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Letter to the FCA: Robert Fielding CEO of Quindell is Guilty of Insider Dealing – please investigate

By Tom Winnifrith, The Sheriff of AIM | Tuesday 25 November 2014


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.


We already know that the FCA is investigating Rob Terry, Steve Scott and Laurence Moorse of Quindell for insider dealing – they are clearly guilty in that they sold millions of quid’s worth of shares knowing that join broker Canaccord had quit but without letting the market know that. But now I also accuse CEO Robert Fielding of insider dealing and wonder if this is why Canaccord quit on October 21st. I have written to the FCA (and cc’d in AIM Regulation as well as the chumps round at Cenkos) asking that the FCA widens the Quindell insider dealing enquiry to include Fielding.

On Friday 17th October Fielding announced that he had bought 17,707 shares at 141.1p. Less than two working days later Quindell announced via RNS at 7 AM on 21st October what it termed a major telematics deal in Canada. The fact that this was an RNS (not an RNS Reach) means that Quindell reckoned the news was price sensitive. The shares duly jumped. Surely when dealing on the Friday before the Tuesday Fielding knew this news was coming. If so, he is guilty of insider dealing.

Perhaps that was the straw that broke the Camel’s back for Canaccord? And that was what prompted it to quit as joint broker on the 21st? It would be good if the disgraced broker could explain an awful lot of things that have gone on (see HERE). But I digress, I have written to the FCA demanding that it widen the Quindell boardroom insider dealing investigation, as follows.

Dear Sirs.

I request that you widen the scope of the Quindell boardroom insider dealing investigation underway to include Mr Robert Fielding, CEO of the group and events taking place between 17 and 21 October 2014.

On 17 October Mr Fielding purchased 17,707 shares in Quindell at 141.1p

On 21 October at 7 AM Quindell announced what it termed a “major insurer 5 year contract win.” This was announced via RNS not RNS Reach so must be deemed to be price sensitive. The shares did jump sharply on the news.

As group CEO Mr Fielding must have known about this major contract win. He has insider knowledge. And he dealt in shares. 2+2 = 4 – that surely is insider dealing, a breach of the 2005 Market Abuse Directive. As such I urge you to widen the current investigation into the blatant insider dealing of Rob Terry, Steve Scott and Laurence Moorse to include the trades of Mr Fielding as well.

As ever, I remain,
Your Obedient Servant

 

Tom Winnifrith

Cc AIM Regulation

   

              

     

                                                                                


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More on QPP


Comments

8 comments

  1. Peter

    With respect you clearly have not read my work. As I covered this and a lot more,

    I think if you see what the City pros are saying they know who gets to chalk this up as a kill

    T

  2. I think Peter didn’t read the bit about booking overinflated spurious valuations (for example, himex purchase etc) as revenue. If i pay £2k for a £10 note, that don’t make it a £2k note! in Quindell’s case though they just book that as £1990 of income, because they paid 2k for it and they own it now so it must be worth 2k so lets put that on the balance sheet…kinda like the financial equivalent of perpetual motion…bunkum

  3. Peter

    Tom’s analysis doesn’t stop at highlighting worthless shelf companies bought. He shows how the worthless shelf companies have (apparently) been used to generate fictitious revenues and profits through undisclosed intercompany transactions. More crucially a large proportion of the “operating cash flow” that Quindell has reported has (apparently) been generated through sales of its own shares via these worthless shelf companies.

    That seems material to the ‘investment case’ to me.

  4. Jon

    But I have also highlighted the accrual issue with what I thought was some fairly groundbreaking stuff on Industrial deafness ( a 100% post Gotham issue). that will again bite QPP ( ir is already) as the cash is simply NOT coming in. It is bogus revenue. Pete seems to have overlooked all of that too

    t

  5. Tom

    As I said you’ve commented on Industrial deafness, but let’s be honest…groundbreaking? You will realize the mistakes in your assumptions when you read Exane’s report “GBP1-3bn deafness reserve strengthening at year-end”. I can forward you a copy if necessary.

    My former comments are “lost”… So let me ask you again:

    You can write hundred of articles about expected GW write downs, but cash is what counts at the end.

    And here we are again, you are saying that QPP can’t pay salaries until year end?! That they are not able to pay suppliers. The D&B report you showed a while ago was not for QPP but for an inactive subsidiary. You write about well sourced information showing that NARS is on (fire) sale. Again not true. So where is the prove for your accusations?

    Be aware (and be assured that I’ll remind you): You’ll look pretty stupid if year end cash is (without funnies) above that of end of June,

  6. Peter

    I questioned QPP’s claims on ID in a way no-one else did – we will see who is correct.

    I agree GW writedowns not a cash issue but they would show that hundreds of millions had already been pissed away and would obliterate earnings. Not a good thing methinks.

    I did not say QPP could not pay salaries until the year end merely that it had moved paydate to inflate period end net cash position. I stand by my assertion that QPP is delaying supplier payments – that is based on chats with folks at the coal face.

    Year end cash without funnies? So you mean excluding: moving payroll, floggng shares issued to themselves t buy companies, pushing out payment terms, writing sod all new business in QLS in dec etc etc etc etc.

    We shall see

    as most folks with a brain now accept I have demonstrated clear fraud at QPP. There can only be 1 outcome

    T

  7. Tom

    I have not looked into your payroll story, but it is pretty obvious that any effect from delaying payments into the next month is a ONE TIME effect at the time you start with it, right?

    Are commentators above the “City pros” you mentioned before? That would be a nightmare for the city :-)

    Peter

  8. Tom

    I have not looked into your payroll story but it’s pretty obvious that a postponement of salaries into the following month will only have an effect in the month/quarter you introduce it, right!? QPP pays September in October, October in November and November in December… So what would be the effect exactly?

    The delayed supplier payments are based on chats with whom exactly? Is this what you claim to be investigative jorunalism and the prove for your statement that the company will go bust/tits up within days?

    Peter

    PS: Are the commentators above the so called “City pros” you mentioned in your post? I hope not…


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