"All roads lead to one conclusion"
Thanks for the welcome okvestor.
As far as I can see there are several issues here:
1. The money. Was it ever there?
2. Who is RICS asset management?
3. If they are a hedge fund, where are they regulated?
4. How can an agreement suddenly appear, out of the blue, something that materially affects the company and under whose advise/watch was it never disclosed (bearing in mind material disclosure laws that exist in the US as well as Europe)?
The logical answers, in my view, are as follows (and this has been done in the past successfully by Cole and Co.):
1. No money existed. Accounts were overstated to boost the balance sheet and lure in investors. This in turn allowed Cole and Co. To sell more stock to unsuspecting investors.
2. RICS, in my view, must be a shadow company. There is NO way any asset management company/hedge fund can be allowed to operate in the US or in Europe without being regulated. Moreover, it is a serious breach of fiduciary responsibility on the part of a company's officers to invest company money in an unregulated financial institution.
3. RICS must be an affiliated (undeclared) company to Cole and Co., it would only be logical to assume so.
4. The "miraculous agreement" that emerged after being hidden for so long as soon as monies were "missing" then "invested" MUST have been made up as soon as they realised that this is getting serious. And miraculously (read conveniently) it seems that this agreement shows the money was never EGMI's.
It's all too convenient. The only losers are shareholders. I for one am happy to make complaints to the SEC and I would also urge you all to make a comlaint to the FSA of the UK. Cole is British and his companies are probably regulated there and it would mean a lot more if he was hounded in Europe too... Closer to home!
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