No, it's real daisies in the bankruptcy court has a letter that was sent to the LTC written in (I believe Dutch) and it's from a investment firm detailing how to hid the licensing revenue so it shows up in LTC SEC filings as a "Loan" not revenue. In return for this loan LTC was to issue shares in the company to the Dutch Entity.
That's how we got to have two billion shares of stock.
Here is an english translation of that letter.
" Dear Madam or Sir:
Concerning the issue of investment in kind by Dilo Trading AG on December 31, 1999, we can give you the following information.
In general, Dilo Trading AG could allocate patent surplus as a capital surplus of capital reserves in one of two ways.
On the one hand, the existing shareholders could return the stipulated 10% of capital stock to the corporation in proportion to the distribution of ownership and then the corporation could reimburse Dilo Trading AG. Direct share sale through the corporation is much more difficult, because it would only represent a legal transaction between the shareholders and the amount of difference between the nominal shareholding amount and the patents value would only represent the capital profit of the shareholders and not the issue charge (capital surplus) of the corporation.
On the other hand, Gaia could increase existing capital stock by 10%, which would produce real capital surplus and make allocation to capital reserves possible. We would prefer this option because it is much easier to execute.
Concerning the second option, we must point out that we can enter capital increase into the trade registry only after the financial statement date and therefore entry as subscribed capital does not yet come into question. We will enter the capital increase under special items (“Deposits Made for the Execution of Capital Increases”). In general, we make the entry between equity and debt capital; the item does not represent equity capital. In order to be able to make entries of capital increase for eliminating missing amounts not covered by equity capital, either the trade registry entry must occur before the closing date for preparing the annual financial statement or the share transferee must declare that the deposit made may not be reclaimed even if the capital increase is not executed.
We are at your disposal at any time, if you have further questions.
Sincerely,"
Now remember how this worked LTC patented intellectual property was deposited in a Swiss corporation called "DILO" Dilo was a licensing corporation created by Arch Hill Capital (LTC) major shareholder.
How it worked was LTC intellectual property was licensed out worldwide through this Swiss corp and all the licensing revenue that was generated was deposited in the Swiss Dilo account. Arch Hill Capital would remove the money and invest it in real estate in the Netherland and give a portion of it back to LTC for salary and expenses. In return for this "Loan" LTC issues Arch Hill Capital shares in LTC (today over two billion shares).
That letter from the Investment firm tell LTC CFO how to hide the licensing revenue is our only hope that the bankruptcy court will invalidate the majority of LTC shares leaving just us small shareholders shares. So I firmly believe in the Federal court is honest and won't be corrupted like all the other times LTC was in a court action.
So Daisies if this bankruptcy court is as honest as I believe it is we will all do very well.
