Investors Suing Private Make New Allegations

CARSON CITY, Nev. — The legal battle over the control of Private Media Group continues to offer eye-popping allegations in court filings.

On Friday, a group of Private Media Group shareholders, led by Consipio Holding BV and former CEO Ilan Bunimovitz, filed a brief with the Nevada Supreme Court alleging that since the company's court-appointed receivership took hold nearly two weeks ago the company has been awash in scandal.

Among the allegations, Private CEO Berth Milton was said to have removed $24,000 in Private funds from company bank accounts without the receivership's consent and refused the receiver's entry into the office's building on the chief executive's orders.

In addition, Milton, according to an opposition to Private's emergency stay of order appointing a receiver, "attempted to transfer the valuable Internet domain name 'Private.com' from the corporation's name into his own name without the receiver's knowledge or consent."

But Private spokeswoman Leslie Amadio told XBIZ that the allegations that surfaced Friday are "unfounded and not true."

" First and foremost, Berth Milton does not have the power to sign for bank transfers or trademarks," Amadio said. "The money which was paid to Berth by accounting was to cover his normal salary that was due to him.

"In regards to the domain name, per a confirmed statement from an employee that manages Private's domain names, no such act or action was ever taken by Berth Milton in an attempt to 'transfer the valuable Internet domain name 'Private.com' from the corporation's name into his own name.'"

Last month, a Clark County, Nev., judge ordered a receiver to take control of all company's assets. Eric Johnson, a Private director and CEO of Private division Sureflix, was tapped for the slot.

That ruling is being challenged by Private's management at the Nevada Supreme Court.

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