock, and to maintain corporate records under General Order 28-A, and used the same attorney as ACI. CPSD alleges Bucci, as Chief Executive Officer (CEO) and owner of the vast majority of shares in Titan, repeated much of the same behavior he had exhibited as ACI's CEO and sole shareholder.

CPSD's investigation indicates that ACI lent Bucci $420,945. (Declaration of James Martinec in Support of Ex Parte Application for Appointment of Receiver or Alternatively for Temporary Restraining Order, p. 2.) An attachment to that declaration, ACI's September 30, 1998 balance sheet, lists shareholder loans as approximately $344,000.