Mantria Update #14

The following article concerning Mantria was taken from Philadelphia Inquirer on March 24, 2010.


Another twist in alleged Mantria fraud case
By Harold Brubaker

Inquirer Staff Writer

Here's an unusual twist in a case of alleged investment fraud: The supposed victims want to keep the suspect business alive.

Investors in Mantria Corp., founded by Manayunk resident Troy Wragg, have formed a group to try to salvage the company's operations in Tennessee, according to court filings this week.

Mantria's assets were frozen after the Securities and Exchange Commission in November accused Wragg and others in a $30 million "green" Ponzi scheme in a civil lawsuit filed in Denver.

The investors seeking control of assets remain convinced that Mantria's most recent business initiative, a biorefinery that turns waste into a charcoal-like substance - called biochar - that can sequester carbon in soil, is for real and has a bright future.

The move by Mantria investors is just one of several that is making the case against Wragg - who was ordered to appear in federal court in Denver Friday to face contempt charges - and his codefendants increasingly complex.

In addition to a firm that Mantria investors would like to work with to develop the biochar business, Wragg's sister, Tisa Dixson, has helped form a competitor, Carbon Black Global L.L.C., to commercialize the technology central to Mantria's plans.

As to the transfer of Mantria assets to a new investor-owned company, Kurt L. Gottschall, assistant regional director for the SEC in Denver, said yesterday in an interview that only a federal judge has the power to release those assets.

If the investor group or someone else asked for that release in court, Gottschall told the group, "we can't agree to that at this time."

More than a dozen securities offerings were conducted by Mantria and related entities, Gottschall said. Some of the money from those offerings went to the assets Mantria investors would like to take over. Other offerings went to other "purported business ventures," he said.

"We've got to marshal assets for all of the Mantria investors, not just those that want to carry this on as a business," he said, referring to the biochar venture.

In court documents seeking a contempt-of-court order, the SEC alleged that Wragg, 28, helped to form a new company, Enantios Inc., that aimed to take over frozen Mantria assets and that he signed a contract transferring frozen assets worth $250,000.

In January, Wragg was negotiating the sale of biochar on behalf of "our company, Enantios Inc.," according to a document filed by the SEC.

Reached yesterday by telephone, Wragg said he had no comment beyond the court filings. His lawyer, Steven W. McDonald of Berliner McDonald P.C. in Greenwood Village, Colo., did not return a call seeking comment.

In his defense against the contempt charges, Wragg denied that he had any involvement in the formation of Enantios and said he had no ownership interest in the company, which was formed in December.

He said he was coerced into signing a contract transferring the equipment to two men owed rent on property in Tennessee.

Meanwhile, some Mantria investors are unshaken in their belief in Wragg and his business partner, Amanda Knorr.

They "put together a company that, had it been left alone, would have exceeded all investors expectations and provided countless new jobs in an industry that would have had a huge positive effect on both our environment and country," Bruce L. Yates, who invested $1.9 million in Mantria, said in an affidavit dated March 19.




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Contact staff writer Harold Brubaker at 215-854-4651 or hbrubaker@phillynews.com.





CURRENTLY SHOWING ON PHILLY.COM

Mantria Update #13

Parties interested in the BioChar technology continue their Legal Maneuvering. Mantria Investors have more reason for hope than at the beginning of the year. There appears to be some marketing appeal. Investors are encouraged to be patient as it may take some time for this technology to be reorganized.

Mantria Update #12

In order to recoup Mantria investment funds, some Mantria investors are working with Voiparty. (www.Voiparty.com) It costs $290 (one time fee) to get set up and it is simple to participate. Let me know if you have any questions. (bgreinke@live.com)

Mantria Update #11

The Committee of Mantria Investors has been developing some business plans to keep our technology moving forward. If you have not received Merril Rowe's email on ~February 21, please contact me. (bgreinke@live.com)