Appointment of a Qyral Receiver has been requested as part of ongoing proceedings between Hanieh Sigari and Darius Banasik.

Claiming third-party service providers had declined to comply with a granted Temporary Restraining Order because it was “not specific enough”, Sigari filed a motion requesting the TRO be modified on April 5th.

The purpose of this application is to expand the T.R.O. to expressly direct third party service providers to return control and/or funds in their possession to the company so that the company can continue to operate.

This action is required because the service providers (who are now Nominal Defendants in the First Amended Verified Complaint) have declined to comply with the current T.R.O. because it is not specific enough on the issue of control/ownership.

In an accompanying declaration in support of her motion, Sigari further asserted Qyral

will fail unless immediate action is taken to preserve its ability to pay vendors and consultants using the funds (hundreds of thousands of dollars) currently frozen with several third-party providers.

Over 800 orders have not shipped because the pharmacies have not been paid due to [Banasik]’s misappropriation of funds and misappropriation of control. [Banasik] is now blaming me for the failure of the company to fill orders.

This is harmful because we have to issue refunds in the tens of thousands of dollars or more, and we are receiving numerous complaints and negative online reviews from customers.

Employees have not been paid because [Banasik] initially drained the bank account and now the third parties holding funds are freezing the funds needed to pay employees, vendors, and consultants.

The third parties collectively hold an estimated $450,000.00 that we desperately need to make payroll, commission payments, and payments to vendors that collectively total at least $350,000.00.

Sigari claims, to date, Banasik (right) has misappropriated just shy of $300,000 from various Qyral related accounts.

[Banasik] keeps bringing up a global settlement every time we raise the subject of restoration of the accounts and company– note the taunting texts saying essentially “good luck with Shopify chasing you for that $200,000!”

His intention appears to be to escape this situation by holding the company hostage and capitulating me with concessions.

I am not prepared to do that or negotiate with someone who is basically holding a gun to my head.

The court scheduled a hearing on Sigari’s motion for April 9th. At the hearing the court took the matter under submission.

No changes to the existing TRO were approved, and Banasik was ordered to file a motion to appoint a Receiver by noon on April 10th.

Later that same day, April 9th still, a signed stipulation from both parties was filed. The stipulation authorized creation of an “escrow account for temporary holding pending the possible appointment of a Receiver”.

The stipulation was granted shortly after it was filed.

As directed to, on April 10th Banasik filed an emergency ex-parte motion requesting appointment of a Qyral Receiver.

Appointment of a receiver in this case is more than appropriate and is urgently needed in this case.

While the parties are in disagreement about quite a few facts in this case, one fact is indisputable: Qyral is at risk of being diminished, lost, or squandered through their disagreements concerning ownership and management of the company.

Absent appointment of a receiver to assume control over Qyral’s assets and management, the parties will suffer irreparable harm.

Indeed, Sigari herself has admitted as much, in her most recently filed Ex Parte Application To Modify Temporary Restraining Order in this case.

There’s a lot of talk of financials in an accompanying declaration from Banasik, alleging multiple non-business related expenses charged to Qyral.

There’s also a disturbing allegation of fraud in obtaining prescriptions through Qyral.

I am informed and believe that Sigari instructed one of her personal friends, Emily Atwell, who did not qualify for prescription grade injectable weight loss medication with Qyral, to add dumbbells to Ms. Atwell’s pants to make Ms. Atwell appear heavier than she was, and to take a picture of herself on a scale, with the added weight, and send the fraudulent pictures to falsely demonstrate to physicians that she was overweight and needed to inject herself with Qyral’s weight loss products.

Sigari talked about this scheme to customer service staff at Qyral, and posted a picture of Ms. Atwell, which Ms. Atwell apparently sent her, showing Ms. Atwell hiding the weights in her pants.

Banasik concludes his case for a Receiver by stating;

For all of the aforementioned reasons, I believe that unless a receiver is appointed, and Sigari remains in ostensible operational control (particularly the finances of the company), Qyral will cease operations.

Sigari has been directed to file a response to Banasik’s Receiver motion by April 11th. Stay tuned for an update over the weekend.

 

Update 13th April 2024 – A Qyral Receiver was appointed by court order on April 12th.