FreeStar alleges stock certificates were stolen in connection with April 2006 PIPE

By Sheri Kasprzak

New York, March 16 - FreeStar Technology Corp. alleges that stock certificates issued in an April 2006 private placement were stolen.

The company attempted to terminate its stock purchase agreement with K2 Svensk Kredit & Finans AB. K2 acknowledged the termination, according to an 8-K filed Friday with the Securities and Exchange Commission by FreeStar, but said that K2 was controlled by Soren Moberg and that Moberg possessed the stock certificates. FreeStar, the 8-K said, has reported to the SEC that the certificates were stolen by Moberg.

"In addition, FreeStar, through its counsel, Corrigan & Morris LLP, has filed an ex-parte application with the Federal District Court in Nevada seeking a temporary and preliminary injunction forbidding K2, Soren Moberg, Moberge Group, Magnus Erneving and [First American Stock Transfer] from selling or otherwise transferring the stolen stock certificates," the 8-K said.

FreeStar is seeking $5 million in punitive damages against K2, Moberg, Moberge Group and Erneving Magnus.

In the placement, which closed April 27, 2006, FreeStar issued 25 million units of one share and one warrant for proceeds of $10 million.

Dublin, Ireland-based FreeStar develops payment-processing technologies.

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