A.C.Simmonds and Sons Inc. (fka ACSX)

[dmax2013]

Spoiler alert.....Simmonds is in a heap o trouble!

Go to the Duff & Phelps website:

http://www.duffandphelps.com/intl/en-ca/Pages/RestructuringCases.aspx?caseId=1016

Under the Motion section
Motion Material
Motion Material Returnable May 12, 2015 - Volume 1, Part 1
Read PDF pages 28-72 (Second report of the receiver dated May 1, 2015)

WOW! I am now officially speechless!!!!! It is much larger than we all expected, and the evidence appears irrefutable.

These guys (Simmonds and his cronies) fraudulently transacted and misrepresented material facts for material gain to depths rarely seen by public companies. (See section 4 page 45-46)

They substituted (faked) real Goudas customer numbers (Sobey's, Price Chopper, etc., etc.) for related party company names (A.C Simmonds, Vertility Oil $ Gas, etc., etc.), then pumped a whack of inter company fake / fictitious invoices, which made RBC think that these fabricated fake receivables were, in fact totally legitimate. They then filed these fabricated / faked weekly or in some cases daily release reports with RBC, who thought that these customers were legitimate, and therefore advanced 85% of the value of these faked invoices to Goudas.

They (Simmonds and the cronies) had no chance or intention of ever collecting, so when these approached an aging of 90 days, Simmonds and the cronies would "kite cheques" from one to another to reduce the amount of overdue receivables (less than 90 days) to below 25% of the total value of that fake customer's account, so that they could continue to draw on, and run up Goudas credit facility. Had they not done this, RBC would be richer, this fraud would have been exposed earlier, and hopefully Simmonds would already be doing time in Jail. There is also the possibility that some investors may have been spared.

Plasticap, Biosec, and many others apparently had no idea about these "inter company" receivables, apparently never saw the invoices, etc. The CFO of A.C Simmonds was apparently clueless as well, often working from hand written notes or verbal instructions from good old Johnny Boy! As it turns out, most of the "acquisitions" announced by A.C Simmonds were also untrue or faked!

Check out the internal emails that talk about and outline this "game of hot potato" activity, contained in the same report on pages 52 thru 59. The receiver has 30,000 emails to draw from. When liquidity was low, money was tight in the A.C Simmonds empire, Simmonds simply fabricated more inter company toilet paper, bundled it up, and "sold" it off to RBC at a 15% discount to face value.

Simmonds also took some 400K+ for himself in "management" fees. This is in addition to the looted cash, as well as all of the investor cash that was collected in exchange for either non existent, or worthless stock.

If this isn't blatant Fraud, I don't know what is. These guys successfully bankrupted a business, stole 8M$ in the process of doing so, plus many millions more from innocent investors. Where are the cops? This now looks like a no brainer prosecution....why are the cops waiting to proceed.?....Hopefully the cuffs will be slapped on Simmonds this week, now that this colossal stinker has been exposed for what it really was....DELIBERATE FRAUD!