By Tom Winnifrith, The Sheriff of AIM | Wednesday 5 July 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.
Of course Cantor Fitzgerald is so large that it could afford to compensate all of the 70 or more investors working with Peter Petyt and this website to try to recover losses from the African Potash (AFPO) fraud. But the publicity of a case would be hugely embarrassing so sordid would be the revelations. Anyhow just 10 days more sweating for Cantor...there is an update from Petyt.
Cantor was the Nomad that signed off on statements made by Potash that were just untrue but sent the shares surging allowing it to get ab rescue placing away. The Most notable of these was the January 6 2016 claim that Potash would within a month be getting $10 million from a sale backed by a Letter of Credit from an International Bank. Unfortunately there was no LOC. CEO Lyin Chris Cleverley just made that up.
A responsible Nomad would have asked to see the signed LOC. Cantor cannot have seen the signed LOC as it did not exist. Thus it would appear that it was negligent in allowing lyin' Chris to tell lies via RNS statements on more than one occasion.
Its case is made harder to defend because the bankster who signed off on this was publicity shy free speech denier Stuart Dickson (nee Dick). When Lyin Chris and his senior NED Lord Peter Hain of Sleaze sent me a fascists lawyers letter demanding I pay it cash and never write again I told them "See you bitchez in Court!" and made it clear that Cantor would be roped into an early disclosure process. Within days of that happening Dickson had been handed a black bag and a P45. So he would be an interesting witness for the defence should Cantor be sued and this come to court.
So how long will Cantor have to sweat about this potentially appalling publicity? Not long now. Petyt has emailed all the potential claimants in his group saying that:
Just a quick update for you. Capital Law have now sent the papers on this case to Counsel for a view on merits and feedback is expected within the next 10 days. If Counsel is positive on the merits, I anticipate that Capital will then submit a formal application for funding to their investment committee. I will issue a further update once we have heard back from Counsel.
In other words if the Barrister things this is a goer then it is all systems go. Never before has a Nomad been sued in this way for an AIM fraud and that means we are in uncharted waters but it would be a fantastic precedent were such a case to go ahead. Next up for Petyt and his team would be Cloudtag (CTAG) and the Nomad there which signed off on a stack of lies, that is to say Cairn Financial. After that? Who knows?
I will keep you posted.
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