Kreido Biofuels investigates possible improper issuance of shares connected to January PIPE

By Sheri Kasprzak

New York, Feb. 28 - Kreido Biofuels, Inc. is investigating the potentially improper issuance of stock related to a January private placement.

Kredio alleges that Louis Zehil, former partner of McGuire Woods, the law firm that represented Kreido in the offering, left off restrictive legends on shares purchased by accounts controlled by Zehil.

Kreido said in a statement released Wednesday that 56,000 shares of the 1.5 million shares purchased by the Zehil-controlled accounts were sold improperly.

"The company learned today that the U.S. Securities and Exchange Commission has commenced an enforcement action against Mr. Zehil and has taken further action to prevent transfers from the two accounts," said the Kreido statement.

Earlier in February, Foothills Resources, Inc. and MMC Energy, Inc. both announced that they were also investigating similar allegations against Zehil.

Zehil has not returned calls requesting comment on the allegations.

Kreido develops renewable energy sources through its intensification technology. The company is based in Camarillo, Calif.

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