Yao Kexuan 4
4 · China Armco Metals, Inc. · Filed Feb 29, 2012
Insider Transaction Report
Form 4
Yao Kexuan
DirectorChief Executive Officer10% Owner
Transactions
- Other
Common Stock
2010-06-29−1,300,000→ 4,514,997 total
Footnotes (2)
- [F1]Mr. Yao entered into a Structured Transaction Agreement, dated June 11, 2010, with Crisnic Fund, SA. ("Crisnic Fund"). In connection with that agreement, Mr. Yao pledged 1.3 million shares of China Armco Metals, Inc. ("China Armco") stock as collateral. After lengthy jurisdictional proceedings in which Crisnic Fund unsuccessfully disputed the jurisdiction of the United States District Court, Mr. Yao acquired discovery in litigation against Crisnic Fund. Crisnic Fund's brokerage account statements reflected that Crisnic Fund sold all 1.3 million shares of Mr. Yao's China Armco stock pledged as collateral, without notice to Mr. Yao. The dates of Crisnic Fund's sales ranged from June 29, 2010 through July 8, 2010. The net proceeds of such sales totaled $4,113,064.29. (FN1 Continued in FN2)
- [F2]While Crisnic Fund did, on July 27, 2010, send Mr. Yao $1 million in purported loan proceeds, Crisnic Fund did so only after it had already sold Mr. Yao's 1.3 million shares pledged as collateral. Mr. Yao is currently in litigation to recover all 1.3 million shares of his China Armco stock and damages, including punitive damages for fraud.