Yesterday Dr BR Shetty, the founder of Finablr (FIN) and NMC (NMC) protested that he was the biggest victim of their collapse and was purer than the driven snow. Today another shocker from Finablr. It seems a billion dollars has gone up in smoke and it has only just noticed.
After all that has gone on at (now former) FTSE100 play NMC Health (NMC), which is now in administration and where shareholders face a potential 100% loss, and Finablr (FIN) which is also suspended and shareholders face wipe-out as well, Dr Shetty – the man apparently at the centre of the shambles – has finally spoken out in a co-Chairman’s statement from Finablr issued at 10.50am this morning. If we are to believe Dr Shetty, he is not so much the perpetrator of fraud against both companies but the victim. Heck let's set all up a vrowd funding site for him.
Given that fully-listed Finablr (FIN) is from the house of Shetty that gave us the now - or soon to be - defunct NMC Health (NMC), it is a surprise that Dr Shetty remains co-chairman having been forced out of the door at NMC amid a series of undisclosed share dealings and the subsequent discovery of undisclosed cheques, NMC being left on the hook for its suppliers loans and bank balances which did not match its accounts. And of course Finablr has been in a spot of bother already...
It was announced this morning that Ernst & Young resigned as auditor to fully listed (but suspended) Finablr (FIN), citing concerns arising out of recent events atht e Company and NMC Health plc [NMC]…..the Board of the Company, the adequacy of corporate governance concerns and the recent issues that have caused the Company to commission an independent review of the Company’s financial arrangements, including of related party transactions and on- and off-balance sheet debt”. Quite a list! It’s a shame that Ernst & Young (EY) has shut the stable door so long after the horse has bolted!
Yesterday I described the lack of liquidity which had led to fully-listed Finablr (FIN) being unable to provide certain payment processing services as sounding terminal. And of course, the company had just turned up a stack of dodgy cheques, the CEO had walked and an investigation which sounded like a full forensic had just been commissioned. Now we learn that the emergency Fat Lady has been called in and is warming up en route to the theatre as we speak.
You were warned and warned and warned again here on ShareProphets to get out of fully-listed Finablr (FIN) as it became clear to us that it was facing the same problems as NMC Health (NMC) which is already surely a zero and with which it shared much of the same senior management (until it was fired by NMC) and where accusations of fraud and theft now abound. Quite why the shares were not suspended weeks ago is a matter for our useless and not-fit-for-purpose FCA which, after all, is supposed to protect investors. This morning the shares were suspended, the CEO has walked, dodgy cheques have turned up and the company’s financial position is unclear (for that, read a zero for shareholders). It would be a mind-bending shock if it had not been so predictable, and it is a calamity.
You cannot say that myself and Nigel Somerville have not warned you repeatedly and so anyone still owning shares in Finablr (FIN) has only themselves – and folks like ShareSoc and the members of the deadwood press who effectively batted for this company by attacking & smearing bear raider Carson Block – for their losses. The IPO in May 2019 was at 175p. Today after a partial ‘fess up the shares are 9.97p. Ouch.
For starters, the scale of the fraud at NMC Health (NMC) is, as of last night, known to be c$3 billion. It might be more. Dr Shetty who set up and runs Finablr (FIN) is a total crook and that is one reason why the shares should be suspended at once. But there is another pressing issue for the world’s most inept regulators to consider...
Fully-listed Shetty vehicle and owner of Travelex which is surely in trouble from the panic of corona virus Finablr (FIN) has updated on the good Dr Shetty’s shares. But the update leaves far too many questions unanswered and the shares remain a stonking sell.
Having first landed on fully-listed Finablr at the back end of January when I asked if it was a house of cards at 95p, I have been supping at the ouzo ever since – and the shares are down again today to just 46.75p last seen. But the stock remains a slam-dunk sell – especially in the light of what has happened at fellow Shetty-inspired vehicle NMC Health (NMC). And then there is the cyber-attack at its Travelex operation….and coronavirus…..and the continued silence from the company.
Withshares in NMC health (NMC) – a soon-to-be-retired member of the illustrious FTSE100 – now suspended in the wake of a string of revelations over founder and now ex-co-chairman’s share dealing shenanigans, dodgy related party share guarantees which one assumes will haunt the company’s bank balance in due course and apparent discrepancies at the bank, Muddy Waters must be celebrating a seemingly total win. But what of fellow main-market play Finablr (FIN), where the warning signs are surely flashing red for similar revelations regarding the same people but as yet the company is remaining tight-lipped. That surely is a giant-sized Red Flag…
In the wake of the Shetty shareholdings shenanigans at fully listed NMC Health (NMC), shareholders in fellow Shetty vehicle Finablr (FIN) might be wondering if they are about to discover a similar nest of undisclosed pledges, transfers and sales as the result of alleged dealings by Shetty and the Bin Buttis. The last we had heard was nine days ago when we were told the company was reviewing the situation. Well, this morning came a statement re. Shareholding…….
Of course it is! Muddy Waters may be laughing all the way to the bank with reference to NMC Health (NMC), but it must be kicking itself in San Francisco for having missed out on fellow good Dr Shetty outfit Finablr (FIN). The last we heard from Finablr was a week ago when the company announced that, like NMC – which has now ‘fessed up at least in part – The Company has very recently been made aware of purported arrangements between Dr BR Shetty, His Excellency Saeed Mohamed Butti Mohamed Al Qebaisi and Khaleefa Butti Omair Yousif Al Muhairi which may be relevant to their respective interests in the Company's shares. With at least 56% of the company’s shares pledged and perhaps more if similar undisclosed arrangements to the ones at NMC have been made, there is surely an urgency for the board of Finablr to get to the bottom of this.
I have a question for Finablr (FIN). Last month we learnt that BRS Investment Holdings 1 Limited, which is controlled by Finablr’s Co-Chairman Dr Shetty and holds 56% of the stock, had pledged its entire holding to cover bank loans on 10 January 2020. Of course, this suggested that all is not well with regard to BRS’ coffers and it left me wondering if the whole show was a house of cards at 95p. Indeed, the announcement saw the stock plummet by 27%. With the stock down again, to 70p, it sure is windy out there.
The Times suggests that Muddy Waters may be kicking itself for not shorting both London-listed stocks from the stable of Dr Bavaguthu Raghuram Shetty. Whist its short on NMC Health (NMC) may be doing well enough, Shetty’s other vehicle – Finablr (FIN) has been having a torrid time, with the shares halving since December. Finablr has only been on the market since last May, but scratch the surface and there are many questions which look like Red Flags to me jumping out.
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