Saturday, 22 November 2014

TTG Fintech and Investorlink $1.4bn securities fraud

TTG Fintech Limited (TUP.AX) is a $1.4bn revaluation fraud masquerading as payments clearing business. TTG listed 4m CDIs at $0.60 on the ASX in late 2012, using the services of Investorlink Securities, a company which specializes in intermediating international securities fraud. The purpose of this listing was not to raise capital for a business, and the share was never intended to be truly priced by a market. On listing the top 20 shareholders held 95% of the 635m CDIs on issue and a cartel controlled the price. The purpose of listing TTG on the ASX was to create a listed security with a manipulable "market" price set by a cartel but legitimized by ASIC. Purchasing an ASX listing "adds credibility", as openly admitted by the criminals themselves. The inflated shares can be used collateral for loans, or included in scam funds for unrealized fake "profits". Some are directly sold to small investors.

According to its FY2014 annual report, TTG Fintech had turnover of RMB0.8m in FY2014 and RMB16m in losses, which at current exchange rates corresponds to a $160K turnover and $3m loss. In the 2013 financial year TTG reported a $3.4m loss on a $210K turnover. But this is irrelevant to TTG's true purpose as a revaluation fraud. The investment cartel initially gave TTG a ridiculous $642m "market" cap and then ramped the share to its current ludicrous $1.4bn "market" cap, with these numbers guaranteed by Australian regulators to be unmanipulated. For sure, it is not ASIC's role to take action against poor shares (a straw man argument the dregulator trots out with wearying predictability). It is, however, ASIC's duty to take action against manipulated shares.

It has become common practice for market manipulating criminals such as TTG and Investorlink to issue shares at headline prices to insider associates, in flimsy attempts to justify ramped prices. The criminal insiders are first quietly issued a large amount of shares at a low price. Later and in conjunction with share ramps, the insiders are issued few shares at a higher price in a publicized sham capital raising. This higher HEADLINE price and ramp is used to attract victims, while the criminals' actual weighted cost of shares is much lower. The most blatant recent case of this market manipulation was the Panorama Synergy scam, where criminals first were issued 347m shares at $0.003, later buying 20m shares at a $0.36 in a sham capital raising designed to provide justification for a ramp. In the case of TTG, the company issued 1m CDIs at $3.05 in July 2014, to provide justification for an openly manipulated "market" price. The shares were issued to a third party comically described as "unrelated to TTG, its Directors or any substantial shareholder".

According to ASIC, this is not a ramp and a revaluation fraud but rather a magical market mystery, a fantastic occurrence for which a logical explanation just cannot be found. ASIC and the ASX have approved TTG and given their guarantee it is not a manipulated securities fraud.


  1. “The inflated shares can be used collateral for loans”

    I don’t understand who would loan this mob money based on a market cap of 225 times book with consecutive losses.

    Plus, a large part of the assets are unsecured “quasi-investments”.

    Maybe a kamikaze creditor I suppose.

    1. Ah you might be surprised, how there is always someone somewhere willing to lend someone else's money, for the right fee of course..

      I also laughed when I saw the use of the word "quasi-investments" in the annual report. Sounds so legit, doesn't it? Reminds me this other company that used the words "bargain purchase" to describe an asset in the balance sheet.

      Thanks for your always insightful comments, TheForms.