[PLNI]: Plasticon International, Inc. admits to the filing of material false and misleading financial statements with the SEC for the 2005 10-KSB

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From the Proxy Statement issued by Plasticon International, Inc. (PLNI) for the Annual Shareholders Meeting scheduled for March 16, 2007. LexReal is a wholly owned company of PLNI CEO James N. Turek, Sr.

There is more to the story. Not only did PLNI borrow almost a million dollars in 2005 and fail to include the debt in its audited 2005 financial statements filed with the SEC, but the cash received from this loan was received NOT by PLNI, but by a wholly owned company of PLNI CEO Turek.

Yes, that is correct,

PLNI did not receive the $720,000 in cash from the loan, it went to CEO Turek's private company.

In addition, due to the debt being called by the lenders, PLNI was required to issue an additional 281 million PLNI shares of common stock as a penalty.



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"During the fourth quarter 2006, the Company identified $720,000 in term debt that was incurred in 2005. The funds from the borrowings were deposited with LexReal. The loans were recorded with a corresponding offset to loans due to LexReal The loans have been called, requiring the Company to provide 281,371,888 of common shares to terminate the notes. On October 29, 2006, the 270,296,888 common shares were issued at a cost of $162,178. The balance of 11,111,000 will be issued inQ-1 2007 and will be booked as subscribed shares in Q-4 2006. The Company is in the process of investigating the impact on prior year's financial statements and will make the necessary entries in completing the 2006 year-end accounting."





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