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Friday, August 10, 2012 7:00:59 PM
Regarding FFGO ever trading again...
Imagine you & a bunch of your chums living safely outside the US, far from the normal jurisdiction of the USDOJ, getting together in the local pub one day to hatch a share selling scheme to make enough money for a few lavish, exotic holidays.
One draws the short straw and incorporates his company, the primary one, in the remote state of Wyoming while others get to incorporate theirs in the Shareholder Party state of Nevada.
You go online and find a couple undeveloped mining properties in Arizona that have had something resembling real assay reports claiming vast amounts of gold...and strike a "deal".
Everyone chips in and you hire a few very smart (and expensive) lawyers to write a series of convoluted legal documents describing "intentions" to acquire rights to said properties, with plans to "eventually" sell them at a huge profit. They go on to talk about creating a dividend as a means to "eventually" distribute the lucrative sale proceeds to investors who are warned that to be eligible, must buy and be holding company shares by a date to be named later..."eventually".
(Certainly nothing original to the plan so far...already been done many, many times before. But it's a time-proven classic and you feel you can do it at least as well as your successful predecessors to make a "few" pounds.)
What follows is a return to the pub for a long night of heavy drinking to celebrate the imminent launch of the endeavor. The next morning, you pick the most outrageous rate of return you can remember being mentioned and slip it into the documents...the ones already completed by the legal beagles...purely as a hoot...and 'cause yer still feelin' a bit tipsy.
Well, the documents get published with the shenanigans intact. Imagine your surprise when sales of your company stock suddenly skyrocket and you soon find yourself out of authorized shares.
With a minimal amount of research, you quickly learn that you can keep increasing the number of authorized shares and continue selling them, while all along, blaming the phenomenal trading numbers on an urban myth called "Massive OTC Naked Short Selling", perpetrated for free by anonymous stock message board posters...FOR FREE, mind you!!
You rescind the original dividend distribution deal and offer an even more lucrative one, hoping that what worked extremely well once might work even better the second time. But this time, your lawyers (still unamused with your little drunken prank) insist on creating a list of non-negotiable conditions for its completion (8 sounds like a reasonable number) so that the deal can be taken seriously and perceived as being perfectly viable. Then (because they are smart), they add a back-up plan: another much simpler list of automatic "deal breakers". Both are done to cover your collective arses just in case the deal draws the attention of someone in the DOJ.
Imagine the surprise when this one works too, even better than the first (as hoped), and all the newly issued shares are once again, quickly & eagerly bought up.
Much to your credit though, you are smarter than you are greedy and realize that it's finally time to close up shop and walk away when the SEC gets off its arse and finally revokes your primary company, the one which had offered those multiple teasers of that Extraordinary Super Duper Dividend. Of course, this was fully anticipated since you had all decided from day one to earmark the money normally spent on accountant fees and required SEC financial filings and to use it instead for those expensive lawyers. In hindsight, this decision was pure genius since the SEC could now be accused as being the bad guys for sticking shareholders with untradable securities.
Now, imagine being able to control potential backlash from shareholders, especially those who you know will be unhappy when the dividend distribution continues to remain unannounced, by declaring well in advance that a deal as rich as this one might take a year or longer to execute...and then assuaging them with your sincerest, cross-my-fingers-and-hope-to-die assurances that they will be immensely happy the day they finally see the money in their accounts.
That little addendum (another stroke of genius) brought with it one last, unexpected entertainment bonus: interminable message board discussions as to whether or not your revoked & administratively state dissolved company can still issue that promised dividend...when you ultimately declare it...from your "offices". Completely irrelevant to you, of course, but just one final joke for your group to laugh about on those frequent long, fully funded, first class, exotic holidays.
So to answer your question as to whether FFGO might ever trade again...
if you were one of that group...
what would be the point?
Disclaimer: Granted, some literary license was exercised to portray a few of the events. But the cold, calculated plan should be seriously considered as many of the details were taken from the company's own website while others are just rational, common sense conclusions.
Imagine you & a bunch of your chums living safely outside the US, far from the normal jurisdiction of the USDOJ, getting together in the local pub one day to hatch a share selling scheme to make enough money for a few lavish, exotic holidays.
One draws the short straw and incorporates his company, the primary one, in the remote state of Wyoming while others get to incorporate theirs in the Shareholder Party state of Nevada.
You go online and find a couple undeveloped mining properties in Arizona that have had something resembling real assay reports claiming vast amounts of gold...and strike a "deal".
Everyone chips in and you hire a few very smart (and expensive) lawyers to write a series of convoluted legal documents describing "intentions" to acquire rights to said properties, with plans to "eventually" sell them at a huge profit. They go on to talk about creating a dividend as a means to "eventually" distribute the lucrative sale proceeds to investors who are warned that to be eligible, must buy and be holding company shares by a date to be named later..."eventually".
(Certainly nothing original to the plan so far...already been done many, many times before. But it's a time-proven classic and you feel you can do it at least as well as your successful predecessors to make a "few" pounds.)
What follows is a return to the pub for a long night of heavy drinking to celebrate the imminent launch of the endeavor. The next morning, you pick the most outrageous rate of return you can remember being mentioned and slip it into the documents...the ones already completed by the legal beagles...purely as a hoot...and 'cause yer still feelin' a bit tipsy.
Well, the documents get published with the shenanigans intact. Imagine your surprise when sales of your company stock suddenly skyrocket and you soon find yourself out of authorized shares.
With a minimal amount of research, you quickly learn that you can keep increasing the number of authorized shares and continue selling them, while all along, blaming the phenomenal trading numbers on an urban myth called "Massive OTC Naked Short Selling", perpetrated for free by anonymous stock message board posters...FOR FREE, mind you!!
You rescind the original dividend distribution deal and offer an even more lucrative one, hoping that what worked extremely well once might work even better the second time. But this time, your lawyers (still unamused with your little drunken prank) insist on creating a list of non-negotiable conditions for its completion (8 sounds like a reasonable number) so that the deal can be taken seriously and perceived as being perfectly viable. Then (because they are smart), they add a back-up plan: another much simpler list of automatic "deal breakers". Both are done to cover your collective arses just in case the deal draws the attention of someone in the DOJ.
Imagine the surprise when this one works too, even better than the first (as hoped), and all the newly issued shares are once again, quickly & eagerly bought up.
Much to your credit though, you are smarter than you are greedy and realize that it's finally time to close up shop and walk away when the SEC gets off its arse and finally revokes your primary company, the one which had offered those multiple teasers of that Extraordinary Super Duper Dividend. Of course, this was fully anticipated since you had all decided from day one to earmark the money normally spent on accountant fees and required SEC financial filings and to use it instead for those expensive lawyers. In hindsight, this decision was pure genius since the SEC could now be accused as being the bad guys for sticking shareholders with untradable securities.
Now, imagine being able to control potential backlash from shareholders, especially those who you know will be unhappy when the dividend distribution continues to remain unannounced, by declaring well in advance that a deal as rich as this one might take a year or longer to execute...and then assuaging them with your sincerest, cross-my-fingers-and-hope-to-die assurances that they will be immensely happy the day they finally see the money in their accounts.
That little addendum (another stroke of genius) brought with it one last, unexpected entertainment bonus: interminable message board discussions as to whether or not your revoked & administratively state dissolved company can still issue that promised dividend...when you ultimately declare it...from your "offices". Completely irrelevant to you, of course, but just one final joke for your group to laugh about on those frequent long, fully funded, first class, exotic holidays.
So to answer your question as to whether FFGO might ever trade again...
if you were one of that group...
what would be the point?
Disclaimer: Granted, some literary license was exercised to portray a few of the events. But the cold, calculated plan should be seriously considered as many of the details were taken from the company's own website while others are just rational, common sense conclusions.
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