Now that the play by play is complete, time for the Cornhuskergold game summary, Part 1:
The day was broken into two major pieces, the Medinah stuff in the morning, Auryn in the afternoon. The morning stuff has been reported in quite a bit of detail. But a few extra items:
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Medinah has hired Holland and Hart (Las Vegas | Holland & Hart LLP). Attorneys J. Stephen Peek (J. Stephen Peek | Holland & Hart LLP) and Holly Stein Sollod (Holly Stein Sollod | Holland & Hart LLP) appear to be the primary legal resources assigned. There was a long meeting between the Medinah BOD and H&H yesterday in Vegas. H&H will be hiring an independent forensic investigator to figure out the details of the extended and extensive share fraud. But suffice it to say, today Les was explicitly under the bus and thumping away as the bus traveled at high speed. It is claimed that the retainer for H&H is being paid by “friends of the company” for now, with clear implicit reference to Greg. There was some opposition to this arrangement but until other funding comes from production or other sources it stands as a sort of “bridge loan” without interest in order to get the investigation underway.
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New news was the return of 1.7% of Auryn (part of what was owned by NUOCO via Greg), 100M common shares, and 1.6M preferred shares by Greg and Vittal. Greg spoke briefly and emotionally when asked if he wanted to address the group.
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There was a brief recounting of events and how they went down in August. The meeting in Miami had already been called to discuss settlement of debts claimed as outstanding against Medinah by multiple people when the news broke. The meeting resulted in Greg and Les canceling about $4.4M in debt claims against Medinah without any agreements or promises being made by Medinah. Everything fell apart for Les when Gary managed to get share numbers directly from the TA, without them passing through Les. Les explicitly admitted to changing the numbers in e-mails that would come from the TA which he then forwarded to everyone else.
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The investigation was repeatedly compared to “peeling an onion.” Others besides Les could be implicated. It was explicitly stated however that there are fake resolutions supposedly coming from the Medinah BOD with forged signatures sent to the TA authorizing issuance of shares. That is pretty hard evidence. Also documents available now back to 2010 show that the share count was already way above what was reported as official at that time. So the implication (without proof as of yet) is that this has been going on for years. it was also stated that at the time Auryn negotiated the 1.5B share cap on the purchase agreement, the count was already above 1.5B.
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It was stated that Hackney has already ended his relationship with Medinah and eventually the relationship with the present TA will be ended.
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Maurizio stated explicitly that they did not know about any of this up until the day it broke and then was reported. He said they received the same “haircut” as everyone else.
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A very brief comment was made as part of the ongoing presentation that there may be litigation between Masglas and Juan over the sale of his MDMN shares. No details were given.