Pathfinder Minerals: the Tory MP, the CEO, the hapless Nomad and the allegations of mortgage fraud

By Tom Winnifrith | Sunday 6 May 2018

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.

Nick Trew, the CEO of Pathfinder Minerals (PFP) is currently attempting to fight off an EGM request to oust him and Toff Tory MP Sir Henry Bellingham of 3DM infamy from the board. Their record of non delivery should be enough to see them sent packing but another allegation has now been made which - if proven - would make their dismissal a black and white issue. Nomad WH Ireland and AIM Regulation must investigate this at once.

The allegations come from a former board member and I have minuted notes of a meeting with a City adviser where they were made. I have confirmed the minutes are genuine. It concerns a placing that took place on 17 March 2016.

It is alleged that for Trew to participate in that placing he needed to remortgage his home but he was not drawing sufficient salary at the time (deferring the sum) as the company did not have the requisite funds to pay him.

It is claimed that in order to submit to the bank a statement showing that his net pay was being received in accordance with his reported salary at the time Trew made transfer from the company's accounts of the difference that he was not taking (due to insufficient funds) and then once it had been credited immediately returned the sum to the company's bank account.

The former director claims to have flagged these transactions up with the chairman, Sir Henry Bellingham MP, and also with the QE in charge of the account at WH Ireland, Mr Paul Shackleton - a man notorious for his role in floating China frauds when at Daniel Stewart. Shackleton has since moved to Arden Partners. But, it is alleged that no action was taken by either Bellend or Shackleton in response to this complaint.

If this allegation is true it would appear to be mortgage fraud and that would mean that even AIM Regulation would regard Trew as unfit to run a PLC. If this is true it would also raise big questions as to the conduct of Bellingham and Shackleton in turning a blind eye.

I am sure that Trew is an honourable man and would be keen to clear his name at once and stop such malicious suggestions from being spread. As for Sir Henry, he is a Tory MP and a pillar of the establishment and therefore his integrity is beyond question and he must be desperate to clear his name.

I hope, therefore, that Trew and Bellingham will agree to bring in in an independent third party to examine transactions on the Pathfinder bank account in February and March 2016 and his correspondence with his mortgage provider. If such a review clears Trew's name then he can fight the EGM request on its merits. If it does not, or if Trew refuses to allow a third party enquiry, there can be only one outcome as far as regime change is concerned.

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