Opinion ID: 4024287
Heading Depth: 4
Heading Rank: 1

Heading: Kristoforʹs Involvement in BSMI

Text: Kristofor was Vice President of BSMI and a member of the BSMI Board of Directors. He attended key internal BSMI meetings, participated in meetings where BSMI solicited investors, and made sales calls to potential investors off a call list circulated by Russell. Kristofor allowed his father to pose as him when addressing investors. At times, Kristofor was present when his father impersonated him on the phone. The BSMI business plan also contained material misstatements regarding Kristoforʹs past business, marketing, and mining experience. For example, the business plan stated that he (1) was an officer at First Choice Financial, another company owned by Bill, (2) had extensive mining experience, (3) was familiar with environmental issues and high‐tech mining equipment, (4) worked for a finance company in marketing and was an officer of the company, and (5) worked for a consulting company using his marketing expertise to develop nationwide offices. Kristofor reviewed and approved his biography before it was included in the business plan. Many of the statements about his background were false or inaccurate. For example, Kristoforʹs mining experience ‐9‐ was limited to the time he spent helping his father as a child at Alaska mines, where he ʺhelped with clean up,ʺ ʺhelped move the rocks,ʺ and ʺplay[ed] with [his] BB gun.ʺ Trial Tr. at 3315‐16. Moreover, he was not an officer of First Choice Financial and functioned at HFGI largely as an administrative assistant.