By Tom Winnifrith, The Sheriff of AIM | Sunday 18 October 2015
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.
It goes without saying that there live execution of insolvent AIM listed POS Golden Saint Resources (GSR) via a crowd funded debt death spiral is not going well. The past 24 hours has seen another £0 raised meaning that on day nine net proceeds are still MINUS £1938.50. But an eagle eyed reader has flagged up a weekend change, as CrowdforAngels tries to cover up how investors are being spoofed.
This website is FCA regulated and the appeal for money is therefore termed a “financial promotion” which must show balance. So one would expect it to mention how Golden Saint is technically insolvent, burning cash and does not even have the cash to renew its licenses. But none of this is mentioned. Instead there is quite simply a stack of glowing PR puffery. Financial promotions must be balanced this is patently not.
If someone was daft enough to invest in Golden Saint on the basis of this utterly misleading financial promotion one would have thought that they would have a very strong claim against Crowdforangels on this matter when they lost all their money. Only a complete imbecile of a Compliance Officer would have signed this off …step forward Northern slum refugee and otherwise totally unemployable POS Richard “Gollum” Gill.
But it gets worse. Until yesterday registered users of the website could see the identities of those who had subscribed. And as we revealed £800 of the £1100 pledged to date had come from employees of CrowdforAngels (the worst performing crowd funding platform out there – see HERE) and just £300 from two mug punters.
However an eagle eyed spotter has now flagged up that this feature has been removed. That means that any potential new investor might be spoofed into thinking that real monies have been raised when in fact the vast bulk of what has been raised to date has merely been employees of CrowdforAngels reinvesting a small portion of their salaries into spoofing others.
This begs the question: does crowdforangels make a practice of spoofing external investors into backing fundings by its employees showing a rapid early uptake? Quite possibly management at Golden Saint could now subscribe anonymously to further the spoof. Were this an AIM placing that would need to be declared to potential investors? Here the only declaration would come after others had been spoofed into participating.
The sooner that the FCA orders a complete investigation into the lamentable compliance failings and culture of spoofing at crowdforangels the better something that would undoubtedly see Gollum handed a black bag and forced to head back to the Northern slums to forage in the trash cans for a meal of dead rat or pigeon.
Meanwhile Golden Saint is toast whatever happens. The target price for its shares remains 0p.
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