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By Tom Winnifrith | Monday 9 July 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.
At the last AGM of Naibu (NBU) before it was booted off the AIM casino I attended its AGM, held at the offices of its Nomad Daniel Stewart, and accused the company of fraud. Only the NEDs were present - Chinese executive directors failed to show. As I asked about a loan to the CEO’s mum that had not been repaid, the NEDs said they were unaware of this. I pointed out where the loan was referenced in the annual report and the NEDs said they would go away and investigate. They did not. Only when they stopped getting paid did these useless upper class twits start to ask questions. Wind forward to today and it is time to shift the blame.
The NEDS have now secured litigation funding from Therium Group and appointed litigation specialists PGB Gitlin Baker and the company has issued High Court proceedings for negligence against Pinsent Masons LLP, who acted as legal advisers to Naibu at the time of its flotation, and Daniel Stewart & Company PLC, the Nomad on IPO and until it lost its Nomad license.
So now they have the cash backing from a credible source to attack. Great news for Naibu shareholders, but it is not so good for ex-AIM listed Daniel Stewart or Pinsents. Both firms will have Professional Indemnity insurance in place but such policies do not always pay out if the firm was negligent. Since I was able to establish that Naibu CEO Houyan Lin had a criminal record as long as your arm why did Pinsents and Daniel Stewart fail to do so?
The useless NEDS are also fighting on a second front. The NEDS have won a court skirmish in Hong Kong and have requested the Chinese courts to issue an order for new Naibu China chops (official stamps) to be issued, and to put the proposed changes to the officers of Naibu China, as detailed in the NED's announcement of 22 June 2017, into effect. We are told: “Once this has been completed, the Board will be in a position to approach Naibu China's bankers and other relevant authorities in China to obtain Naibu China's records and bank statements. This will enable the Board to investigate further what has happened in China, and to determine what assets, if any, remain in Naibu China, where the Company's cash has been dissipated, and what additional action if any can be taken. “
The fact that Naibu itself uses the word dissipated tells you everything. All the Money’s Gone. But at least when that is confirmed the NEDs have resolved to pass the matter onto the Chinese Police.
But as Johnny Hon pointed out at UK Investor this is just half the scandal. Naibu would never in a million years got permission to float on AIM from the Chinese Authorities as it was so obviously a wrong ‘un. So instead folks like Pinsents and Daniel Stewart and the NEDS themselves created a structure to flow on AIM based in a UK offshore territory which nominally owned Naibu in China but in reality had no control over it or its money at all.
For the NEDs who helped circumvent Chinese rules to stop frauds floating overseas to now go back to the Chinese screaming fraud is, frankly, rich.
Naturally I hope that Daniel Stewart – which sent me a fascist lawyers letter to try to gag me at the instigation of Rob Terry and morally degenerate scumbag lawyers Pinsents – which authorised a dirty tricks campaign against myself and Dan Levi on behalf of its bent client Sefton - are taken to the cleaners and exposed for they have sinned. But please do not view Naibu’s NEDs as being long term angels for they are merely sinners who have repented. For that at least we should be grateful.
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