RE: Cline Mining vs China RTO frauds
Post Scriptum to previous post.
June 2, 2011 2:37 PM | Permalink | Bookmark and Share
Last week, former partners in the law firm of Jenkens & Gilchrist, the former head of accounting firm BDO Seidman, and a former Deutsche Bank broker, were convicted on criminal charges related to a tax shelter scheme that reportedly generated f
ake tax losses of more than $7 billion.
In December, Deutsche Bank entered into a related non-prosecution agreement with the Department of Justice,
admitting criminal wrongdoing and agreeing to pay a $554 million fine in connection to its involvement in tax shelter cases that generated $29.3 billion in bogus tax benefits for their clients.
Five other defendants, former partners at the law firm or the accounting firm, previously pled guilty to criminal charges in the case.
The charges of tax evasion and conspiracy
carry possible prison terms of more than 20 years and multi-million dollar fines.
What penalties does Canadian law has for brokers knowingly and profitably aiding or/ and abetting scams?
I am affraid ZERO.
Seems , in Canada every broker is a GS = to big to prosecute.
https://www.rollingstone.com/politics/news/the-people-vs-goldman-sachs-20110511?print=true
https://www.rollingstone.com/politics/news/the-great-american-bubble-machine-20100405
==============
The real ( not done yet ) cost of ELK vs their $60 m capex scam
11 Feb 2010 CDN$6.90 Million In Financing
16 Apr 2010 $45,14 m
10 Nov 2010 $57.60 Million
June 7, 2011 $86,27m
=========================
Total 195 .91 Net to CMK $ 180m
minus Mitsui debt = $156 m
Looks like $100m to go to reach comparative capex in industry
to build 3mt mine.
And $ 200m ( THOSE ARE CO ESTIMATES!!!) to switch to longwall.
At $ 2 future financing they will have another 100m sh dilution before getting to 3 mt production .
TO A TOTAL OF 320m sh
Translates to roughly NO HIGER EPS after coming dilution than
25-30 C EVER !!!!
= $ 1.5 long term target ( 2015 ) at 5 P/E
Brokers commission on that= 6-8% = $
14m + free warrants =few $ millions
+ re-sale of the shares to suckers say
,10-20% = $ 25 m
Looks like $ 40 m = 20 % skalp . by brokers
on top of say $ 20 m skalp by insiders ( options sold at top)
Total skalp 30%= just 2/3 of investors money gets actually invested.
The beauty of the systems is - the victims pay for the cost to victimize them .
( including the cost of brokers "reports" LOL)
Quote from Jennings "report" Dec 2010:
" Following the recent completion of a $57.6 million equity financing at $1.95/share, we believe CMK should be able to reach its target production rate of 3.0 mtpy in 2013 without requiring additional equity financing"
In Jenings Apr 18 report above quote disappears = that dude knows 1.5 month ahead about coming hit of dilution
And he replaces it with $ 200m need, if longwall
To his defense ,
after his site visit he quickly reduced his 2011 target of 1m t to 700kt
Well, he didn't read my post saying DIVIDE EVERYTHING BY 3 .
A
nd removed total BS pump , quote :
" we do not rule out the possibility of
CMK acquiring/developing other metallurgical coal projects"
geeeesus ...dude Russel ...are you brother of GOD or something ?
=========================
How much CMK collected from investors over last 12 Y of PRODUCING ZERO OPER. INCOME = selling fairy tales , before above Elk financing?
A $ 100M?
That cost have to be included in the "payback " to investors by Elk
.