PET (ASX) Phoslock going forward

Originally posted by Mickem: ↑

Hi Kev
no i haven't but haven't ruled out any action at this stage. i few points i might differ on are
at the time of directors selling shares i don't believe LF and RS had any idea of the fraud or false contracts so i don't hold that against them, yes the Chinese director probably knew but i can't see asic being able to do anything with them.
with the cap raising i still don't think LF or RS had any idea of the problem. should of ? but didn't . did they fail by not knowing yes but was they selling the cap raising knowingly the reasons was false i don't think so. yes the Chinese involved in the fraud knew it was false.
the part i still don't understand was why was the Chinese directors putting money back into the cap raising ? did they think they would be able to carry on longer with false contracts and not paying for work done ?
so my thinking is do we chase LF, RS and BS if they didn't know , we was all fooled not just them, so understandable , my thinking is yes we could chase them but only if it was clear they should of found the issues which if the auditors still haven't been able to then it might seem understandable they didn't.
RS had sold most of his shares i'm most disappointed with him in this. LF yes sold shares but still has heaps i don't see him as having idea of the problem, he has been caught up as much as us .
i know my thoughts aren't what people want to hear but just how i see it, hard to have a go at someone like LF who has given a lot to the company and i'm sure will continue to with his holdings ( i don't think he will be dumping shares ) when he did not know.

mickem

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Mate, your thoughts are your own and you are entitled to them regardless if others like myself disagree, no need to apologise for them.

I would however like to question your thoughts on the timing of these events e.g. pump - private sell off - cap-raise - downgrade of financials shortly after - followed by accusation of fraud - followed by his retirement etc.

To my view they all happened far to neatly for coincidence, maybe just maybe it was really bad luck or timing for LF as you say but 2 other items don't sit well with me that make believe it's not bad timing:

I know for a fact the two Chinese directors wanted out of PET circa 7-10 months before the cap raise took place but were asked to stay until suitable replacements were found (I know a few guys that deal directly with ZZ still) and they were not told about LF's big dump of shares prior to, which they were sour on and I can understand why (these things made them expendable)
after all of the of the extra expenses of additional forensic audits and correct me if I'm wrong here but we came up with 2.2mil of suspected fraud only?!

I am nowhere near the financial standing of these directors but even I wouldn't waste my name on 2.2mil of suspected fraud when rationed out to a few parties.

Plus the idea of LF not wanting to end on a sour note by dumping shares fraudulently when he had given "a lot to the company" as you say, is actually further motivation in my eyes for him to do it... my bet is on him feeling like the company owed it to him and it was his last hurrah before retirement, old boys with bitter egos in my experience that feel the world owes them a thing or two, often jump to cunning rouses to justify their tenure.

But hey, just my 2 cents, and it may actually only be worth that too