bringing down cvi price, page-32

Hi "One-up", thanks for warning me or others like me. Quick question howwill the directors be able to get away from this SCAM? Won't ASIC pick up this scam?

Hi MG

Person A buys a lease for $1 with a private company 1. Private company 1 is located in a country that does not have rigorous investment and screening laws.

Person B is director of public company 2 and gets an independant report that states that private company 1 is worth $100.

Person B manages to convince Person A to sell the private company 1 to public company 2 for $50.

The real value of private company 1 is still $1, but person B has a full audit trail showing that what they did is all above board and done in good faith.

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Company 2 however doesn't have any cash to pay the $50.

Person A is willing to be flexible however and accept payment in shares for the lease rather than a cash payment.

Company B is currently trading at 8 cents, and Person B drives a hard bargain and says that person A can have $50 worth of shares at 10 cents each - 500 shares.

Investors in Company B are happy, as they have a $100 resource for $50, and people are so interested in the company that they are willing to pay above the current share price to get in.

Person A now wants his money however and starts selling his 500 shares. To start with, the share price moves above 8 cents, but he continues selling and investors in Company B are perplexed as to why someone who bought shares for 10 cents would now be selling them for 6.

In the end, person A gets an average price for his shares of 7 cents - netting $35. They have now made a significant loss on their nominal price of $50, but a massive profit on thier initial investment of $1.

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In the end, nothing is done with the lease or company 1 and company 2 looks for a new resource - strangely enough also brokered by person A.

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As you can see, there is very little above which is easy to prosecute - with independant reports on values, how do you prove that an illegal act was carried out? Especially when you would need the assistance of countries of registration such as Belieze, Angola, Cameroon and Nigeria.

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Now fill in the blanks above:

Mark Smyth
Anton Tarkanyi, Malcom Johnson
Cityview pty ltd
Simba, Simbajamma, Fortitude, Zebra copper etc


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Company 2 however doesn't have any cash to pay the $50.