Why is everyone so quick to assume Les is the seller? And why does Auryn and Masglas seem to have little or no interest in picking up shares at this price? They know better than anyone the long term potential, even with the outstanding share debacle…
So what I want to know is, where did the money go for the 1.5B shares that were illegitimately sold?
I’ll volunteer my ignorance here but doesn’t a company issue shares to raise money? So shouldn’t those sold shares have generated money back to the company?
If, the average share price for all 1.5B shares was $0.03ps through the averaging down of selling to sub penny then that would have yielded on the neighborhood of $45M, right? Fine for LP to “forgive” a measly $3.8M when pocketing a ten bagger plus. What could those phony resolutions have possibly aughorized to see all the proceeds from the sale of shares not go back to the company?! As an investor, that’s a hard debt that has been incurred without the benefit of the proceeds!! Not to mention the costs to the company for having to recover whatever the going share price is to buy back and cancel those shares, after whatever can be salvaged through the forensic audit and legal maneuvers.
I’m encouraged, hopeful and optimistic about the long term prospects of this investment, but not without or at the expense of the immediate outrage and ignorance for the lack of information to make sense of the fraud that has just been perpetrated.
What am I missing?
On August 23, 2016, MEDINAH determined that there have been ongoing share issuance discrepancies with what was reported on MEDINAH’s 15c211s regarding the actual outstanding shares…
Although the investigation is not complete, it appears that the representative of Medinah Mining Chile was engaged in the sale and/or allocation of primary shares without the knowledge of past and present Directors and Officers of the Company. Additionally, it does not appear that these inappropriate transactions were for the financial benefit of MEDINAH.[1]
The speculation that was being discussed in private is that Les had a mechanism to get people to write checks to one of his own private companies, potentially unknowingly. Les had one company that was named in a way that made it easy to mistake for Medinah Mining Chile, “MMC Mines”. Nothing has been publicly disclosed on this topic other than the above which explicitly states Medinah Minerals never saw the money from any unauthorized share sales.
“Where did the money go?” To find the answer to that question is why the law firm and forensic investigators have been retained.
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Les is a very sharp ConMan and we must assume that he has put shares in other entities or friends to sell on his behalf?
Well, if that’s the case, then the people who “bought” those 1.5B shares from Les DO NOT OWN legitimate MDMN stock and therefore should not be counted against the total share count. If they all got hoodwinked into buying fake shares from Les, well, sucks for them, but it should not be our problem.
Vark
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After seeing MDMN bounce off .8 of a cent today I ran some calculations to figure out how much my $1500 I invest every month could help bring down my cost basis at that price. Not as much as I was hoping it would…maybe if we drift into the less than half a cent range I can warrant throwing more money at this one. In the mean time there are plenty of other much more reputable mining companies to invest in.
MDMN has been a costly introduction to mining, however over the past 4-5 years I’ve gained a wealth of knowledge and an introduction to a sector I never really knew existed. Hopefully more rational and prudent investing in the upcoming metals bull markets will more than make up for any losses I may have to take from MDMN
Not there…
I am totally shocked that Les is still walking around. If he has pretty much admitted to selling phantom shares, to the tune of $40+ million, then WTF? Because he didn’t use a gun, he’s able to walk free? Blows me away! This is like Bernie Jr. They need to put him away so far they’ll have to bring him light in a bucket!!
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Bothers me he has all this time to move assets and cover the trail. Hopefully he got really sloppy when he got really greedy
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Great Post!! These shares were fraudulent and should have not been sold in the open. Therefore why does it count against The outstanding shares?? The people that les sold to should be the ones going after him not us.
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I agree, sucks for them; however, it is our problem. Based upon your statement you do not know who may have bought the fake shares. My guess is MDMN doesn’t know either. How does MDMN find out who purchased? And for how much? Where any of the Day’s involved in these sales? It’s why MDMN has to do a forensic audit of the shares from the clearing house, and potentially file lawsuits and conduct discovery to secure the info to allow MDMN to go to these people and claw back the shares. I don’t see Les or any other person voluntarily providing MDMN info and documents which MDMN will use to claw back the shares. It’s like buying the rope and tying the knot to hang yourself. IMO, only way you get the info and docs will be through some sort of discovery/subpoena process. This process will take time and cost some $$. It’s why I have advocated for MDMN to hit the insiders hard to claw back some shares in exchange for some leniency. It’s a way MDMN can get the info and docs on these other persons and transactions without having to go through the longer and more expensive legal process regarding discovery. IMO, it will also allow a more quicker claw back of shares, helping our image and bottom line.
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First these shares are not fake! They were illegally obtained and under false pretenses from the TA, but they are real shares. The Les part in this should be more easy to prove that he forged documents and illegally sold share and pocketed the money. What may be more difficult to prove is whether or not those that acquired these shares knew or were a party to the illegal action. My guess is if they held onto the share they were unsuspecting and if they sold the shares immediately they were probably part of the illegal activity. JMO
And what if they are continuing to sell shares?
If the shares are already in street name at this point there is little that can be done to stop these shares from trading… I am not a SEC lawyer, but I believe If the shares are still held in the private party names that they may be able to get the TA to stop issuing street name certificates and/or if there are restrictions on the shares they could get the TA to stop lifting restrictions if it can be proven these shares were illegally obtained, Just a guess on my part.
I like the following general statement from Wikipedia. I’m not sure of the logistics of returning the goods to the owner - I can see a couple of solutions.
"Possession of stolen goods
Possession of stolen goods is a crime in which an individual has bought, been given, or acquired stolen goods some other way. In many jurisdictions, if an individual has accepted possession of goods or property and knew they were stolen, then the individual is typically charged with a misdemeanor or felony, depending on the value of the stolen goods. If the individual did not know the goods were stolen, then the goods are returned to the owner and the individual is not prosecuted. However, there are often exceptions, due to the difficulty of proving or disproving an individual’s knowledge that the goods were stolen."
I am concerned about the statute of limitations on some of these transactions. I think some are very old. I hope our attorneys hurry.
When did JJ finally agree to be bought out compared to the fraud discovery? Did he have knowledge of shares Les had taken and finally bailed because he knew the shares he owned were going to be subject to a giant haircut? I wonder if that played a part in his finally getting out of the way.
MEDINAH Announces Management and Director Changes
October 18, 2016
The Board of Directors (the “Board”) of MEDINAH Minerals, Inc. (MEDINAH) is pleased to announce the appointment of Kevin Tupper as President and Chief Executive Officer of MEDINAH effective immediately. Mr. Tupper will also serve on the Board. Gary Goodin, the former Chief Executive Officer and President, remains on the Board and has been appointed Chairman of the Board.
In support of MEDINAH’s desire to limit any further dilution and improve its capital structure, Mr. Tupper has agreed to serve as a volunteer while MEDINAH reduces its expenses and seeks to achieve a positive cash flow.
Below is a brief biography for Mr. Tupper.
Kevin Tupper
Kevin Tupper is currently a Senior Architect & Application Project Manager for Dimension Data. He is a technology entrepreneur with ten years experience at the C-level including being the founding Chief Technology Officer (1995-1999) for EZLinks Golf, now a PGA TOUR affiliated company. Mr. Tupper currently serves on the Board of Directors of Children with Disabilities Fund International and is a former board member of Fauquier Community Theatre, serving as Treasurer and successfully guiding the non-profit company through an intensive IRS field audit.
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Congrats Kevin!!
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Nice to see a well known, trusted shareholder take over who has been here since the beginning of time, has shared all our pain and suffering and certainly can be expected to make sensible decisions on our investment going forward. It helps that he also enjoys a good relationship with Auryn and doesn’t have any conflicts of interest related to the past sins of Medinah.
Good luck Kevin!
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