BTU Ventures, Inc. and BTU Industries Holdings (USA), Inc.: "...Engaged in Misrepresentation Under Massachusetts Law"

More excerpts from Defendant, Martin Betancourt's Renewed Memorandum of Law in Opposition to Motion to Dismiss Counterclaims/Third Party Complaint.  Something to keep in mind is that BTU's website for btuventures.com has disappeared within the last few weeks.

[Note: As discussed elsewhere in this blog the trial court judge denied, in its entirety, BTU's motion to dismiss Betancourt's counterclaims/third party complaint.  Also, excerpts have been reformatted for visual clarity.]

"DEFENDANTS ENGAGED IN MISREPRESENTATION UNDER MASSACHUSETTS LAW"

As pointed out in his counterclaim/third party complaint, BTU's own website contained falsehoods relative to its size, areas of expertise, scope of business, business practices, personnel etc.

In reliance on these falsehoods, Betancourt accepted a position with BTU only to learn that they were untrue and that BTU may have engaged and/or continued to engage in business practices that were potentially illegal under Massachusetts law and Federal law.

The statements cited by Betancourt in his counterclaim/third party complaint go the core of his decision to accept a position with BTU. There were material facts regarding the very makeup of BTU; its business model, personnel, and financial position.

• BTU and Al Mazeedi held itself out to the public and Betancourt as a billion dollar company with numerous employees with expertise in the energy industry and controlling stakes in eighteen power plants, when in reality, BTU was nothing more than a small company consisting of 10 employees most of which were administrative staff with little or no experience in the energy business. 
• It was as if BTU was akin to the Wizard of Oz; the great wizard was nothing more than an old man hiding behind a curtain.
• BTU made the same misrepresentations to the Department of Homeland Security when submitting a US Citizenship and Immigration Services (“USCIS”) I-129 form wherein, BTU claimed that it was a company with, not only $550 million of funds under management, but also $550 million of gross annual income as well as stakes in multiple power plants. 
• In reality, BTU was managing a fund that had at most $120 million in assets. 
• Additionally, and more importantly, BTU as a going concern was officially only generating $1.2 million of yearly revenue. This figure is nowhere close to the $550 million shown on the I-129 form.