Complaint Review: Lynda Keeton-Cardno

FOUNDER OF ENERGY DRINK COMPANY CHARGED WITH TAX EVASION

LAS VEGAS - - The former CEO of a Nevada sports energy drink company, Xyience, Inc., has been indicted by the Federal Grand Jury on tax evasion charges, announced Greg Brower, United States Attorney for the District of Nevada.

Russell Pike, of Las Vegas, is charged with one count of Tax Evasion for failing to file a federal individual income tax return for 2006 and failing to pay taxes on over $6.9 million in income he earned in 2006. Pike is also charged with using nominees and a forward-dated stock sale agreement to conceal his true income from the IRS. Pike was arrested yesterday in Las Vegas and is scheduled to appear in U.S. District Court at 3:00 p.m. today before U.S. Magistrate Judge Peggy A. Leen for an initial appearance and arraignment.

Pike founded Xyience, Inc., which manufactured, marketed and sold sports energy drinks, most notably, Xenergy, which was sold in over 45, 000 stores throughout the United States. The Indictment alleges that upon the inception of Xyience in 2004, Pike received at least 12 million shares of Xyience stock. During 2006, Pike sold over 4.4 million shares of his Xyience stock for approximately $6.9 million. This includes a sale on about November 2, 2006, in which Pike sold over 3 million shares of Xyience stock to an investor for approximately $5 million. In early 2007, Pike requested that the investor change the date of the stock purchase agreement from 2006 to 2007, so that Pike could avoid paying taxes for 2006.

In June 2006, Pike listed his income as $100, 000 plus on a brokerage account application. In July 2007, Pike listed his assets as $27 million and his liabilities as $2 million on a life insurance application. In September and November 2006, Pike purchased a condominium in Las Vegas which was titled in the name of a nominee, made payments on a 2005 Lexus SUV that was held in the name of a nominee, and purchased a 2007 Mercedes Benz for $151, 614.

If convicted, Pike faces up to five years in prison and a $250, 000 fine.

The case is being investigated by Internal Revenue Service Criminal Investigation and is being prosecuted by Assistant United States Attorney Nicholas D. Dickinson.

The public is reminded that a Indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

Information for those doing a due diligence check on Russell Craig Pike of IBG (Internet Business Group) formerly of XYIENCE. Currently recruiting employees in Dallas TX for a company there. Letter from the STATE OF CALIFORNIA BUSINESS, TRANSPORTATION AND HOUSING AGENCY DEPARTMENT OF CORPORATIONS DESIST AND REFRAIN ORDER (~for violations of sections 25110 and 25401 of the Corporations Code) The California Corporations Commissioner finds that Russell Craig Pike  => (link http://www.corp.ca.gov/ENF/pdf/2007/xyience.pdf) _________________________________________________________ 

EXCERPT 1. From the STATE OF CALIFORNIA BUSINESS, TRANSPORTATION AND HOUSING AGENCY DEPARTMENT OF CORPORATIONS DESIST AND REFRAIN ORDER pg 3 lines 7-11 

"On July 9, 1997, Pike was indicted in u.s. District Court for the District of Nevada on counts of bank fraud, money laundering and aiding and abetting, in connection with his operation of Advanced Cart Technology, Inc. On October 13, 1998, Pike entered a guilty plea to the charge of money laundering. On June 4, 1999, Pike was sentnced to 59 months in a federal prison, three years of supervised release and was ordered to pay restitution of$2,367,146.00." _________________________________________________________ 

EXCERPT 2. From the STATE OF CALIFORNIA BUSINESS, TRANSPORTATION AND HOUSING AGENCY DEPARTMENT OF CORPORATIONS DESIST AND REFRAIN ORDER pg 2 lines 23-28

"In connection with the offers and sales of securities, Xyience and Pike omitted to disclose to investors that: On February 10, 1998, the Mirage Casino-Hotel ("Mirage") filed a lawsuit in Nevada state court, Eighth Judicial District for the County of Clark, against Pike alleging that over a two day period in November 1995 Pike wrote three checks totaling $300,000.00, made payable to Mirage, from an account with insufficient funds. Pike failed to respond to Mirage's lawsuit which led to the Nevada state court entering a default judgment against him on July 7, 1998 and ordering Pike to repay Mirage $300,000.00 plus interest."
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EXCERPT 3. From the STATE OF CALIFORNIA BUSINESS, TRANSPORTATION AND HOUSING AGENCY DEPARTMENT OF CORPORATIONS DESIST AND REFRAIN ORDER pg 1 lines 12-28 pg 2 1-20 

"The California Corporations Commissioner finds that: 1. At all relevant times, Russell Craig Pike ("Pike") was the control person, President, Chief Executive Officer and Chairman ofthe Board of Xyience Incorporated ('Xyience"), a Nevada corporation formed on May 25,2004. Xyience, a nutrition supplement company, maintains a business address at 10650 West Charleston Blvd., Suite 110, Las Vegas, Nevada 89135 and a Web site at www.xyience.com. 2. Beginning in or about 2005, Pike and Xyience offered and sold securities, in the form of Xyience common stock, in the State of California. 3. Through general solicitations in the form of an investor recruitment network, Pike and Xyience offered or sold at least 1,541,667 shares ofXyience common stock to raise in excess of $2,100,000.00 from California residents. 4. The purported purpose of the common stock offering was to fund the growth and on-going operations of Xyience 5. These securities were offered and sold in this state in issuer transactions. The Department of Corporations has not issued a permit or other form of qualification authorizing any person to offer or sell these securities in this state. 6. In connection with the offers and sales of securities, Pike and Xyience misrepresented to investors: a. In Xyience's Private Placement Memorandum dated July 17,2006, that" ... in the course of business (Xyience] has legal issues that arise; management does not believe there are any material litigation to be concerned with." In fact, on June 22, 2006, Xyience shareholders GIG Enterprises, L.L.C. and Maurice Owens filed a lawsuit in Nevada state court, Eighth Judicial District for the County of Clark, alleging that Pike, Xyience and the Pike Family Trust engaged in civil racketeering, breach of contract for the sale of stock, breach of the covenant of good faith and fair dealing, and requested the appointment of a receiver over Xyience. b. In Xyience's Private Placement Memoranda dated October to, 2005, January 1,2006, February 10,2006, July 17,2006 and October 20,2006, that Pike was a successful entrepreneur, founding Advanced Cart Technology, Inc. and All Creative Technologies which "generated millions in revenue prior to Russell [pike] selling the business in the 90's." In fact, Advanced Cart Technology, Inc. filed for bankruptcy on June 17, 1996 in U.S.Bankruptcy Court for the District of Nevada, which was discharged on August 21, 1998." ____________________________________________________________ 

More information can be found by doing a Google Search (disclaimer - I cannot vouch for the validity or lack thereof in all the results to be found. It is user discretion - however you can find official court records in these searches.) Use the words "Russell Craig Pike" and "Russell C Pike" with quotes and for more information add to the words => XYIENCE, Advanced Cart Technology, or Jennifer Price (For more info - hint - background check) (If you leave out his middle name you will not get the real deal) Good luck and Always do your due diligence before any business deal.