Mexican Newspaper Reports Criminal Charges Sought Against Ryan Morris Of Meson Capital
TooterTurtle >>>> The information I am posting is from a PDF file which was posted on another board and put together by GREEN RIVER ASSET MANAGEMENT,LLC who most understand have been an avid supporter of OMEX this past year.I cannot upload the PDF here but suffice to say that everything I post is a duplicate of the PDF transmission.
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GREEN RIVER
Asset Management,LLC.
This note is solely a reflection of my opinion based on my knowledge of the circumstances. I consulted with experienced professionals in making my assessments, and we are in broad agreement on these issues. All the same, these are my words, not those of the experts.
The translation used in this article is provided by sources believed reliable, but I make no warranty as to the accuracy of the translation.
I am not a lawyer and claim no expertise with respect to the legal system in Mexico or in the US. Consider this report a “layman’s” perspective on a potential criminal case.
The Author has obtained all information herein from sources he believes to be accurate and reliable. However, such information is presented "as is," without warranty of any kind - whether express or implied. The Author makes no representation, express or implied, as to the accuracy, timeliness, or completeness of any such information or with regard to the results obtained from its use. All expressions of opinion are subject to change without notice, and the Author does not undertake to update or supplement this report or any information contained herein.
This is not a recommendation to buy or sell any investment. We may transact in the securities of OMEX at any time subsequent to publication. Green River is a holder of OMEX shares.
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GREEN RIVER
Asset Management,LLC. November 4,2014
Summary
- Charges also sought against Carlos Ibarra of BCS Noticias, and Arturo Gonzalez Ramirez.
- Group accused of conspiring to commit massive fraud against Odyssey's (OMEX) Oceanica asset.
- Morris may face extradition and criminal trial in Mexico.
- Puerto Chale fishing cooperative also implicated.
In an interview with Mexican criminal prosecutor, Luis Manuel Diaz, published today in the Mexican newspaper, Sudcaliforiano, Diaz reveals that criminal charges are being sought on behalf of Oceanica against Mr. Ryan Morris of Meson Capital. Charges are also being sought against Arturo Gonzalez Ramirez (AGR) and Carlos Ibarra of BCS Noticias. (Full translated version of article provided below)
According to the article, the three parties were involved in a "massive campaign of false attacks against Odyssey Marine (NASDAQ:OMEX) and Expolraciones Oceanicas…with a purpose of enriching themselves illegally."
Many readers have previously noted the connection between Morris, BCS Noticias, and Arturo Gonzalez Ramirez. Morris has often cited news articles on the pages of SA from BCS Noticias, and many of those articles contain references to AGR.
The BCS Noticias blog appeared to be Morris's sole source for incriminating (and sometimes false) information about Oceanica. Morris seemed to know about stories from BCS Noticias regarding Oceanica before publication (though he always implied that BCS Noticias was independent in his "research") indicating some sort of tie between the two parties.
Morris has used AGR as an "on the ground" source in Baja California Sur. He referred to AGR in one of his comments, saying, "Things seem to be going very poorly for them in Mexico - a guy they hired to help with the permitting work told me that he has not been paid for months and has turned against the company now." According to the allegations
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in the article below, AGR falsely represented himself to the company and then tried to extort money from Oceanica when the company refused to work with him. Anyone familiar with the OMEX story may remember that AGR had a previous criminal record (see here), this appears to partly explain why Oceanica refused to work with him.
Allegations into this conspiracy extend to the Puerto Chale fishing cooperative as well, suggesting that it participated in an agreement to, "sabotage the "Don Diego" project. The Puerto Chale cooperative, which has figured prominently in Ryan Morris's work, is also facing criminal charges for, "different illicit acts during the year 2010, possibly constituting fraud…." These charges appear to be unrelated to Don Diego at this point. AGR is said to be close to the administrators of the Puerto Chale fishing cooperative.
The interview alleges that Morris worked with AGR and Carlos Ibarra "to insult the "Don Diego" project through the press, by internet and even presenting before the federal authorities, documents that contain false accusations, ….matters that are being investigated by the national and bi-national authorities." It notes that the actions of the group may violate a number of Federal Criminal Codes, and that the attorney believes that "without any doubt" he has the necessary proof to gain "exercise of criminal action on the part of the General Prosecutor for the Republic against these people."
As to whether or not Ryan Morris will be extradited to Mexico to face trial in Mexican courts, the attorney says:
With regard to the responsibility of Ryan Morris, we can say that if it is shown that the framework of our Federal Criminal Law accredits is, as are the body of crime and presumed responsibility, it would fall upon the part of the General Prosecutor for the Republic to have a Federal Criminal Judge issue an arrest warrant against him and with it to proceed with the extradition process in conformance with the international conventions subscribed to by Mexico with the United States of America.
Prosecutors may find out more as the investigations move into the discovery stage. In particular, it will be interesting to learn how these various parties worked together, whether or not any money changed hands between them, and which (if any) other US-based fund managers may be involved.
With Federal authorities in Mexico likely pursuing a case against Ryan Morris, this may expand to become a US criminal case as well (as the article seems to indicate). Morris recently acknowledged that the SEC has already been in touch with him regarding allegations that he has published illegal research here in the US. A Mexican case could serve as a catalyst to formalize the SEC's inquiry. If it is determined that Morris was orchestrating criminal behavior in Mexico, this could lead to very serious federal charges in the US.
My understanding of the Mexican criminal legal system is basic, and I am referencing a document which has been translated, so take this interview and my analysis with a grain
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of salt. In Mexico, criminal charges can be originated by private attorneys who present their case to a federal prosecutor. For those charges to be formally filed, the federal prosecutor must agree to take the case. Once the federal prosecutor accepts the case, it follows a process similar to that followed in the US. Oceanica's attorney has indicated a strong likelihood that the General Prosecutor will accept this case.
This news is likely to have an impact both on OMEX's business and its stock. As far as Oceanica goes, Ryan Morris has let it be known in a number of forums, that opposition to Oceanica will make a strong showing at the environmental hearings (scheduled for tomorrow) in Mexico. If that opposition involves the Puerto Chale group, anticipated criminal charges may temper the robust presence that Morris may have sought.
Criminal charges are sure to have a psychological impact on OMEX's stock. Of course, Ryan Morris has been tormenting the company with misleading allegations, and claims of insolvency and bankruptcy for some time. Criminal charges may cause Morris to reconsider publishing misleading research in the future.
This news could also have an impact on the short thesis surrounding OMEX and Oceanica. Short-sellers are already aware that many of the ideas underpinning Ryan Morris's short thesis have been false. Understanding that a large conspiracy may have been at play against Oceanica may cause shorts to question whether the various, and seemingly unrelated, negative stories about the tenement could have originated from a central nexus. It may also leave shorts questioning Morris's assertion that the tenement is worth zero, that it will not be monetized further, and that it will never gain an environmental approval.
Regardless, none of this changes our bullish investment thesis on Odyssey Marine or Oceanica. We still believe that Oceanica is a very valuable, and highly strategic asset, whose value is not appropriately reflected in shares of OMEX. We also believe that OMEX's shipwreck salvage business has entered a new phase that will likely prove highly rewarding to shareholders.
The translated text of the story appears below:
Conspiracy against the Don Diego project
Interview with Luis Manual Guadarrama, criminal attorney for Exploraciones Oceanicas, S.R.L. de C.V.
Mr. Guadarrama, please explain to us briefly who Arturo Gonzalez Ramirez is:
Mr. Arturo Gonzalez Ramirez is someone who approached the company Exploraciones Oceanicas, S.R.L. de C.V. offering his services for advising, consisting of obtaining what he called "THE SOCIAL LICENSE" on the part of the fishing cooperatives of the area. He even held himself out as representative and associate of the so called "Puerto Chale" Cooperative Society for Fishing Production S.C.L.
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By virtue of the latter and given his awareness of the town and its relationship with the cooperatives, Exploraciones Oceanicas, S.R.L. de C.V was ready to make an administrative contract in this respect and the confidentiality meeting necessary in these cases, which he never subscribed to.
Later the directors of the company found out that this person was not a representative of "Puerto Chale" Cooperative Society for Fishing Production S.C.L. and further he had a criminal record for fraud.
At the refusal to accept his participation as advisor in the company, this person stated as he could obtain "THE SOCIAL LICENSE", he could also sabotage it and for his support for the project he asked for the monthly payment of a considerable amount, which the company refused. It was there on that he began to insult the "Don Diego" project through the press, by internet and even presenting before the federal authorities, documents that contained false accusations, with the help of Carlos Ibarrra from @bcsNoticias and Ryan Morris of "Meson Capital Partners" in the United States, matters that are being investigated by the national and bi-national authorities.
Likewise, an agreement was made with Florencio Higuera Mayoral, Jose Humberto Espinosa Aguilar, Rene Mauricio Sanchez de la Vega Hampl, to form the direction of the Puerto Chale" Cooperative Society for Fishing Production S.C.L. and with it to have more strength to sabotage the "Don Diego" project. These people now are subject to an criminal charge for having committed different illicit acts during the year 2010, possibly constituting fraud and other things, damaging the company they represent, Puerto Chale" Cooperative Society for Fishing Production S.C.L. and associates that it is comprised by, for the amount of $2,554, 225.00 (Two million five hundred fifty four, two hundred twenty five Mexican Pesos). This amount could increase considerably once the General Prosecutor for Justice of the State practices the corresponding audit, criminal facts that were filed by Mr. Amado Navarro Higuera, active partner of the company Puerto Chale" Cooperative Society for Fishing Production S.C.L. before the Prosecutor for Justice of the State of Baja California Sur, and which was processed under the prior verification number LPZ/708/AMP10/2014.
Why has Mr. Gonzalez Ramirez been attacking Exploraciones Oceanicas so insistently? The attacks are due to the fact that the company did not go along with being extorted.
What does he gain from all this attacking?
It's not known. It would seem that he has the belief that the company sooner or later will have to pay him and the people that have helped him to orchestrate this media attack, which not only affects the economy of the local community, but also is an assault against the national consumption and wealth, given that the product to extract is phosphate.
What legal actions will Exploraciones Oceanicas take and how?
Exploraciones Oceanicas feels that the conduct maintained by those involved could constitute crimes foreseen and sanctioned in the Federal Criminal Code, in Chapter 1,
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article 253 section I, part b) which deals with Crimes against national consumption and wealth, as well as those typical in Article 390 - which talks about extortion ; and Article 208, which talks about those that publicly provoke others to commit a crime, independent from the falsehood with which they have conducted themselves before different authorities at the judicial level, with the aggravating circumstance that this group of people has joined together for the commission of all these acts that possibly constitute different crimes.
Is there is a conspiracy against Exploraciones Oceanicas?
As I indicated to you before, there is, from @bcsNoticias as Carlos Ibarra in Mexico and Ryan Morris from "Meson Capital Partners" in the United States, who have undertaken a massive campaign of false attacks against Odyssey and Exploraciones Oceanicas, tending to affect the group in the United States and Mexico and all with a purpose of enriching themselves illegally.
From your point of view and experience, what perspectives does this case have?
Without any doubt, we have the necessary proof to obtain the proper integration of Prior Verification and the consequent exercise of criminal action on the part of the General Prosecutor for the Republic against these people, which have joined together to commit crimes against the national economy, society and the party I represent, , Exploraciones Oceanicas, S.R.L. de C.V.
Does the company intend to request the extradition of Mr. Ryan Morris, for him to be tried in Mexican courts? With regard to the responsibility of Ryan Morris, we can say that if it is shown that the framework of our Federal Criminal Law accredits is, as are the body of crime and presumed responsibility, it would fall upon the part of the General Prosecutor for the Republic to have a Federal Criminal Judge issue an arrest warrant against him and with it to proceed with the extradition process in conformance with the international conventions subscribed to by Mexico with the United States of America.
Thanks a lot Mr. Luis Manuel, we thank you enormously for the time you have provided us for this interview.
Luis Manuel Guadarrama Diaz
Specialist in Criminal Law and Mercantile Law. Gave classes (assistant) in the Free School of Law in the subject of General Crime Theory.
Member of the FY Legal Services Law Firm, of Grupo FY International (Auditing and Consulting Firm) of Vancouver, BC, Canada.
Member of the world association of lawyers called Laworld Invernomos based in Zug, Switzerland.
Member of the Chamber of Commerce of Canada and Mexico.
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Currently he is undertaking private practice in the office of Guadarrama, Rodriguez & Galindo, where he is head of the area for Litigation and Criminal and Mercantile Consultation.
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AI
