Wednesday 26 February 2014

OMI Holdings (OMI.AX) launches new revaluation fraud

OMI Holdings (OMI.AX) is a failed investment company, headed by operators with unparalleled skill at shareholder value destruction. After unsuccessful ventures ranging from medical products to graphite mining, OMI reported accumulated losses of $41m in its latest half yearly report to December 2013. OMI was seemingly approaching the end of its misery. The same report revealed OMI had net assets of $281,917, most of it in cash. OMI had 14m near worthless shares outstanding, suspended from trading on the ASX.


But OMI still had value as a vehicle for securities fraud. Today OMI announced it was buying iSentric from Donaco International (DNA.AX), by issuing around 252m shares. This iSham transaction would price iSentric at $12m, and thus engineer a value for OMI of $14m out of thin air. The fraudulent transaction thus instantly turns less than $300K into $14m for the criminals running OMI.

For their part, the operators of DNA purchased iSentric for $8.5m in June 2013, naturally using inflated DNA shares. The sham transaction with OMI thus creates $3.5m in fake profits, constituting a 41% book gain for the criminals running DNA, as boasted in an ASX announcement. A single shareholder controls 66% of the 377m DNA shares outstanding. DNA's recent grotesque ramp, share issuing and scrip acquisitions are reminiscent of the Blumont scam.


According to ASIC this is not a ramp, but rather a magical mystery, in a market ASIC does a great job regulating. Meanwhile, the yawning chasm between ASIC's self-perception and reality continues to widen, making any meaningful reform yet more unlikely.
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3 comments:

  1. The Central Scrutinizer27 February 2014 at 10:39

    So is OMI hoping to sell its new issue to outside suckers, or straight to OMI in return for iSentric?

    And what is iSentric, the equivalent of Alcyone, i.e. fraud?

    ReplyDelete
    Replies
    1. Dr Benway27 February 2014 at 13:33

      iSentric is purportedly in "mobile technology", but what it does is not of importance here, it could do literally anything (or nothing) and still function as a vehicle for this securities fraud. The iScam inflates book values for both buyer and seller. The operators of OMI get a company with "assets" of $14m, while DNA can report a "profit" of $3.5m.

      Most of the $250m shares will go directly to DNA. However, it is virtually guaranteed that, at some later point, OMI will attempt to issue shares based on its cooked books. This is after all the whole point of an ASX-listing: it is a license to issue shares to the public, and you can use as fraudulently cooked books as you wish.

      Delete
  2. The Central Scrutinizer27 February 2014 at 10:40

    That should be "or straight to DNA.......?"

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