Penny Stock Company Director sues Goldman Sachs....

[AhJason]

Sorry bros. This piece of news I catch no ball.

 

So the director who took $64million loan facility from Goldman to buy stocks kanna forced-sales coz Goldman deemed him defaulted on his debt which subsequently caused the unusual trading activities of that 3 penny stocks which were subsequently suspended?

 

http://www.singaporelawwatch.org/slw/index.php/headlines/33646-third-penny-stock-case-against-goldman

 

Source
Straits Times
Date
27 Nov 2013
Author
Rachel Scully

 

Third penny stock case against Goldman

Blumont director says bank breached duty by force-selling his shares

ANOTHER shareholder caught in the trading debacle over the Blumont Group, LionGold Corp and Asiasons Capital penny stocks is suing global bank Goldman Sachs.

Mr James Hong claims the bank, which had given him a credit facility of more than $64 million, breached its duty of care when it force-sold his shares in the three firms last month.

He is the third person to take legal action against the bank.

Ipco International chief executive Quah Su-Ling and LionGold independent director Ng Su Ling, who is also Ipco's company secretary, have both commenced legal proceedings.

Recent media reports said Ms Quah had loans in excess of $61 million with Goldman Sachs.

Singapore-based Mr Hong, an executive director at Blumont, first bought shares of Asiasons and LionGold in 2007.

Last year, he received some Blumont shares in his capacity as the firm's executive director, according to documents filed with Britain's High Court on Monday.

Mr Hong had also come to know Mr William Chan, chief executive and chairman of Stamford Management, last year.

Mr Chan offered to act as an investment consultant and assist Mr Hong in procuring loan facilities from banks for his investments.

He later told Mr Hong that Goldman Sachs would be willing to extend a loan facility to him against his shares in Asiasons and LionGold.

Mr Chan also introduced Ms Quah to the bank.

Mr Hong opened an account with Goldman Sachs in February this year, pledging his Asiasons shares in exchange for proceeds he could use to buy LionGold stock.

The size of his account with Goldman Sachs was estimated at about $12.4 million then.

In September, the bank agreed to fund the cost of the 1.75 million Blumont shares Mr Hong would take up as part of its rights issue.

However, things took a turn on Oct 2, a day after the Singapore Exchange (SGX) asked Blumont to explain how its market value had jumped more than 12 times to $6.3 billion within nine months.

Mr Hong's court papers show that a Goldman Sachs representative e-mailed him a demand notice at 11.48am on Oct 2, stating that he had to repay the $64 million loan in cash by 1.30pm that same day, less than two hours later.

Mr Hong then received an e-mail at 1.36pm stating that as he had defaulted on his payments, Goldman Sachs would "exercise its rights to appropriate all or any of his assets it held" to pay off his loan.

The next day, Mr Hong told Goldman Sachs that he had obtained an alternative loan facility of $40 million from BHP International Markets in exchange for 27.4 million Asiasons shares.

Despite this proposal to pay off his loan, Goldman continued to sell his stakes in the three counters.

These transactions carried on through Oct 23, even after the SGX had lifted its designation status on the three stocks.

Mr Hong contends that Goldman Sachs had "arbitrarily, capriciously, perversely and irrationally" sold the shares even when their values had fallen by 70 to 90 per cent.

The bank continued to sell the shares even after the SGX announced that it was "apparently engaged in an investigation into the trading and price fluctuations" of the three stocks, alleges Mr Hong.

He is suing for damages, interest and costs.

[email protected]

Source: Straits Times © Singapore Press Holdings Ltd. Permission required for reproduction.

[Mustank]

when you pledge your shares as collateral for a loan, the bank will press button once the shares price drop below an acceptable range [sweat]

but if you dont pledge your shares, how are you gonna get such a huge loan leh

once you pledge your shares, will you have a motivation to ensure that the price remain above the acceptable range?

[Neost]

There is only one winner for this....... The lawyers

[Mustank]

There is only one winner for this....... The lawyers

broker and sgx

[StefanK]

broker and sgx

 

But SGX stocks have been going down leh...

[D3badge]

There is only one winner for this....... The lawyers

 

You are right lawyers big winners, Goldman sachs netural protect reputation, man big loser!

 

1st the loan facility document customer sign all cover goldman sachs liao T&C.

 

2nd collateral value fall 70% to 90% , plus investment value almost fall 70% to 90% force sell close up position by goldman sachs is a expected and guarantee move, no brainer market practice and a known fact (one can act blur choose to ignore, but fact is fact sure force sell). stock value fall too fast goldman sach give 2hrs is expected. eg. real war you think SAF issue 2ntn or 4, 6 ntn to recall all reservist?? urgency is the word.

 

3rd can only say this person kena con by his lawyer give him false hope to win goldman sach thus lawyer have a case to fight and make $$$ regardless of outcome.

[Rncw]

up or down, also got people making money one

[Karoon]

A perfect exit would be to pay off the loan when his collateral shares were 9x its original value..

 

Surely he knew the rally wouldn't last.

No insider to warn him of suspension..

 

Which only means sgx is not corrupt :)

[Enye]

never trust banks....

 

esp for those who believe banks will never make margin calls when their property value drops drastically despite borrower never defaulting on loan repayments

 

[Freestylers09]

every few years sure got this stunt out one la..

 

biggest casino in Singapore..LOL

[1fast1]

Margin calls are nothing new. People should not overleverage, it's that simple.

 

But googling around this, I'm more interested in the SGX-Bluemont saga. First they imperiously queried the company when they felt it was overvalued. When the stock crashed as a direct result of this investigation, they put a stop to short-selling so people couldn't even make on the down slide.

 

What exactly were they thinking?

[Galantspeedz]

Correct me if i am wrong but based on the article, it seems that the loan was recalled when the price was at a high rather than when it was dropping?

 

wonder did any brave soul take a huge katek position just before the saga

[Freestylers09]

Correct me if i am wrong but based on the article, it seems that the loan was recalled when the price was at a high rather than when it was dropping?

 

wonder did any brave soul take a huge katek position just before the saga

 

 

if i know can move from 3c to 250+ after rights and dip 90+ %

 

like this got 19500%? only if i know..LOL,shake leg now liao if..LOL

[Myxilplix]

He never visit MCF obviously. Or else he will know not to take loan, full cash only

[Hydrocarbon]

 

 

if i know can move from 3c to 250+ after rights and dip 90+ %

 

like this got 19500%? only if i know..LOL,shake leg now liao if..LOL

 

If know, everyone also at home shake leg liao.. Then for MCF-ers, Lambo and Ferraris are BnB cars.. Need to buy Pagani or Koenigsegg to be atas class..

[Jman888]

新加坡交易所在寻找一名未索取120万元股息的股民！但这名投资者是男是女？多大年纪？什么国籍？还在世吗？新交所说，由于未能联络上，无法获得授权，不能透露这名百万股息未领的股民身份。

 

 

 

one investor never claim his $1.2 million dividend ??

[Freestylers09]

 

If know, everyone also at home shake leg liao.. Then for MCF-ers, Lambo and Ferraris are BnB cars.. Need to buy Pagani or Koenigsegg to be atas class..

 

 

pennies stock become bluechip is not possible lol

 

all u need is just push ..lol

[Little_prince]

 

 

pennies stock become bluechip is not possible lol

 

all u need is just push ..lol

all you need is Charisma!