Big Court Case Coming “It appears in all probability that the author of the signature said to be that of Pascali Senior is Pascali Junior,” the AMF said in its statement of allegations. And that means, the AMF says, that Mr. Pascali the CEO is in a “blatant conflict of interest” because he was negotiating with himself. (These are translations, as the AMF case documents are solely in French.)
Over subsequent years, PyroGenesis did stock offerings, and it said that the elder Mr. Pascali had subscribed to buy shares. But the AMF alleges that he did not purchase shares but instead was issued them by the company to pay off most of the obligation. By Dec. 31, 2017, the PyroGenesis financial statements said the balance owed was $111,928.
However, in early 2018, Phoenix said it was instead owed $5,531,928, the AMF says. That was the difference between what it had already been paid by PyroGenesis and the estimated 30-year total of more than $14-million in payments.
In the ensuing board discussions, Angelos Vlasopoulos, the chair of the audit committee, resigned. The AMF said he told the regulator during its investigation that he quit because “the circumstances surrounding this proposed transaction unduly exposed PyroGenesis to the risk of fraud.” (Mr. Vlasopoulos did not return a message requesting comment, sent via LinkedIn and e-mail to his current employer.)"
Source:Globe and Mail.com