Quindell PLC. Where are the writs?

Writs?

Rob Terry of Quindell (LON: QPP) is openly being accused of fraud and running a Ponzi style company these allegations are all over the internet on various financial websites as well as social media such as twitter. The FCA & the QPP Nomad, as well as their legal advisors, are all fully aware – why has Quindell PLC not taken legal action? Is it because it is all true?

I have also branded Quindell PLC as ‘rotten to the core’ and riddled with fraud.

Gotham City made damning allegations about Quindell. Rob Terry said he would take legal action but I can tell you ALL EXCLUSIVELY that no papers have been served. Tom Winnifrith has accused Terry of fraud more times than I have had hot dinners. Again no libel papers have been served. So what does that tell UK Investors? Quindell is rotten to the core. I have spoken to Tom on numerous occasions and I know that Tom is dying for Quindell to sue him not least because the disclosure process would be a scream and he would take Terry apart in Court.

Rob Terry knows that if he was to issue a letter before action then he would have to carry through the threat, which would hand victory to Tom & Gotham. If Terry wants to issue a writ then please add my name to it. So let me explain.

The fraud is simple. Tom Winnifrith has already shown how on numerous occasions Quindell cash was used to buy shares and whole companies of no value from pals of Rob Terry including Quindell’s lawyer. That is a misappropriation of funds. Fraud plain and simple.

Now to the Ponzi.

Today Tom Winnifrith unearthed HERE (http://www.shareprophets.advfn.com/views/7257/quindell-red-flag-of-the-day-it-s-a-big-one-tmc-southern ) Quindell has issued 240 million shares to a firm called TMC which – despite being on a lock in – TMC had sold in 2011. We know that it used at least £2 million of the proceeds to send to Quindell which Quindell promptly booked as profits and operating cashflow. I am sure that it sent a whole lot more and that in fact TMC accounted for at least all if not more than all of Quindell’s operating profits and cashflow. And it was only able to book that business and pay for it by flogging the shares Quindell gave it for free. That is called a Ponzi.

On the back of those fraudulent profits for 2011 Quindell issued shed loads of shares to both investors to raise cash and to buy other companies. Since then reported profits have grown rapidly. Operating cashflow rather less rapidly. The Ponzi has continued in three ways:

1/ Quindell has bought numerous shit companies. The best of them make tiny profits but Quindell has grossly overpaid. But it is at least a bit of profit.

2/ Quindell has ‘accrued’ for vast amounts of revenues. That means it has booked sales for which it has not even invoiced simply because Rob Terry reckons they will come in. It was aggressive accounting of this sort that did for him at The Innovation Group. (TIG) This year almost £300 million of £800 million forecast sales will be accrued. The problem is that as each year goes by some of last year’s accruals are shown to be dodgy so you have to do even more accruals this year to offset the writebacks and to keep earnings growing.

3/ But accruals do not generate a penny of cash. So what Quindell has done on an ever bigger scale is to issue shares in Quindell to companies to take a 19% stake. The company (PT, Himex, Ingenie) then sells these shares and uses the cash to place orders with Quindell. Then Quindell buys the other shares from vendors who Rob Terry has known for years. On their personal shares the vendors are all locked in but most have sold nearly all their shares. They now this is a Ponzi. As with all frauds you have to keep doing things on an ever bigger scale to keep the ball rolling. On Thursday Quindell will announce cracking interims. Of course it will. This is a fraud and a Ponzi and the reported numbers mean nothing.

Go on Mr Terry sue for libel. Sue Tom, sue Gotham, sue me. If you Rob Terry genuinely believe that you have been libelled then you should issue writs. It’s as simple as that. Because I’ll tell you this; We all not only believe you are a fraud but we have the evidence in spades to prove it. It is our collective ‘honest opinion’ based upon evidence published and evidence yet to be published. I tell you now that if you issue writs nothing will change the hell and fire will continue to rain down upon you. You will be ripped to pieces in the High Court. And you and your advisors know it.

In due course it may be another sort of court that you may well find yourself in…

As for the cretins attacking those that are shining the light of truth on the Quindell (LON: QPP) story, particularly Tom Winnifrith, (who I often disagree with) on a personal level in an ever nastier way via death threats etc. ( I see it was blackmailing ADVFN to sack him today), it will not save the Quindell share price. May you have the plank pulled from thine eyes! Failing that rot in hell.

Yours to a cinder

Dan