Over recent days various documents have appeared online under the name “Charlotte Fakes” seeming to refer to the dealings involving Craig Whyte, Charles Green and Rangers.
I have not commented on them in detail so far for various reasons.
First of all, I have been very busy and it would take time, from what I have seen of them, for proper analysis of the documents.
Secondly, until things are made clear, the veracity of the documents is uncertain. That is not to say that they are fakes, or doctored, or as in the case of invoices involving Rangers and Ticketus, created using clip-art!
At first look they seem to have the appearance of being genuine, but until confirmed either way that can only be guesswork. If however the documents have been created to mislead, then that is a lot of effort, for uncertain effect.
Thirdly, the source of the documents themselves, if genuine, is important. Are they being leaked by a party or someone close to the issue? Were they found by legitimate investigation or discovered abandoned in a bin? Has someone hacked a computer, or broken in to a filing cabinet?
I have no idea and therefore, until the provenance is established, I won’t devote the time to detailed analysis, simply to avoid wasting my efforts should the documents turn out to be as genuine as the Zinoviev Letter or the Protocols of the Elders of Zion.
But I must say that the alleged Minutes of a Sevco 5088 Ltd Board Meeting held in May 2012 which have now been posted by “Charlotte Fakes” mentions some familiar names and a couple of new factors.
The minute alleges a meeting between Aidan Earley, Craig Whyte and Charles Green where it was agreed to appoint Messrs Whyte and Earley as directors in place of Mr Green. It was also agreed to allot shares in Sevco 5088 Ltd to two companies.
The first of these is Willow International Ltd. That company has been mentioned on this blog before.
In September 2011 Merchant House Group PLC issued a Stock Exchange statement which included the following:-
MHG, the financial services group, is pleased to announce that it has issued 400,843,744 new ordinary shares of 0.01 pence per share in the Company (“New Ordinary Shares”) pursuant to the following:
– 208,500,000 New Ordinary Shares to Willow International Limited (“Willow”) (held by Pershing Nominees Limited)`at a price of 0.05 pence per share pursuant to conversion of £104,250 of the New Convertible Loan Notes* (“NCLNs”) issued by the Company to Liberty Capital Limited, which subsequently transferred £104,250 of loan principal to Willow, a company domiciled in the Seychelles (“Conversion Issue”).
Following the Conversion Issue, there are now £171,750 of NCLNs in issue, all of which are held by Liberty Capital Limited;
Following the issue, allotment and admission of the New Ordinary Shares, the following shareholders will, where known, be interested in three per cent or more of the enlarged issued share capital of the Company as follows:
Liberty Capital Limited (held by Prism Nominees Ltd) 18.23%
Willow International Limited (held by Pershing Nominees Ltd) 7.62%
(I have omitted the rest of the list).
Regular readers will know that Merchant House Group is closely connected to Mr Whyte.
Liberty Capital Ltd is the BVI based company which Ticketus is seeking to wind up shortly. It is owned by Mr Whyte.
Willow International Limited is a company based in the Seychelles. According to the alleged Board Minute it was to be a major shareholder in Sevco 5088 Ltd as nominee for Liberty Capital Markets Ltd.
Liberty Capital Markets Ltd has also been mentioned here before. There was a company of that name dissolved in 2010. Its sole director was Mr Wulstan Earley, brother of Aidan Earley.
A new company of the same name came into being after the dissolution of the original Liberty Capital Markets Ltd – its sole director is Wulstan Earley.
Liberty Capital Markets Ltd should not be confused with the multi-billion dollar company “Liberty Capital Markets” and it would be unfair I am sure to suggest that there was any intention to create any such confusion.
As for “Korissa Capital Inc.” which was to be allotted 5 million shares in Sevco 5088 Ltd, I suspect we will find that was incorporated in some exotic corner of the world. One can only wonder to whom it was closely connected…
Who Benefits from these Documents Being Publicised Now?
They appear to show how closely Mr Whyte was connected to Mr Green. Bearing in mind that Mr Green has been evicted from Ibrox as a result of this being rumoured, and that these connections are all still being investigated as I write, it could be thought that their effect might be as follows (and I do appreciate that is a few caveats!):-
1 They are being used by opponents of Mr Green to ensure that his involvement with Rangers is at an end;
2 They are being used by Mr Whyte to provide him with leverage for the claims which are to be progressed by Worthington Group PLC against The Rangers Football Club Ltd (formerly Sevco Scotland Ltd);
3 They are being used to embarrass the Pinsent Masons investigation into Green/Whyte, if it was on the point of clearing the former CEO;
4 They are fakes which, when that fact is revealed, will catapult Mr Green back, with his name cleared, into Ibrox;
5 They are being leaked in an effort to force the Scottish football authorities to take action against Rangers for breaching undertakings it is understood to have given to obtain an SFA membership last year;
6 Or a combination of all of the above.
Even if not genuine, the documents shed some light on how certain sectors of the business world operate – the effort and energy goes into shifting bits of paper representing debts and shares around from company to company, till no one is quite sure who owns what.
It would be wrong to suggest that this effort goes into creating financial circumstances designed to confuse and to extract money from unsophisticated investors. Instead it is a means for clever trading to increase wealth by entirely legitimate and fair means.
The problem with the Rangers takeovers, by Whyte and Green, is that these have been done in the full glare of scrutiny, and scrutiny which can be shared easily with many people. I suspect that deals to squeeze money out of distressed companies, to move assets into new companies, leaving debts in old, to swopping shares for bonds of varying value and substance, happen day in and day out – often done by the equivalent of Del Boy Trotter, but with more expensive suits and less moral fibre.
But that is for another day.
Instead we wait to see what more “Charlotte” has to say and, once any of the mainstream media raise the issue and provoke denials or acceptance of the documents as genuine, detailed scrutiny of what they refer to.
Posted by Paul McConville