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Hopefully a Class Action is announced immediately following the reverse split announcement. You don't systematically wipe out your entire retail base and get away with it.
From the Rights Offering that Offor backed out of, to the toxic death spiral done in multiple tranches to magnify the damage, to the reverse split... Ntephe, Odobulu, and Offor have intentionally wiped out the retail shareholder.
That's illegal. It's illegal as hell.
condor1, IMO the transfer agent cannot legally disclose the number of shares to any one shareholder, by phone, email or otherwise. It's a violation of reg. FD. The shares outstanding number is a very material piece of information and must be disclosed publicly to all shareholders simultaneously.
I think the disclosure to Gremlin9999 was a big whoops by a low level employee at Stock Transfer. That mistake was corrected and the *rumor* that ERHC gagged them was start by the transfer agent to increase the madness so they can cover their shorts from last year when they learned Ntephe was stupid enough to go toxic.
Law be damned, we're in the snake pit now.
emdyal, this is one of only a handful of your 10,000 posts that I agree with. It seems like a no-brainer, which makes me believe Offor is behind the shareholder destruction Ntephe is implementing.
They think they can wipe us out and move on. In reality, what they are doing is making sure that message boards equate the names; ERHC, Emeka Offor, Peter Ntephe, and Sylvan Odobulu with Nigeria Scam.
"And I don't see the share price going up much as long as the potential of billions of shares of dilution by Chrome or by anyone else is still on the table."
Why do you say something like that when nothing ERHC says or does will ever convince you that dilution is off the table. If they say there will be no more dilution you will just call them liars again.
You are wasting your time asking any poster what Offor will do.
Please stop wasting *everyones* time.
I see your point(s). Thanks.
So Krom, given your talk with Sylvan Odobulu, the CFO of ERHC Energy, and the email from Diane from Corporate Stock Transfer, do you intend on going forward with your plan to invest the 2nd half of your funds now?
There is deception everywhere you look. Is it ERHC, the TA. or the SEC?
In a perfect world a farm-out deal in the EEZ will be inked ASAP and include enough cash to get through drilling Kenya. But given the lengths that ERHC executives have gone to hide the truth even that may be too little too late. Any significant pop now would have those that got screwed out of everything signing with any Class Action outfit that will take the case.
Ntephe has destroyed this company, and the BOD sat and watched... if they even did that... and did nothing about it.
They *all* are liable for the destruction they caused, whether it be from action or inaction.
"Then who gagged the TA IYO". SEC investigators is my guess. It smells like a Class Action is being put together. I have no knowledge of one, but if ERHC didn't gag the TA, the only other entity with that authority is the SEC/Feds.
I didn't say that.
Krom, reality check...
"I don't think there will be a reverse split. There's no evidence..."
Ntephe gagged the Transfer Agent from telling us the current shares outstanding. There can be only ONE REASON for that. The shares outstanding are going to change, significantly, and he wants to hide that fact.
Wake up... this company's CEO is trying to deceive his shareholders and the do-nothing BOD continues to break the law by allowing it to continue. Those with Fiduciary Duty to ALL shareholders are working actively to destroy us. The whole thing is illegal.
They both suck. Nuf said.
LOL!
It's criminal negligence, IMO.
Pull out a calculator.
Nearly a billion new shares have been released since last year. Offor hasn't bought *one*. His $250K debt is worth 300M shares at this price. At this point in time Offor may have lost control of ERHE, and at this price he can't get that back.
I realize that could change tomorrow. He could loan more or the price could drop substantially, R/S could neuter us, etc.
But at this point in time, Offor does not control the vote anymore. Of course, that means that the wanna be CEO hiding under his desk until his sugar daddy tells him what to do won't call for a vote, and the non-existent BOD won't uphold their fiduciary duty to shareholders, and the laughable waste of money called the SEC will do nothing... yada, yada, yada.
Same as it ever was. Same as it ever was.
No! You did NOT just say that! ugh
Good post Middy. I don't mind your "negativity" when it's reality. But IMO, you are making a complete fool of yourself continuing to pound on Ntephe about Stanford... really. There are plenty of things to bust his beans about, but not Stanford. How about the "should be illegal" move to gag the Transfer Agent to hide what changes are occurring with the shares outstanding? I haven't seen a peep from you on that. If that is because you are instructed not to talk about it by CA attorneys, I understand. Just know that the vast majority trying to put lipstick on this pig will join that suit in a heartbeat if it happens... JMHO.
Let's put this to bed once and for all...
This is the "Bank" ERHC deposited $5M into, and who wouldn't??? Before *anyone* decides to reply "I wouldn't", remember that you are an ERHC Energy shareholder... nuf said.
Stanford Financial Group
The Stanford Financial Group was a privately held international group of financial services companies controlled by Allen Stanford, until it was seized by United States (U.S.) authorities in early 2009. Headquartered in the Galleria Tower II in Uptown Houston, Texas, it had 50 offices in several countries, mainly in the Americas, included the Stanford International Bank, and said it managed US$8.5 billion of assets for more than 30,000 clients in 136 countries on six continents. On February 17, 2009, U.S. Federal agents put the company under management of a receiver, because of charges of fraud. On February 27, 2009, the U.S. Securities and Exchange Commission amended its complaint to describe the alleged fraud as a "massive Ponzi scheme".
Sponsorships and charity
In 2007, Stanford Financial Group assumed title sponsorship of the Stanford St. Jude Championship, a top PGA Tour event to benefit St. Jude Children's Research Hospital of Memphis, Tennessee. On March 20, 2009, after the Group's fraud was revealed, the PGA announced that they would be dropping their affiliation with the company and that for 2009 the event would be called the St. Jude's Classic.[17]
Stanford Financial Group was the lead financier for the 2007 film The Ultimate Gift. According to the Association for Healthcare Philanthropy, the story of The Ultimate Gift promoted philanthropy in not-for-profit health care institutions.
The group established a significant presence in golf, polo, tennis, cricket and sailing, sports which were popular among Stanford’s wealthy clients. Stanford Financial Group was the title sponsor for such sporting events as the Stanford U.S. Open Polo Championship, the Stanford USPA Silver Cup, the Stanford Antigua Sailing Week, the PGA Tour Stanford St. Jude Championship, and the Stanford International Pro-Am. Stanford also sponsored professional golfers Vijay Singh, Camilo Villegas and David Toms as well as Morgan Pressel on the LPGA Tour. In tennis, the company was a sponsor of the Sony Ericsson Open. Stanford also sponsored the Champions Series Tennis Tournaments featuring Jim Courier, John McEnroe and Pete Sampras.
The Stanford Financial Tour Championship, previously known as the LPGA Playoffs at The ADT and the ADT Championship, was the season-ending golf tournament on the US-based LPGA Tour. Beginning with the 2009 event, it was to be sponsored by Stanford Financial Group.[20]
As one of the founding partners, Stanford Financial Group was also involved in Tiger Woods's annual golf tournament, the AT&T National.[21]
Is ERHC setting itself up to be eaten by Oando like Exile was in a reverse split slaughter of Exile's shareholders?
If that happens ERHC shareholders will never, ever see a gain on shares purchased prior to 2015... period.
Ntephe gagged the transfer Agent from telling us how many shares are out for exactly that reason. He see's toxic debt as "quick and attractive"... his words. Like a teen that swiped daddy's credit card... you ain't seen nothin' yet.
There is 1 reason to gag a Transfer Agent from disclosing to the public... and 10 reasons why it should be illegal.
Of COURSE Ntephe knew the effects of this type of financing! The many tranches, each at 60% of market, shows CLEARLY that his intent was this outcome. What we don't know is why?
I hear you condor. But realize the we both could sit here all day long and analyze every company that went bankrupt in 2007-2008, and we could easily point our finger to the mistakes those CEO's made to cause their problems.
Hindsight 20/20 vision is fine to learn from, but not to judge by. Let's hope Ntephe has learned his lesson with convertibles.
Sorry. What was I thinking?
100% correct Strat.
Back the truck up!
When Offor stepped down it was from Chairman of the Board, not CEO. There was never anyone named Brubaker at ERHC. Walter Brandhuber was the CEO a year prior to Offor resigning as COB and was replaced by Nicolae Luca.
Ntephe took over after Luca quit.
"What else was there?"
Lease payments on the Houston Office, Nigerian office, Kenyan office(?). Repeated travel from London to Nigeria, Sao Tome and Principee, Chad, Kenya, and probably the U.S. These are all inclusive; air fare, Hotel, transportation and meals... and probably a petty cash account for "entertainment" while travelling.
And the computers they use are leased, the software is leased, the furniture is leased. And don't forget, Ntephe sits in London. There is either an unknown office there (drop the Gherkin idea, I checked) or Ntephe has home office expenses, which include Internet and Phone, home office equipment (leased) all the way down to printer ink and paper.
I think that covers about 75% of the obvious expenses. I'm not defending Ntephe, just pointing out the costs you missed.
And where is the remaining $30 million...??? Paychecks, Oando, and conferences...mostly paychecks
That is utter nonsense. Pull the last 10 10K's and add up the salaries. $4-5M... tops.
If you are right then why did Ntephe update the FAQ with a 1/500 reverse split example? Why float the Armageddon scenario unless you are prepping the shareholders you are about to wipe out?
The retail investor is being eliminated. There is no other explanation. If Offor steps in to save the day now, which I think everyone agrees he will, then why didn't he before this wrecking ball hit?
We are intentionally and IMO, illegally, being remove from *our* investment.
The only scenario where the above doesn't ring true is if Ntephe went to Offor for financial support (the Rights Offering) and Offor said "No". Ntephe forced the issue by going toxic. In that scenario ERHC will get it's money and Ntephe will very shortly be unemployed.
That second scenario is unlikely. Offor would have put an end to the share price destruction long ago. It looks, very strongly, that Offor and Ntephe are working together to eliminate us.
A decade of our lives and a sh!t-ton of money... gone.
Ntephe's disdain for the negativity on this message board suggests that eliminating the retail crowd is precisely his intent... even if it is blatantly illegal.
A 1 for 500 reverse, Ntephe chosen example on the FAQ, would take Offor down to 610,000 shares. Then he loans the company the cash it needs to get through drilling in return for 40M shares (assuming a post split 25 cent share price).
He's owns 40M of the 44M share outstanding (90%), and we're effectively gone. Welcome to Nigeria.
What appears to be happening here is criminal.
I agree that bankruptcy is not on the table. That's why there was no "going concern" clause in their filing.
A 1 for 500 reverse bringing the outstanding down to 4 million on the other hand, that is squarely in play. Then Offor will sign a funding agreement for whatever number of shares he wants. He'll own 99% of the company and our shares will be 1/500th of what they were.
Offor wins. We lose. Welcome to Nigeria.
"We expect that some of the challenges of selling the ERHC proposition to the larger investment community might now be significantly lessened without the cloud of suspicion raised by the subpoenas".
*I* expect that Ntephe's decision to use convertible debt, calling it "quick and attractive", and then ordering the Transfer Agent to conceal the changes to the company's share structure has introduced far, far more challenges than the DOJ ever did.
He has single handedly obliterate the company while the BOD watched and did nothing.
We've been prepped on the company's website for a 1 for 500 reverse. Grab your ankles and call your lawyers, he's destroying it on purpose.
Strat, I'd like your thoughts on *how* the debentures debacle was implemented. Ntephe *chose* to use multiple lenders multiple times. He *chose* to have the share price gutted by each iteration to 60% of it's previous value. Ntephe *chose* to use more than a dozen tranches, each gutting the share price to 60% of it's previous value. The destruction of the share price was absolutely intentional.
Why would any CEO legally obligated to look out for shareholders intentionally and willing annihilate the share price?
Basic CEO Job Description
The chief executive officer and other corporate officers represent the company in all of its regular operations. The CEO acts on the small business's behalf in most legal matters, and thus holds the authority to bind the corporation in contracts, debt obligations and legal proceedings. The extent of a CEO's power to make unilateral decisions for the business varies according to the business's governing documents, which are legally enforceable. The CEO reports directly to the board of directors.
Fiduciary Duties
Both the board of directors and the CEO of a small business have a fiduciary responsibility to the business's shareholders. The fiduciary duties are legal concepts that form the basis of a CEO's legal relationship with his company's owners. According to the American Bar Association, courts have ruled that a CEO's relationship with his small business's shareholders carries more legal responsibility than his relationship with his company's creditors. This is because the creditors' relationship with the company exists purely as a result of a legal contract. The shareholders' relationship with the CEO, by contrast, entails both a binding contract and the trust of that CEO in controlling the shareholders' property.
Duties of Care, Loyalty and Disclosure
A CEO's legal responsibilities to his company's shareholders are broken down into three distinct fiduciary duties: the duty of care, the duty of loyalty and the duty of disclosure. The duty of care refers to the CEO's responsibility to consider all of the available information relevant to business decisions, including the advice of experts and employees. The duty of care also includes the responsibility to understand and evaluate the company's day to day operations and the terms of agreements. The duty of loyalty requires that a CEO always acts in the best interest of a business's shareholders, and that he places that interest above his own in business decisions. This includes the responsibility to avoid conflicts of interest. Finally, the fiduciary duty of disclosure mandates that a CEO fully inform both the board of directors and the shareholders about the major issues facing the business.
http://smallbusiness.chron.com/legal-relationship-between-shareholders-ceos-33637.html
How does gagging the transfer agent to hide the most material change in company history fit into Ntephe's legal responsibility to us? Ntephe has blatently broken the law as described above and should be held accountable.
LOL! Why?
You don't think ERHE could cut expenses 90% - 95%? They have proven they could survive on less than that for many years before they got their first $50,000,000.
That's true, but when given $50M Ntephe has shown he is fully capable of spending it, whether it helps the company or not.
The money is gone. Every BOD member needs to be held accountable for letting Ntephe run this company into the ground.
LOL! It's not been cool for too long.
Very successful CEO's recognize shareholders as the lifeblood of their company, and treat them as such. Failed CEO's look at their shareholders as something to bleed... to exploit. Ntephe is a failed CEO.
If I could ask Sir Emeka Offor 1 question it would be, "why did you let Peter Ntephe hurt so many people in your name? You could have stopped this.
Hey Peter...
"Shareholder Support Will Bode Well for ERHC Energy Inc.’s African Exploration Programs
Large and Small Shareholders Pledging Support for Intensified Fund Raising
HOUSTON, October 4, 2012"
Does 5/100's of a penny "bode well" for the company? Is this what you were planning for back then? Or maybe, just maybe, you are so out of touch with reality and incompetent in the CEO position that you just say stupid stuff like that?
So which is it Peter? Are you *that* incompetent or just an immoral dishonest scammer?
Gagging the transfer agent strongly suggests the latter. You are a pathetic dishonest man, Peter Ntephe.