By Tom Winnifrith, The Sheriff of AIM | Monday 20 February 2017
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
The way that shareholders' cash was pissed away on corporate jollies & semi clad young ladies by the former board of Teathers Financial (TEA) has already been documented fully here. But documents have now fallen into my possession, here at Winnileaks, which ask even bigger questions about FD Nilesh Jagatia who is pro tem, still FD at AIM-listed Inspirit (INSP) and Octagonal (OCT). After this bombshell I wonder for how long.
All staff at Teathers had a strict policy on expenses. They were each issued with a FairFx pre-paid card on which all corporate expenses were to be racked up and needed to provide details of those expenses. FD Nilesh was no exception. I have seen his FairFX card which includes bills of £3.75 and £47.47 at his local branch of Sainsbury's at South Woodford. Nilesh can you perhaps detail what corporate items you were purchasing then? Go on, what can you buy for the office at Sainsbury's for £3.75?
But Nilesh also had sole use of the corporate credit card and here we see that between 23 December 2014 and 10 June 2016 it was used to make ATM withdrawals of a grand total of £13,360. Of the 74 withdrawals, 51 are for £200, two for £300, and eleven for £100. The rest are for varying amounts.
I gather that Nilesh claims that all ATM withdrawals were for office expenses, even those on 23/12/15, 31/12/15, 23/12/14 and 29/12/14 all at £200 each. Really? Oddly, Jagatia has failed to provide any receipts at all to justify the need for this cash. Most office expenses are VAT reclaimable but only when a receipt is provided so it is a shame that Nilesh lost ALL his receipts.
And it was jolly handy that all these expenses came in such round numbers. How Teathers shareholders will be applauding how Nilesh was racking up expenses working so very hard on the days around Christmas.
Now you may think, on the basis of the above, that there is now some evidence that Nilesh Jagatia is nothing more than a common or garden thief who steals company cash and who is not a fit and proper person to be a director of an AIM listed company and that he should be suspended from Inspirit and Octagonal pending a police enquiry.
How wrong you would be. This is AIM so you must think again as only honourable men run AIM Companies
And thus I am sure that Nilesh Jagatia is an honourable man but just to check out how honourable he is I'd hope that the new management at Teathers hands over all of his expense claims and details of the ATM withdrawals to the City of London rozzers for a second opinion. Meanwhile it strikes me that Inspirit Energy and Octagonal are lucky to have an FD as honourable as Mr Jagatia.
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