Ann: Letter to Shareholders - Update on Fraud Investigation, page-26

Yes, I know this. I'm definitely not trying to say Aaron is blameless or should remain. Quite the contrary.

Listening to AD's advice is a little different to using a company your sister and AD are directors of to funnel funds out of IOU though, isn't it?

I really don't think he knew what was going on.

1) Up until the request to pay the 2nd tranche I don't think anyone really knew the 7 million wasn't there including Aaron and probably even Ken's mates.
2) It's not Aaron's job to audit the B2B loans, and so in what way could he have known they were to Ken/ AD related entities? He's not the CFO
3) Do you think AD is unaware of how the 900k loan makes Aaron look? Why else would it be offered. AD has a long history of this kind of stuff and knows exactly what shareholder sentiment towards it would be.
3a) Consider how bad it makes Aaron look for him to default on the loan as per its schedule. Why would not have AD demanded Aarons 3 million shares at the time they were actually worth the balance of the loan? I don't think "because Aaron is in on it" but because AD knows how much worse it makes Aaron look.
4) Play devils advocate for Aaron for a moment. Here comes Ken - your CFO's - friend AD who says the right things. He basically helps - in the background - your company facilitate a placement which gives you enough cash to do what you actually want. AD's advice delivered the cash. That gives people a very strong bias toward trusting them. So, on the one hand, while it's a conflict of interest/ legally questionable for Aaron to make his shares in IOU the collateral for the loan, you're going to believe AD/KK who got your company over 60 million in funding when they say it's legit. Most people are not that financially literate.

Do you think AD gets into these types of positions over and over again because he is bad at being a con-man? He is clearly very skilled.

Also, take a look at the time line.
They got 1.5 million july 2020
https://hotcopper.com.au/threads/ann-icu-confirms-1-5m-institutional-placement-commitments.5491374/
Ken and co appointed to board later that month after ousting Sean Tam. I have to assume that the 1.5 million somehow occurred due to Ken's involvement.
https://hotcopper.com.au/threads/ann-director-appointment-resignation.5530607/
November that year they get 10 million
https://hotcopper.com.au/threads/ann-successful-capital-raise.5743799/
Then feb 2021 they get the 50 million.

Just seems to me that the common thread in the getting money phase is Ken and Co. AD is also much more tied to Ken, despite what Ken might say.

I find it hard to believe that Aaron is on board with what amounts to Ken and Co gaining 19 million au for a mere 900k in his own pocket, given how relatively little money the company had really managed to raise previous to that. Maybe I'm missing something? Can you connect Aaron to AD before July 2020? I haven't been able to.


Like I said. I'm not defending Aaron in the sense "he should be allowed to run the company". He did not do his due diligence on the people with their fingers in the kitty, or his duty to the company IMO. I just don't think he is a thief.