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December 21, 2007

Attorney General's Office Statement: Pigeon King International, Inc.

Friday, December 21, 2007 &
Thursday, December 13, 2007

Statement of the Iowa Attorney General's Office, Dec. 21, 2007:

Pigeon King International provided a reply on Dec. 19, 2007, to the Iowa Attorney General’s Civil Investigative Demand.  The Farm Division of the Attorney General’s Office is reviewing the materials submitted by Pigeon King International.

Statement of the Iowa Attorney General’s Office, Dec. 13, 2007:

We have been asked about the validity and legality of solicitations for major investments in pigeon-breeding operations. We are investigating this matter. We believe that potential investors/buyers should be very cautious and examine the situation very carefully -- especially the question of whether there is a realistic and independent market for pigeons now and in the future.

Pigeon King International, Inc., based in Waterloo, Ontario, invites investors/buyers to invest as much as $50,000 to $100,000 or more to buy hundreds of pigeon breeding pairs.

Pigeon King International has informed our office that as of Nov. 13 they would not solicit more Iowa investors, but we still warn any Iowan to be extremely cautious if they face an opportunity to make such an investment. Furthermore, Pigeon King has stated to our office that it will continue to make all payments required by existing contracts with Iowans.

The Farm Division of the Iowa Attorney General’s Office has issued a formal “Civil Investigative Demand” or CID to Pigeon King International, Inc., and Arlan Galbraith, President and CEO of the company. The CID, which was issued in November, asks Pigeon King and Galbraith to provide various detailed information about their operation and plans for the future.

The Civil Investigative Demand states the Attorney General’s Office has concerns that Pigeon King International business practices may be violating the Iowa Consumer Fraud Act and the Iowa Business Opportunities Law, including “misleading consumers regarding the true viability of establishing several large pigeon processing plants within a time frame that would allow the business opportunity marketed by the respondent [Pigeon King International] to have a legitimate independent business purpose” other than “providing inventory for new growers in furtherance of a ‘Ponzi’ type of investment scheme.”

To comply with the Civil Investigative Demand (CID), responses must be made under oath and received by the Attorney General’s Office by Dec. 19, 2007.

A Civil Investigative Demand can be enforced by Iowa courts, and the State of Iowa can seek a court injunction if a respondent refuses to comply with a CID.


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