Box Ships Inc (TEUFF)

[inv justice]

Dear Tinojax,
Please be advised that no response should be expected from “Postman” on the points raised, as it is evident that he is acting on behalf of Mr. Boogalloo. The communication attributed to him appears to be an attempt to intimidate shareholders who have identified and reported unlawful actions committed by Mr. Boogalloo. Actions that killed our investments and benefited Mr Boogallo.
I am one of the shareholders with direct knowledge of the facts, as communicated through our legal counsel. To address specific points:
1. The claim made regarding the COO is demonstrably false. The Greek prosecutor has not made any such statement as the one Mr Postaman alleges. It appears that Mr. Boogalloo is attempting to mislead and disorient the shareholders while simultaneously seeking to deflect responsibility for his fraudulent actions. The fact is that he took from the Companies and its shareholders their assets.
2. A former officer of the company was indeed called to testify and submitted substantial evidence regarding Mr. Boogalloo’s misconduct. Among the most significant evidence are email communications that show Mr. Boogalloo directed and influenced the so-called “independent” committee Board members, who decided to sell Companies’ (Paragon and Box Ships) vessels to Mr Boogalloo’s private entities. Effectively Mr Boogalloo dictated their decisions in order to acquire vessels from the companies, leaving them with no assets and destroying Shareholders’ investments. This evidence corroborates long-standing suspicions about the improper transfer of the vessels.
3. Substantial evidence was also submitted demonstrating that, in 2018, Mr Boogallo undertook actions intended to remove both himself and the Board from the Companies’ records and operations, with the apparent purpose of evading accountability to shareholders who had raised accusations against him.
4. Similarly, there is evidence relating to the alleged misappropriation of approximately USD 3 million. This relates to the now well-known “credit note” arrangement involving an associate of Mr. Boogalloo. The funds were transferred to Mr Boogalloo pocket in 2016, but because of the credit note, payment was never made, and the amount was allegedly misappropriated.
5. Further, when lawyers acting for another investor presented the credit note to Mr. Boogalloo in March 2018—two years after he had received the 3 million from Box Ships’ bank—Mr Boogalloo the next day after the receipt of the Lawyer’s letter he transferred the funds to a different company rather than the original intended recipient in an attempt to present a payment, which evidently was fictitious. This transfer alone is strong evidence of fraudulent intent.
6. Following these actions, (the 3 million taken from Box’s banks into his own pocket) Mr. Boogalloo claimed that Box Ships lacked sufficient funds and proceeded to issue convertible notes, which significantly harmed shareholders.
Given the above, we advise you to retain your shares. Additional legal proceedings based on more evidence are underway, and shareholders will likely have opportunities to claim compensation for their losses. Two more shareholders joined the team. There is ongoing campaign for more to come.
At present, the matter—together with the unprecedented ruling from the Greek court—has been submitted to the U.S. Securities and Exchange Commission (“SEC”), supported by a full set of documentary evidence both from the lawsuit documents and the documents presented by the former Officer of Box ships.
The SEC is expected to assess the allegations raised by the Greek prosecutor concerning the operation of the independent committee and opine on whether the CEO was allowed to communicate with the specific committee whose role was the assessment of affiliate transactions with him. SEC has been asked to also investigate the issuance of the convertible notes.
Parallel investigations are ongoing in Cyprus regarding the USD 3 million transaction.
A new lawsuit has been initiated based on further evidence discovered after the first case and together with the SEC, Mr. Boogalloo will, in due course, be required to answer before the courts.