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CREST to Announce Cancellation of CREST Facility
22 March 2009
CREST have informed the Langbar Action Group that they are sending out the notice of cancellation of the CREST facility on 27 March 2009. This will then take effect two weeks later on 10 April 2009.
The two week delay is to allow market participants to finalise any matters relating to the shares which will no longer be capable of CREST settlement.
It will be up to the individual brokers to agree terms with the market counterparties, specifically the market makers and shareholders. The broker should notify both sides that the trades can longer be completed within CREST as the CREST facility has been terminated.
As a consequence, any shorted share trades are permanently frustrated contracts and as such, should be terminated under law. Although the Stock Exchange rules state that failure to deliver does not mean that the contracts can be repudiated, if the contract is frustrated, it cannot be completed and the shareholder can if necessary apply to the courts to have the contracts rectified.
As a result, the funds in the CREST accounts should be returned to the shareholders, including any commission or charges, as if they had not taken place.
Shorted shareholders should either get in contact with their brokers, or have their solicitors write to the broker concerned, requesting a full refund of all charges including commission and stamp and that this should be effected within the next 2 weeks.
If the broker fails to refund 100% of your money, you should contact your solicitor and consider bringing a legal claim to have the funds returned to you.
Major News - 6 arrests in Spain by Spanish Authorities
28 January 2009
This morning the news was released that the Spanish Authorities working in conjunction with the Serious Fraud Office managed to arrest 6 people in connection with the Langbar International fraud. One of these was Argentine and the others Spanish. It is believed that the Argentinean is Abraham (Avi) Arad (Hochman), former head of Lambert Financial Investments. the company that ‘bought’ the majority of the shares when Langbar listed as Croiwn Corporation on the AIM in 2003.
One of the others is believed to be Diego Magn, who was prominently mentioned during the legal proceedings of the Langbar International v Marius Rybak case in the High Court from November 2007 to April 2008.
It was reported in court that Abraham Arad and Lambert Financial sold the majority of their shares, most of which they had not paid for and reaped millions of pounds at the expense of British and German investors. Whilst Langbar was listed on the AIM, the shares were also traded on the Frankfurt exchanges too.
The extradition proceedings may take place during the coming weeks and will probably be covered in the press. Avi Arad has already been sentenced in absentia to two sets of 6 months in prison for contempt of court. So it is unlikely that he would be released on bail.
Although the SFO is remaining tight-lipped about the arrests, more are expected by the shareholders. Several of the participants are located in Monaco and Lugano, Switzerland. There may even be arrests in Argentina, Brazil and the United Kingdom.
The Langbar fraud is certainly very newsworthy. It was explained in court that this fraud had all the elements of an international sting just like the film of the same name. Fake offices were even set up to fool executives that the investments existed, but the crime was detected on several occasions. Firstly by the corporate attorney in Bermuda and subsequently by the bankers in Switzerland and their investigators in London.
The Langbar fraud was an attempt to steal hundreds of millions of dollars of investment, initially from banks and then subsequently hedge funds. One well known American hedge fund came periously close to losing $200m, but thanks to the due diligence of their staff, the fraud was spotted at the last minute and they avoided being a victim. When that failed, Langbar became a pump and dump fraud on a massive scale. Over £85m was beileved to have been stolen from small private investors and Institutional fund managers alike.
Langbar was a sophisticated fraud, but not difficult to detect, when you knew what to look for. This is not a case of investors failing to do their homework. This is a case of investors and the market being deceived on a massive scale. It was the duty of the advisors to spot the mistakes by the fraudsters. The signs were there, but they failed to detect them. Nabarro Wells was fined £250,000 for breaching their duty under the Exchange rules.
We can expect more news in the near future, so keep watching.
Message to Langbar Spread Bet Holders
27 April 2008
The recent settlement agreement of £30m might be of significant benefit for any person that had a spread bet position in Langbar.
If you agreed a repayment plan to pay off the debt over time, then you need to consider contacting the SB provider and possibly agreeing a moratorium on further payments.
If you paid your spread bet debt in full, then you need to contact the Spread Bet provider and remind them that the recent settlement equates to a share value of 28p. So if you paid your spread bet as if the finish price was 0p, you are now owed a significant sum of money, based on the revaluation.
It is unlikely that the Spread Bet Provider would make any payment to you at this stage. Whilst they might agree to suspend any repayment plan, the Provider will probably want to wait and see the final value of the company when the management declare the recovery completed.
The estimated shareholder losses equate to £85m+, not including the legal and administrative costs.
If the company managed to recover all the shareholder losses, then this would equate to an average share price of (£85m/107m shares) 79p. So if you purchased your bet at a lower price, you would be expecting to see some profit.
However, the Spread Bet Provider may have agreed certain conditions with the customers. This may include a limited life for the Spread Bet. I know that some were told that the bets would last for 2 years after February 2006 and be treated as total losses. So if there was any repayment by the company, then that would be matched by the SB provider. Some of the SB providers extended the lifetime of the bets, but you need to check with your individual provider.
The SB provider may state that any repayment by them would only match an actual repayment by the company. As you all know, the Scheme of Arrangement provides for a payment of 25% of the NAV (Net Asset Value) after repayment of Creditors and only if the NAV is greater than £10m. This value has not yet been determined. If you did pay your SB Provider as if the Bet was a total loss, then you would be able to claim an amount proportional to the Langbar payout, provided that your bet agreement has not expired.
It is important that you check the status of your agreement with your SB provider and make sure that they are aware of the recovered funds or any pay out by the company, so you can claim what you are owed.
Court proceedings update
21 April 2008
To All Shareholders,
The Directors of Langbar International Limited ("the Company") are very pleased to announce the successful conclusion of the proceedings against Mariusz Rybak, Izabela Rybak, Magdalena Rybak, CMC Crown Management Limited and SCI Atol ("the Rybak Defendants").
This morning (21 April 2008), after 56 days of trial, Mr Justice Blackburne approved an Order under which the Rybak Defendants have agreed to pay to the Company a sum amounting to about 30 million in settlement of the Company’s claims. This represents substantially the whole of the Rybak Defendants’ assets after payment of their legal costs. Part of the payment will come from the sale or mortgage of their residence in Monaco; a further sum may be payable to the Company depending on the proceeds received on any sale. The Order brings to an end the proceedings which were commenced against the Rybak Defendants in early 2006.
Proceedings are still pending against Abraham Arad Hochman, Jean-Pierre Regli and Lambert Financial Investments Ltd. The Company is pursuing those claims and has obtained a short stay to consider how best they can be advanced. The Company is also investigating other avenues for recovery, including against its former professional advisers and against associates of Mr Arad and Lambert. It is hoped that further significant recoveries for the benefit of shareholders will be made in due course.
The Company instructed Jones Day. together with Ali Malek QC and David Quest (3 Verulam Buildings), in the proceedings against the Rybak Defendants and continues to instruct them in seeking further recoveries. The Company will be making a more detailed announcement to shareholders shortly.
Yours sincerely
David Buchler
Chairman
Langbar International Limited
UK Office:
12 Curzon St, London W1J 5HL
Reg Office: Thistle House, 4 Burnaby Street, Hamilton HM11, Bermuda
Reg no: EC33737
Tel no: 00 44 (0) 20 7647 9900
Fax no: 00 44 (0) 20 7647 9911
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Wednesday 16 April 2008
At half past 10
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Tuesday 15 April 2008
At 10 O’clock
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Monday 14 April 2008
At half past 10
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Thursday 10 April 2008
At half past 10
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Wednesday 9 April 2008
At half past 10
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Tuesday 8 April 2008
At half past 10
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Monday 7 April 2008
At half past 10
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Tuesday 1st April 2008
At half past 10
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Wednesday 19 March 2008
At half past 10
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Monday 17 March 2008
At half past 10
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Friday 14 March 2008
At half past 10
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Thursday 13 March 2008
At half past 10
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Wednesday 12 March 2008
At half past 10
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Monday 10 March 2008
At 10 O’clock
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
to be held at
Withers LLP, 16 Old Bailey, London, EC4M 7EG
Before MR JUSTICE BLACKBURNE
Monday 3 March 2008
At Three O’clock
Unrobed
FOR VIDEO CONFERENCE
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Thursday 28 February 2008
At half past 10
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Wednesday 27 February 2008
At half past 10
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Wednesday 20 February 2008
At half past 10
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Tuesday 19 February 2008
At half past 10
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Monday 18 February 2008
At half past 10
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Thursday 14 February 2008
At half past 10
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Wednesday 13 February 2008
At half past 10
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Tuesday 12 February 2008
At 10 O’clock
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Monday 11 February 2008
At half past 10
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Thursday 7 February 2008
At half past 10
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Wednesday 6 February 2008
At half past 10
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Tuesday 5 February 2008
At half past 10
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Monday 4 February 2008
At half past 10
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Friday 1 February 2008
At half past 10
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Thursday 31 January 2008
At half past 10
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Wednesday 30 January 2008
At half past 10
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Tuesday 29 January 2008
At half past 10
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Friday 25 January 2008
At half past 10
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Thursday 24 January 2008
At half past 10
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Tuesday 22 January 2008
At half past 10
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Monday 21 January 2008
At half past 10
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Friday 18 January 2008
At half past 10
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Thursday 17 January 2008
At half past 10
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Wednesday 16 January 2008
At half past 10
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Tuesday 15 January 2008
At half past 10
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Monday 14 January 2008
At half past 10
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Friday 21 December 2007
At half past 10
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Thursday 20 December 2007
At half past 10
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Wednesday 19 December 2007
At half past 10
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Tuesday 18 December 2007
At half past 10
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Monday 17 December 2007
At half past 10
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
30 November 2007
After the completion of the opening statements by the counsel for the Claimant, the Judge heard the application by counsel for the Defendant for a 2 week adjournment. This was to consider the new evidence and pleadings placed before the court by the Claimant.
His Lordship granted the adjournment and the court will recovene on Monday 17 December 2007 at 10:30 am
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Friday, 30 November 2007
At half past 10
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Thursday, 29 November 2007
At half past 10
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Wednesday, 28 November 2007
At half past 10
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Tuesday, 27 November 2007
At half past 10
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Monday, 26 November 2007
At half past 10
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Friday, 23 November 2007
At half past 10
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Thursday, 22 November 2007
At half past 10
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Wednesday, 21 November 2007
At half past 10
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Tuesday, 20 November 2007
At half past 10
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors Pt Hd
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Monday, 19 November 2007
At 2 o'clock
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors
Langbar International on Wikipedia
13 November 2007
New entries have been made to Wikipedia - the online encyclopedia. The Langbar International story is located at the following URL:
The Serious Fraud Office entry has also been updated to include the Langbar International Fraud, as has the AIM entry and Barry Townsley. Shareholders are invited to complete entries for Rybak and the others from the material in the public domain.
Court Hearing
COURT 56
Before MR JUSTICE BLACKBURNE
Monday, 12 November 2007
At half past 10
Robed
TRIAL LIST
TLC 42/07 Langbar International Ltd v Rybak & ors
Hearing Delayed Again?
5 November 2007
Word has reached the Langbar Action Group that the proceedings of Langbar International v Rybak and Others has been delayed yet again. An application was made by Withers on behalf of Rybak, to exclude the evidence of the Demagistri’s and Michelutti. The grounds for this application were not specified, but the Chancery Department has confirmed that the earliest date that this hearing can be held is 19 November 2007.
It has also been mentioned that the Judge may require a week or so to read into the case, before the opening arguments by counsel, when the case commences for real. Given the possible delay for the application, it is highly likely that the case will not be heard before the third week of November 2007.
Given the amount of evidence, it is highly likely that the case could now extend into 2008 and that the Judge may reserve Judgement.
Nabarro Wells censured and fined by LSE
over Langbar listing
19 October 2007
Nabarro Wells has been fined £250,000 by the London Stock Exchange and labelled as incompetent for a string of listings that resulted in scandals, including Langbar.
Whilst the reputation of this Nomad, the first City Nominated Adviser to be fined, is now in tatters, many are asking why the London Stock Exchange should benefit from the £250,000, when they were equally responsible in not regulating the Nomads properly.
That fine rightfully belongs to the Langbar shareholders, the victims of the scandal and is it Obscene that the Stock Exchange benefits from it, whilst the shareholders still suffer as a result of the crime.
The Stock Exchange should be ashamed of themselves for their negligence in this scandal and others.
Court Hearing
COURT 54
Before MR JUSTICE LEWISON
Thursday, 27 September 2007
At half past 10
Unrobed
Skeleton arguments and bundles for any listed application must be delivered by 10 a.m. on the day before the hearing of the application. The Chancery Listing Office will accept them if delivered to Room WG4 in time. The papers for any urgent unlisted application (and any skeleton argument or bundle sought to be delivered out of time) must be delivered directly to the Judge's Clerk.
Further information about skeleton arguments, bundles, chronologies and lists of issues will be found in paragraphs 5.1 to 5.40 of the Chancery Guide (October 2005)
Applications
Langbar International Ltd v Rybak & ors
Cititec Associates Ltd v Clarke & Anr
Hawkes v Cuddy & ors
FSA to investigate Nabarro Wells?
9 March 2007
It was reported today that the Financial Services Authority is rumoured to be conducting an investigation into Nabarro Wells, the first Nominated Adviser for Crown Corporation, now known as Langbar International.
Nomads are required to perform various checks on the assets of companies that list on the London Exchange. This is termed Due Diligence. It appears that Nabarro Wells did not spot that some of Langbar’s key assets were actually falsified documents. This information was also missed by Insinger Townsley (Crown’s broker), Baker Tilly (Crown’s auditors) and Lawrence Graham (Crown’s lawyers) and later on by Arden Partners, Langbar’s new Nomad and broker. However, the fake ‘Certificate of Deposit’ was spotted by Banque SCS Alliance in 2004 and this fact was transmitted to the company directors.
The London Stock Exchange has recently instituted tougher standards for Nomads, including achieving “a sound understanding of the applicant and its business” and considering “any issues relating to the applicant’s country of incorporation and operation.”
Langbar was incorporated as Crown in Bermuda and listed on the AIM in the UK. It is alleged by the shareholders that the lax regulation of the Nomads by the London Stock Exchange, was primarily responsible for allowing the fraud to carry on so long and doing so much damage to the credibility of the London Markets.
Recently, one of the senior US regulators on the Securities Exchange Commission (the SEC) was quoted as saying that London's rules for share trading have created a market like a "casino". Roel Campos, a commissioner at the US securities and exchange commission, likened London's junior market Aim - the alternative investment market - to a gambling den.
Representative Action Brings Claim
Against Rybak, Regli and Langbar International
22 December 2006
Yesterday in the High Court, a group of 132 Langbar shareholders issued a writ against Mariusz Rybak, Jean-Pierre Regli and Langbar International. The claim alleges fraudulent misrepresentation and deceit. The claimants are represented by Edwin Coe solicitors and have retained both junior and Queens counsel.
Abraham Arad Sentenced to 12 months in Prison
01 December 2006
Today in the High Court, Mr Justice Blackburne sentenced Abraham Arad ‘Hochman’ in his absense to two sets of 12 months imprisonment for contempt of court.
The first set was for failing to comply with the disclosure requirements of a court order made in March 2006 and the second was for wilful defiance of the worldwide freezing order on the assets of Lambert Financial Investments and IMI, of whom Arad is a director, when Arad moved two sets of 3 million Euros (6 million total) whilst the injunction/Mareva was already in place.
Arad a resident of Barcelona and Lambert Financial Investments are two of the defendants of an action brought by Langbar International Limited, the company at the centre of the largest ‘pump and dump’ fraud on the AIM, which was discovered in 2005. Langbar already has a summary judgement against Lambert Financial in the High Court for the sum of USD $350 million.
Arad is wanted for questioning by the Serious Fraud Office, along with the former CEO Mariusz Rybak - a resident of Monaco and former CFO Jean-Pierre Regli, a resident of Lugano in Switzerland.
Notice of AGM
22 November 2006
LANGBAR INTERNATIONAL LIMITED
(FORMERLY KNOWN AS CROWN CORPORATION LIMITED)
INCORPORATED IN BERMUDA UNDER NUMBER EC33737 (THE “COMPANY”)
NOTICE OF ANNUAL GENERAL MEETING
Notice is hereby given that an annual general meeting of the members of the Company will be held at The Washington Hotel, 5 Curzon Street, London W1J 5HE England, on 22 December 2006 at 10.00am for the following purposes:
- To receive the Directors’ Report and financial statements for the year ended 31 December 2005.
- To reappoint David J Buchler as a Director.
- To reappoint Christopher R Wallis as a Director.
- To reappoint The Right Honourable Sir Jeremy Hanley as a Director.
- To appoint BDO Stoy Hayward LLP as auditors of the Company.
- To authorise the Board to establish the auditors’ remuneration.
- To amend by special resolution Bye-law 8.11 of the Company’s Bye-laws to reduce the quorum for a general meeting
of the Company to two members present in person or by proxy.
By order of the board
Stephanie J Kyme
for and on behalf of Quorum International Limited
acting in its capacity as Assistant Secretary
Registered office:
Thistle House
4 Burnaby Street
Hamilton HM11, Bermuda
Date: 20 November 2006
Results of Scheme of Arrangement Meeting
7 November 2006
Langbar International Limited – Scheme of Arrangement ("Scheme"):
Meeting of Creditors ("Scheme Creditors") held on 20th October 2006 ("Scheme Meeting").
Please be advised that the result of the vote at the Scheme Meeting was as follows:
FOR:
No of Scheme Creditors: 849
% Scheme: 99.5%
Claim Value: Ј26,304,414.09
% Scheme: 99.8%
AGAINST:
No of Scheme Creditors: 4
% Scheme: 0.5%
Claim Value: Ј48,609.33
% Scheme: 0.2%
TOTAL:
No of Scheme Creditors: 853
% Scheme: 100%
Claim Value: Ј26,353,023.42
% Scheme: 100%
Please be advised that 157 prospective Scheme Creditors opted out of the Scheme; the Company estimates that the aggregate of the Scheme Claim Values of these persons would be just under Ј2.2m.
Thank you to all those who participated in the voting process.
With kind regards
Mahesh Desai on behalf of
David Buchler (Chairman)
Scheme Meeting Held
20 OCTOBER 2006
The adjourned meeting for the Scheme of Arrangement was held at the New Connaught Rooms. All resolutions tabled were unanimously passed at the meeting. Here is the report of the meeting:
Langbar International Limited - Scheme of Arrangement Meeting ("the scheme")
Please be advised that the adjourned meeting for the scheme was held today and I can report that the resolutions tabled were unanimously passed at the meeting. Subject to adjustments and ratification by Victor Joffe QC acting as adjudicator, the vote taken was as follows:
- Votes in Favour of the scheme: 99.75% holding 72,055,147 million shares.
- Votes Against the scheme: 0.25% holding 52,328 thousand shares.
Those share holders opting-out of the scheme totalled 157 holding just over 4 million shares.
Full details will be published on the company website next week, prior to the court sanction hearing in early November.
May I take this opportunity to thank all those who attended the meeting today and participated in the voting process.
With kind regards
Mahesh Desai for and on behalf of David Buchler (Chairman)
Minutes of Meeting Disputed
1 OCTOBER 2006
The management of Langbar are disputing the minutes of a meeting held between the Langbar Action Group, Edwin Coe and Langbar International held at Lovells Solicitors on 12 July 2006.
The only copy of the minutes that had been provided to the Action Group was posted to the ADVFN Bulletin Board on 25 September 2006 at 16:31. This was also the same minutes that had been previously supplied to each shareholder in the Action Group, as well as posted to the iii Bulletin Board in July 2006.
Langbar International complained (through a letter sent by Lovells - wasting shareholders’ money) that the version on the Bulletin Board was not the agreed minutes of the meeting. However, as Edwin Coe and the Action Group have pointed out, the Langbar management can hardly complain about the minutes, as the version they have circulated is not agreed either!
After all, if the Action Group has not seen the minutes, then it has not been agreed by them and the ‘official’ version has no more credibility than the version that was posted to the Bulletin Boards.
The management of Langbar are making ‘mountains out of molehills’ and wasting shareholders’ money in the process. Therefore they can hardly complain when the shareholders consider that it is far better to Opt Out of the Scheme, than to leave their funds under the control of a management that is wasting their assets on expensive letters, when they could have picked up the telephone and sorted the matter out in a few minutes.
Management Rattled by Opt Outs
22 SEPTEMBER 2006
David Buchler, the Chairman of Langbar International Limited sent an email to the shareholders in the Langbar Action Group and placed a letter on the Langbar.com website. In this communication he said:
It is with some dismay that I have read email traffic on the internet, particularly that emanating from the Langbar Shareholders Action Group ("LSAG"). You may have become aware or indeed even seen a document entitled "Alternative to the Scheme of Arrangement for Shareholders" circulated by LSAG. It urges persons who would be eligible to participate in the Scheme to opt out and commence proceedings against a number of parties (including the former directors and Langbar) by way of a collective action. I find this very disappointing as Langbar has consulted closely with LSAG in relation to the Scheme during the course of its development. In the view of Langbar's directors a separate collective action would be most damaging to the prospects of recovery for all creditors and shareholders of the company. It is in the interests of both Langbar under its new management and its shareholders and creditors to achieve the maximum realisation of claims against third parties and to distribute those realisations fairly. The Scheme goes a long way to achieving this and I and my fellow directors would urge you to participate in it.
The document then goes on to make several misleading statements which indicate that the Langbar managment appear rattled by the growing support for the Representative Action, being coordinated by Edwin Coe and Nigel Smith of the Langbar Action Group.
One of these comments questions the success in litigation of Edwin Coe in the Railtrack case and Nigel Smith and the action against the London Stock Exchange for the Room Service Shorting Scandal. Yet the Chairman fails to mention that the case against the London Stock Exchange is now in the Appeal Court and not concluded, whilst Edwin Coe have had some recent high profile successes with Yoomedia, the Resort Hotels case, the Soccer Boiler Room case and the NISA case - all of which can be read about in the quality financial newspapers.
It is a pity that the Langbar management have to stoop to slurring the reputation of the advisers to the shareholders. Particularly when these advisers were giving their time and effort pro-bono - for the benefit of the shareholders - whilst in contrast, the management agreed a massive bonus and pay structure for their own work and that of Lovells and Jones Day the TWO sets of (expensive) lawyers employed by the company.
David Buchler closed the letter by urging shareholders not to Opt Out of the Scheme of Arrangement. Yet the numbers show that more and more investors are unhappy with the composition of the Scheme and are voting with their feet to Opt Out and join the independent shareholders taking legal action for recovery of their own money.
Scheme Letters
08 SEPTEMBER 2006
Letters were sent to all Scheme Creditors from David Buchler, along with the Scheme of Arrangement and relevant forms. Copies of all documents are available on the Investor Relations page of this web site. There will be a Scheme Meeting on 6 October 2006 at 10.30am at The New Connaught Rooms, Great Queen Street, Covent Garden, London.
Revised Opt Out for Scheme
08 September 2006
A revised version of the Scheme has been written to ensure that shareholders wishing to opt out of the current Scheme of Arrangement, to take independent legal action are able to do so without needing the agreement of the registered Nominee holder as well. In the event that the Nominee is in conflict with the beneficial holder, the legal rights of the Nominee revert through the Langbar back to the beneficial holder.
Shareholders wishing to opt out will be required to complete the Non-Participation Form on the Langbar.com website and send a completed and signed copy to Langbar at:
Mahesh Desai or Chris Willis
Langbar International Limited
12 Curzon Street
London
W1J 5HL
You can also confirm the Opt-Out by emailing
Mahesh@dbuchler.com or Chris@dbuchler.com or David@dbuchler.com
Please ensure that you notify your Nominee broker that you are opting out and ask them to confirm the same to Langbar and send you a written or email confirmation of this fact.
If your nominee broker is not opting out, then you will need to notify Mahesh, Chris or David of this fact and get confirmation from them that they have acknowledged your choice.
Court Hearing
01 September 2006
There will be an application hearing in Court 53 of the Royal Courts of Justice in the Strand on 1 September 2006 concerning the Scheme of Arrangement:
COURT 53
Before MR JUSTICE RIMER
Friday, 1 September 2006
At half past 10
Unrobed
Scheme of Arrangement
In the matter of WH Smith Plc & ors
Not before half past 10
Unrobed
Application Notice
In the matter of Langbar International Ltd
DVD of Shareholders Meeting Available
16 August 2006
The DVD of the informal meeting of shareholders that was held at the New Connaught Rooms in London on 25 July 2006 is now available and can be ordered on this website.
Shareholders Meeting - 25 July 2006
25 July 2006
An informal meeting of shareholders was held at the New Connaught Rooms in London. David Buchler made a statement updating shareholders on the current position, followed by statements from Sion Richards of Jones Day, who are managing the legal investigation, and Robin Spencer of Lovells, the Company's legal advisers. It was announced that in excess of £4m has been recovered from monies held by Insinger de Beaufort on behalf of Lambert Financial Investments Limited. Copies of all statements are available on the Investor Relations page of this web site.
Report of Court Hearing - 4 July 2006
On 4 July 2006, the hearing of the application to convene the meeting of Langbar's Scheme
Creditors (as defined in the proposed Scheme of Arrangement), adjourned from 16 June 2006, was resumed. Certain small shareholders represented by counsel and solicitors, appeared at the hearing of the application. Following submissions, the hearing was adjourned to enable the scheme to be amended to allow beneficial owners of the shares with Scheme Claims to vote on the scheme directly and be personally bound by it.
Langbar will therefore be assembling a list of persons who have an interest in Langbar shares even though they do not appear on the relevant registers. This list will be assembled by contacting persons believed to have interests in Langbar shares directly, contacting those names which appear on Langbar's registers and advertising in appropriate newspapers in relevant countries. It is hoped to restore the court application at the end of this month and proceed with a revised Scheme of Arrangement.
23 June 2006
Langbar inquiry
The former chief executive of AIM-listed shell company Langbar is under investigation by accounting regulators over his role in the “establishment, listing and affairs” of the failed firm. Stuart Pearson, a trained accountant, faces an unlimited fine or loss of his licence if he is found to have behaved inappropriately.
19 June 2006
In the High Court on 16 June 2006 Langbar applied for leave to convene a meeting on 25 July 2006 of certain creditors of Langbar referred to as ‘Scheme Creditors’. Scheme Creditors are principally investors who are holders of Langbar’s Common Shares or Depositary Instruments who have or may have claims against (1) Langbar and (2) certain persons formerly associated with Langbar such as certain founder shareholders and former directors. The purpose of the meeting is to vote on and approve a proposal for a scheme of arrangement under section 425 of the Companies Act 1985 (the “Scheme”) between Langbar and its Scheme Creditors. The proposed Scheme is important for the future direction of Langbar. The Court adjourned the hearing to 4 July 2006 to enable a letter concerning the proposed Scheme (the “Practice Statement Letter”) to be sent to Scheme Creditors and draft documents relating to the proposed Scheme to be posted on Langbar’s website. You will find the Practice Statement Letter and these draft documents under the section of this website entitled ‘Investor Relations’. Please read the Practice Statement Letter dated 19 June 2006 carefully. It gives a summary of what the Scheme entails and why it is being proposed. In particular, please read the section headed “THE ACTION YOU SHOULD NOW TAKE”.
A draft of the Scheme itself can be found at pages 41 to 52 of the draft document entitled ‘Scheme of Arrangement – Explanatory Statement’. This is preceded in the same draft document by a statement, known as an explanatory statement, explaining the effects of the Scheme. This can be found at pages 5 to 40.
The Form of Proxy and Claim Form displayed on the website are also draft documents and should not be completed at this time. Final versions of these documents will be sent to Scheme Creditors by post, along with the final version of the Scheme Document, once the Court has made an order convening the meeting of Scheme Creditors.
Please note that not all investors in Langbar will be entitled to vote on the Scheme, including those whose investments are held by a nominee (where only the nominee will be entitled to vote). The Practice Statement Letter has been sent to all Scheme Creditors by post. If you have not received the Practice Statement Letter by post you may not be a Scheme Creditor (as defined in the Scheme).
You should contact Langbar as set out in the Contact Details section of the Practice Statement Letter or your broker or other financial adviser without delay if you are in any doubt as to what you should do.
To link to the pages on the Scheme of Arrangement, click on this link
Regli Given 6 Months Prison Sentence For Contempt
14 June 2006
In the High Court today Langbar was successful in its application to have Mr Regli committed in absentia to Pentonville prison for a period of 6 months for contempt of Court by failing to comply with each of his obligations under the Freezing Order dated 24 February 2006. Mr Regli is currently believed to be inSwitzerland. Mr Justice Kitchin commented that a sentence of 6 months was entirely appropriate (indeed at the lower end of the scale) given the seriousness of Mr Regli's non-compliance.The Judge also agreed to the Company's request that a similar application for committal against Mr Arad be adjourned for a period of 28 days.
Court Hearing
13 June 2006
There will be an application hearing in Court 58 of the Royal Courts of Justice in the Strand on 14 June 2006:
COURT 58
Before MR JUSTICE KITCHIN
Wednesday, 14 June 2006
At half past 10
Unrobed
Skeleton arguments and bundles for any listed application must be delivered by 10 a.m. on the day before the hearing of the application. The Chancery Listing Office will accept them if delivered to Room WG4 in time. The papers for any urgent unlisted application (and any skeleton argument or bundle sought to be delivered out of time) must be delivered directly to the Judge's Clerk.
Further information about skeleton arguments, bundles, chronologies and lists of issues will be found in paragraphs 5.1 to 5.40 of the Chancery Guide (October 2005).
APPLICATIONS
Langbar International Ltd v Rybank & ors
Same v Same
One TV plc v Eadem
COMPANIES COURT
EFC Holdings Ltd
Unsuccessful Application by Rybak Defendants to Delay Submission of Defence
12 June 2006
In the High Court today an application made by the Rybak Defendants (Mr Rybak, CMC Crown Management Corporation, Izabela Rybak and SCI Atol) to delay service of their defences until 28 days after their application for summary judgement and/or to strike out part of Langbar's claim failed. Instead, the Court ordered that the defences be filed by the end of July 2006.
Permission to appeal this decision was refused.
The hearing in relation to the application for summary judgement/strike out is likely to be heard in October 2006. The Company believes that the Rybak Defendants' application is without merit and will fail. However, an argument on these grounds has been anticipated since the initial hearing on 24 February 2006 and the Company is in the process of discussing with its shareholders the best way forward in order to successfully progress the claims in a manner which best protects the Company and all its shareholders.
The Company is determined to continue the good work and successes achieved to date in order to ensure a substantial recovery for its shareholders.
- ENDS –
For further information, please contact:
Andrew Benbow/ Stephen Benzikie
Bell Pottinger Corporate & Financial Tel: 0207 861 3232
Court Hearing
11 June 2006
There will be an application hearing in Court 58 of the Royal Courts of Justice in the Strand on 12 June 2006:
COURT 58
Before MR JUSTICE KITCHIN
Monday, 12 June 2006
At half past 10
Unrobed
Skeleton arguments and bundles for any listed application must be delivered by 10 a.m. on the day before the hearing of the application. The Chancery Listing Office will accept them if delivered to Room WG4 in time. The papers for any urgent unlisted application (and any skeleton argument or bundle sought to be delivered out of time) must be delivered directly to the Judge's Clerk.
Further information about skeleton arguments, bundles, chronologies and lists of issues will be found in paragraphs 5.1 to 5.40 of the Chancery Guide (October 2005).
APPLICATIONS
Lloyd v Pickering
The Governor & Company of the Bank of Scotland v Young & anr
Langbar Int'l Ltd v Rybak & anr
Same v Same
Crowley & anr v Law & anr
Autotech Design Ltd (s/o)
COMPANIES COURT
St Elphin's 2000 Ltd
Kirankumar Mistry
Lexi Holdings
MC Fabrications Ltd (s/o)
http://www.hmcourts-service.gov.uk/cms/list_chancery.htm
Dan Leahy Freed by Judge
12 May 2006
The marvellous news received this afternoon is that Dan Leahy was released from detention by the Monegasque Authorities earlier today. We applaud their decision to free Dan as he was innocent of the charges made by Mariusz Rybak - a fraudster wanted by the British Police for the biggest fraud on the Alternative Investment Market.
It is expected that Dan will be flying home to his family in Ireland and to celebrations for his release. The Langbar shareholders are delighted that a fellow shareholder, an innocent victim of the Langbar fraudsters is back home with his family at last.
Langbar shareholder Leahy to be released this week
08 May 2006
The following article by John Mulligan appeared in the Sunday Tribune:
DAN LEAHY, the Donegal native arrested in Monaco six weeks ago after he attempted to confront the former executive chairman of failed UK-listed investment firm Langbar, is due to be released from prison this week.
Email from the Company
04 May 2006
Thanks to Langbar’s management, yesterday the majority of the shareholders received the update below by email. Further updates will be sent when there is news.
UPDATE RE PROCEEDINGS
28 April 2006
The Board of Langbar is pleased to confirm that, as a result of the very substantial work undertaken to date, the Company's advisers have made significant progress in tracing the proceeds of the fraud which the Company believes has been perpetrated. As a result, the level of the worldwide asset freezing injunction granted by the High Court on 24 February 2006 was increased on 3 April 2006, so far as it relates to Mr Mariusz Rybak, from Ј29 million to EUR 49.5 million. The claim issued on 28 February 2006 against Mr Mariusz Rybak, Mr Jean-Pierre Regli, Mr Abraham Arad Hochman, Lambert Financial Investments Limited and CMC Crown Management Corporation Limited has also been extended to include a claim for certain declarations against Mr Rybak's wife, Izabela Rybak, and a company incorporated in Monaco, SCI Atol. There are therefore now seven defendants in the English proceedings (the "Defendants"). Mr Rybak, Mrs Rybak and SCI Atol have stated that they intend to defend the claims brought against them.
The Company and its advisers continue to seek to trace money and assets believed to constitute proceeds of the fraud and, in this regard, the Company has also commenced proceedings against Mr Mariusz Rybak and Mrs Izabela Rybak in the High Court of the Republic of Singapore. A claim was issued on 12 April 2006 and is supported by a freezing injunction granted on 13 April 2006 securing assets in Singapore. The Company has also made a criminal complaint against certain of the Defendants in Switzerland. The complaint is currently being handled by an investigating magistrate. The Company understands that an order securing certain assets has been made in Geneva as part of these proceedings and it will be providing all assistance possible to the magistrate to ensure that monies which are the proceeds of the sale of shares in the Company are secured and relevant documentation is recovered.
Further information will be provided when it is possible to do so regarding these matters. The Company and its advisers continue to work assiduously on the recovery of sums for the benefit of the Company and its shareholders. The Company continues to actively consider further claims which may be appropriate to pursue against other individuals or entities.
Free Dan Campaign
19 April 2006
The shareholders of Langbar were incensed to hear of the injustice of Dan Leahy & Ted Maye being locked up whilst Mariusz Rybak walks free. The Action Group have started a campaign to help him get free. We are asking all Langbar shareholders, including the current Chairman of the company - who kindly wrote in whilst on his holiday - to help get Dan free and back with his wife and family in Ireland.
If you can write a letter in support of Dan and forward it to the Action Group at the email address on the Contact Us page, we will ensure that Dan’s solicitor get’s the letter and it will be translated into French and sent to Monaco. Help us to get Dan free please.
Langbar Victim Held by Police
Whilst Fraud Suspect Walks Free
17 April 2006
An article appeared in the Irish Independent today stating that one of the Langbar investors has been arrested by the Monaco Authorities in Monte Carlo whilst one of the suspected fraudsters of Langbar is walking freely.
In a quite disturbing development, Dan Leahy has been arrested for ‘verbal assault’ whilst someone that is suspected of fraudulently taking millions of pounds is left free to carry on with his activities without being detained.
London Stock Exchange Intends to fight
Market Abuse Claim
14 April 2006
News was received today that the London Stock Exchange intends to defend the market abuse claim that has been made against them. The evidence supporting the claim can be reviewed at the Room Service Shareholders website, that is located on www.rsvshareholders.co.uk. It appears that the London Stock Exchange keeps making one bad decision after the other, as this claim will no doubt highlight the Exchange’s failure to abide by the Recognition Requirements and that they lied to the Room Service shareholders.
It should be remembered that the Exchange were also stupid enough to list Crown Corporation, a company that had little or no assets and certainly not the funds that the directors claim had been invested. The Exchange also allowed their Regulated News Service to be used to make an RNS release that was completely misleading and certainly contributed to the number of victims of the Langbar fraud. The Exchange should be ashamed of themselves.
Langbar Delists from AIM
12 April 2006
At the close of business today, Langbar International ceased to trade on the London Stock Exchange’s Alternative Investment Market. As the company was suspended for over 6 months, under the AIM Rules, the company can be de-listed.
A decision was taken to save funds for the company whilst they fight the legal actions concerning the fraud. It is anticipated that once the funds are recovered, the investors will be consulted about the possibility of the company re-listing on the market.
In the meantime, as the company is now unable to issue RNS news releases to the market, they are contacting the shareholders directly. The company has the names of members of the Action Group and intends to contact them directly whenever there is news posted to the Langbar.com website.
London Stock Exchange Sued for Market Abuse
03 April 2006
The momentous news this morning is that the London Stock Exchange is being sued for Market Abuse by Nigel Smith, one of the coordinators of the Room Service Shareholders Action Group. According to reports, the Exchange lied to the Room Service shareholders in 2003 and 2004. These people were the victims of a market abuse performed by Evolution, then known as Evolution Beeson Gregory in October 2003.
The FSA found Evolution guilty of market distortion amounting to market abuse. It was the first case of serious market distortion prosecuted by the FSA. Evolution was fined GBP 500,000 and their chief market maker, Christopher Potts, GBP 75,000.
Evolution sold over 252% of the legally issued share capital of Room Service and made the market hopelessly disorderly. As it was the Exchange’s responsibility to restore the orderly market and they had already failed to prevent it becoming disorderly, they had to find a solution. The Exchange choose to arrange a Settlement Offer. To make a cash payment in lieu of delivery of the shares - as there was not enough shares to complete actual physical delivery. The Exchange approached a Nomad to value the price of the Offer.
What they did not reveal to the shareholders was that they gave instructions to the valuer, to discount the effect of the open short positions on the value of the share price. The effect of closing the open short positions would have caused the share price to rise dramatically - far higher than it was when the original market abuse happened.
In other words, by setting narrow parameters to the valuation, the Exchange predetermined the value of the Settlement Offer - They rigged the price.
Later on the Exchange misled the shareholders by telling them that it was an independent valuation. But worse than that, their dishonesty in concealing the valuation instructions was proved when they actually lied to the shareholders - They lied Twice in one letter.
The Exchange committed market abuse when they claimed in a letter that the valuation was free from influence by the Exchange or the market makers and that it was fair. They also claimed that acceptance of the Offer or outcome of any legal claim (for additional compensation) would not be prejudiced. But in a court action in 2005 it was found that the Exchange did something that denied the investors their compensation.
When the Exchange did not get enough acceptances to the Settlement Offer, they used dilution shares of lower value created after the abuse to settle trades for the higher pre-dilution shares. This effectively destroyed the value of the shares BEFORE the shares were restored to the market - thereby denying the investors their compensation.
What the Exchange did – in a moment of madness is dishonour themselves and damage the good reputation of the City – a reputation built up over hundreds of years under the motto:
“Dictum Meum Pactum” – My Word is my Bond.
For hundreds of years, people have been able to rely on the word of the City of London Markets – because of their tradition and honour in upholding their word, no matter what. But what the Exchange did was drag the good name of the City through the mud, by acting more like a trade association protecting market abusers than a Recognised Investment Exchange.
I only hope that someone can take over the Augean Stables on Paternoster Square and put new management in that can understand the rules of the market and the law of the land and follow them. Let’s hope that they do so fast.
The Exchange are not the only ones with woes. The FSA have been implicated in four separate scandals, involving their handling of Room Service Group plc, Mayflower Corporation plc, African Diamonds plc and of course the Langbar International Fraud – the biggest fraud on the LSE’s AIM market.
A company that was a fraud from inception and at GBP £370m, seven times the size of the Tonbridge robbery in Kent.
A company that the Exchange allowed to list on their Alternative Investment Market.
A company that put out a false RNS that caused hundreds of investors to lose millions of pounds.
A company that the Exchange is obstructing the investigation into, by withholding vital information that they and the FSA have requested.
Complaint Filed with
FSA Complaints Commissioner
28 March 2006
A complaint has been filed with the FSA Complaints Commissioner, ahead of next week’s events. It alleges that the FSA is ignoring the investigation of market abuses and trades that were not completed with the suspected fraudsters.
The CFD and SB companies are attempting to make the case a ‘fait accompli’ by calling in the payments by 12 April 2006. What they are not aware of, is the strength of feeling that will be caused by so many politicians calling out for a full investigation after the events that are planned for Monday morning.
The press will not be able to ignore the historic event that is planned for Monday and the focus will be on why the regulators have not only listed a company with no assets - but that they are failing to investigate the the obvious market abuses that remain.
Are they trying to conceal yet another market abuse by their members?
Langbar International Featured on
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Wake Up to Money - Radio Five Live
&
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Breakfast Show - Radio Five Live
&
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The Today Programme - Radio 4
14 March 2006
This morning Langbar was featured on ‘Wake Up to Money’ and the Breakfast Show on Radio Five Live and ‘The Today Programme’ on Radio 4. You can listen to an edited version of the broadcast by clocking on the text links above.
Please use right click and ‘Save As’ to download the broadcact
PROCEEDINGS COMMENCED
13 March 2006
The Board of Langbar today announces that it has commenced proceedings in the English High Court against two former Directors of the Company (Mr Mariusz Rybak and Mr Jean Pierre Regli) and also against: Mr Abraham Arad Hochman, Lambert Financial Investments Limited and CMC Crown Management Corporation Limited.
The claims were issued on 28 February 2006 and relate to a fraud which is believed to have been perpetrated on the Company. In the case of the three individual defendants, the proceedings include claims for damages for deceit and conspiracy to defraud and, insofar as the two former directors are concerned, claims for damages for breach of their fiduciary duties owed to the Company. The proceedings also include claims for a constructive trust over the proceeds received by Mr Mariusz Rybak and Lambert Financial Investments Limited resulting from the sale of shares in the Company, together with a claim against Lambert Financial Investments Limited for payment of US$350 million due under the terms of a promissory note dated 31 May 2004.
The claims are supported by a worldwide asset freezing injunction which was made by the High Court on 24 February 2006 and served upon the defendants on 7 March 2006. Under the terms of this order, all of the defendants were prohibited from revealing the existence of these claims until today and under these circumstances the Company considered that it would have been inappropriate to make any announcement regarding these claims before now. The High Court today ordered that these injunctions should remain in place until Monday 3 April 2006 when there will be a further hearing in respect of this matter.
Due to the fact that litigation is now underway, the Company can provide only this limited information as to the detail of the claims. Further information will be provided when it is possible to do so.
The Company is continuing to consider with its advisors what further claims it may be appropriate to pursue against other individuals or entities.
David Buchler, Chairman, Langbar, added:
'The fact that we have commenced proceedings against these defendants does not mean that other parties will not be joined to the proceedings later or that further proceedings will not be commenced. We are still not excluding anyone from the investigation. Langbar will be pressing ahead seeking disclosure of documentation and information and has issued an application seeking, amongst other things, repatriation to the UK of the proceeds of the sale of shares by Mr Rybak and Lambert.
If the defendants choose to challenge our actions, we will of course vigorously defend our position. Other authorities are continuing with separate investigations to which we will continue to provide the appropriate assistance.
It is our intention to recover as much as possible for the benefit of the Company and its shareholders. It has already been a very substantial task establishing what we believe has happened and determining what we can recover. '
Directors not seeking the lifting of the
free transferability
annonces the Company
27 February 2006
This afternoon, the Company announced that they will not be seeking the lifting of the restriction imposed by the Bermudan Monetary Authority, on free transferability of the Langbar shares. This means that if the BMA decides not to raise the free transferability restrictions, then the freezing of the CREST ISIN numbers will not be lifted and no transactions that were entered into before 12 October can settle - until the Police and FSA have had time to investigate what may constitute both fraudulent share trades and gross market abuses.
It is a major victory for both the management of the Company and the shareholders, because it will give the investigators time to decide whether there were more offences than just the fraud. If a number of market abuses are discovered, the investigation into the Langbar scandal could show that Exchange members were aware of the Fraud and were taking advantage of this knowledge - which is a market abuse under the Financial Services and Markets Act 2000.
We await the Company’s next announcement - which we hope will be a major victory for David Buchler in his work on the recovery of Langbar International Limited.
Deliberate LSE Obstruction of the
Investigation into Market Abuses
18 February 2006
This afternoon, I received a telephone call from Philip Caine, the Manager of Regulatory Complaints & Enquiries at the LSE. He was returning a call I made earlier in the week, to find out why we had still not received any answers to the list of hundreds of trades that we wanted checked for short settlements and possible market abuses.
He told me that the Exchange would not reveal the positions of their members and that as the FSA had not made a formal request (apparently the FSA had only forwarded our list and asked for the LSE to supply the results) the LSE would refuse to pass over any information.
Even though I pointed out quite clearly that we knew that several of the trades were definitely known to be short trades past their settlement dates and thereby in breach of the LSE Settlement Rules 3700 and 3701, as well as 3300.6 about causing others to break the rules, the LSE was still refusing to pass information onto the actual victims of a financial crime and a potential market abuse as well.
He told me that if the FSA made a formal request for information, that the Exchange would agree to pass over the information they needed, but accompanied by a confidentiality stipulation, that required the FSA NOT TO RELEASE the information to the victims of the market abuses.
This act is deliberately designed to obstruct any enquiry or prevent any individual from determining if there has been a market abuse and thereby making a formal complaint to the FSA about the market abusers.
The LSE is obstructing justice to protect their members from being brought to book for their market abuses. They are sabotaging any attempt that the shareholders might make to seek justice for the shorted deliveries that must have occurred during the financial crimes.
There is only one thing we can do under these circumstances and that is declare open warfare on the Exchange for preventing a full investigation into the whole scandal. The Exchange have claimed that they are conducting an enquiry, and despite this they have not announced this at all.
I already have the ball rolling, a few of the press have been informed already and more are being made aware of what has happened. The Independent has an article coming out tonight and others are following up on the TMP's failure during the last week.
But we have to take extra steps now.
Each person has attempted to find out if their shares have been delivered by contacting their broker. In many cases the broker has informed them that they were. Well I don't believe all of them and neither should you either.
If the LSE doesn't want to play ball, then an official complaint will have to be made for EACH AND EVERY TRADE - literally thousands of them.
The FSA will have to investigate EACH AND EVERY ONE, because we know that there are genuine short trades - and large ones amongst the data we have already supplied.
A general purpose letter of complaint will be prepared and placed on the Action Group website. If the LSE want to ignore their complicity in the scandal then they must explain to the ultimate judges and juries – the British Public.
The FSA will then be forced to remind the LSE that as a Regulated Investment Exchange one of their duties is to afford proper protection for the interests of investors.
The FSA is charged with certain statutory objectives:
- market confidence: maintaining confidence in the financial system;
- public awareness: promoting public understanding of the financial system;
- consumer protection: securing the appropriate degree of protection for consumers; and
- the reduction of financial crime: reducing the extent to which it is possible for a business to be used for a purpose connected with financial crime.
In the Langbar Scandal, the LSE is exposing the lack of market confidence and consumer protection. The failure to regulate their members properly and enforce the Rules to prevent market abuse.
But most of all, the LSE are proving that they are not only aiding and abetting by the concealment of financial crime - namely market abuse, but that they are allowing companies to list, whose sole purpose appears to be to 'fleece' the public of their savings.
The FSA statutory objective says:
the reduction of financial crime: reducing the extent to which it is possible for a business to be used for a purpose connected with financial crime.
Well Langbar was a business used for a purpose
connected with financial crime.
Which means that the regulators have failed not only the Langbar shareholders, but even worse, they have failed the British Public.
I would like every shareholder if they can, to visit their MP's surgery and ask them to table a question in the house. We have a little over 6 weeks to A-day.
Let's get questions about the LSE's deliberate obstruction of justice asked in the House of Commons. Let's start to get the MPs aware - especially the opposition MPs, that the present Government is not paying proper attention to the Regulatory people under them.
Tony has ignore enough letters now. It is time that the press start asking why he is not paying attention to a massive financial crime that could jeopardise the pensions of all people that have to invest on the market.
It is time that the Treasury Select Committee woke up and understood the situation. So a letter will be prepared for each member of the TSC and placed on the Action Group website.
I will coordinate with the press and try and get the TV involved. I want each member to:
a) write the letters and
b) lobby their MP and
c) make a formal complaint about each and every trade that you entered. If any of these trades are in nominee accounts, you can not be certain that they were settled. Even if the broker tells you that they were.
Therefore I want every one of you to make an individual complaint to the FSA market abuse department. If the LSE does not want to cooperate with the FSA and the investors, then maybe if the investors overload the FSA with complaints and the press write about it, the LSE will be told in no uncertain terms that they are damaging market confidence by refusing to cooperate in the investigation of financial crimes.
Order the DVD of the Meeting
12 February 2006
You can now order a copy of the DVD of the Langbar International meeting being held on 14 February 2006. The web page is located on this website. You must be a member of the Action Group and be able to prove that you hold Langbar International shares.
Pearson Resigns
10 February 2006
This afternoon at 12:01, it was announce by RNS that Stuart Pearson, the former CEO of Langbar International had resigned as an executive director of the company. He is to remain as a consultant to the Board and to provide them with information and assistance to the ongoing investigation.
Questions Required for the Meeting
4 February 2006
There are only 10 days left to the meeting, so you need to get your questions in as soon as possible. Please ensure that you send them to us, otherwise there may not be enough time for David Buchler to answer all the verbal questions on the day
What the Nomad & Broker Missed
22 January 2006
THIS TAKEN FROM THE 'AIM' LISTING BROCHURE:
LAWYERS
1) Assisting in drafting the AIM admission document.
2) Verifying the accuracy of the information included in the admission document.
3) Ensuring that all legal requirements are met in preparing the company flotation and in the information disclosed in the AIM document.
VERIFICATION PROCESS:
The admission document or announcement will usually be subject to a vigorous verifcation or due diligence process.
Action Group is Biggest Legitimate Holder
19 January 2006
This afternoon the Action Group some more significant holders as members and overtook Gartmore as the largest legitimate individual group of Langbar shareholders. With over 9.4 million shares between them, the Langbar Action Group can now claim to represent the interests of more than 350 individuals, with more joining daily.
The Action Group has been growing in size since it started and thanks to the website it getting the message out about the plans to recover the assets of the company or seek compensation from those responsible for this financial fraud.
Secure Bulletin Board Up and Running
17 January 2006
Thanks to our friends at Interactive Investor (iii.co.uk) the Langbar Action Group is the very first group of people to be using a Secure Community Discussion Board on a Financial Information website.
To logon to this new secure site, you will be asked to provide certain information and proof that verifies your identity. Access can not be given without this and the URLs for the invitations are specifc for each user and can not be passed between others.
To gain access to the Secure BB, you must be a member of the Langbar Action Group and must comply with the verification criteria, but you will have access to information not in the general domain, research that has been found about the participants in the fraud and any up to date material.
Meeting with David Buchler
6 January 2006
We had an extremely positive meeting with David Buchler today. There were three lawyers present and two members from the Action Group. David reassured us that he and his colleagues are working as fast and as hard as they can.
Can you please avoid contacting his office for updates, as this delays their efforts. They are consulting with the Action Group and other shareholders to provide a way of distributing updates, so that the enquiries are not delayed.
Obviously for reasons that can not be explained at the moment, we are not able to provide answers to all your questions without jeopardising David's efforts. Whilst David works on the recovery aspects, the Action Group will focus on the shorting matters and see what we can do to recover some of these failed transactions, with the cooperation of the FSA.
We are asking all shareholders for some patience and David Buchler will contact all the shareholders with an update as soon as he can. Hopefully by w/e 13 January 2006. But if not by then, soon afterwards.
Everyone is especially aware that the Bulletin Boards are being monitored by parties under investigation. Therefore, we respectfully request that all members refrain from discussing anything sensitive, so as not to give away what is going on.
Thanks to the kind people at iii, we have a private discussion board available. Once members have proven their status and identity, we will give you the means to access this protected area. The ADVFN BB will still be available for general discussion, but the iii BB will only be for members.
Some people will be asked to assist David in the UK and abroad. A few of the shareholders will be recruited to a shareholder committee, to lend support to David's efforts. A few of the shareholders in Switzerland and Germany may also be asked to help.
Let me assure you that I came away from that meeting far more confident that we have the right man in charge of the recovery effort and he is doing his best and is open to any suggestion that will help the company and the shareholders.
I suspect they know what we’re up to
Back to school for the junior market
Geoff Foster, Daily Mail
3 January 2006
IT is a crying shame that the Alternative Investment Market has to enter 2006 embroiled in the worst fraud case since its inception more than 10 years ago.
South America-focused property company Langbar, which joined Aim as a cash shell in October 2003 as Crown Corporation, is by far and away the biggest financial scandal to hit the thriving market.
The Serious Fraud Office's investigation into where £365m of cash reserves have gone is bound to produce adverse publicity in the coming weeks and loud shouts for changes to how the market operates.
Amid growing concern about the 70 or so shell companies trading, the London Stock Exchange has imposed an April deadline for them to either pull off deals or face expulsion from the market. But that should not detract from the junior market's record-breaking performance.
Aim is the place where some of the most exciting businesses in the world have come to raise funds. It houses more than 1,350 companies - it started life in 1995 with 10 - and is fast becoming a truly international market with 203 members from 23 countries trading.
Director Change
19 December 2005
(RNS) Langbar Intnl Ltd - Directorate Change
Langbar Intnl Ltd - Directorate Change
RNS Number:8867V
Langbar International Limited
Board Changes
Langbar International Limited ("Langbar" or "the Company") announces that David Buchler has been appointed Executive Chairman of Langbar International Limited and Christopher Wallis has been appointed Finance Director. Stuart Pearson remains an Executive Director.
Philip Wood, Non-executive Director, and Jean Pierre Regli, the Chief Financial Officer, have resigned from the board of Langbar International Limited with effect from today.
David Buchler is an experienced recovery expert and Chairman of DB Consultants. He has previously been Chairman and co-founder of Buchler Phillips, a firm of recovery experts, Chairman of Kroll Europe and President of the Institute of Insolvency Practitioners. David has been involved in several high profile recovery cases and specialises in turnaround situations. Christopher Wallis, a chartered accountant, is also highly experienced in the field of turnaround, recovery and investigations.
The Board is of course, cooperating fully with the Serious Fraud Office in its enquiries into the alleged fraud on the Company.
Also, the Company, having previously announced a joint venture with Global Marine Energy plc (formerly MOS International plc) in respect of International Drilling Corporation Limited, have terminated the arrangements at no cost to the Company.
Stuart Pearson, Chief Executive, commented:
"Having discovered the fraud, within months of my joining the Board, I am determined to recover as much of the shareholders monies as possible. To this end I have restructured the Board and appointed very experienced and well respected recovery experts to lead the process."
David Buchler, stated:
"This will not be a straight forward assignment. However, we will work with the Company's advisers and, where necessary, the appropriate authorities to determine exactly what has transpired and pursue the recovery of the Company's funds."
19th December 2005
ENQUIRIES:
Langbar International Limited Tel: 00 44 (0) 20 7647 9900
David Buchler, Executive Chairman
Bankside Consultants Tel: 00 44 (0) 20 7367 8888
Michael Padley / Susan Scott
Letters Page Completed
15 December 2005
The Action Group has written a set of standard letters that can be sent to officials and politicians. Obviously they require customisation to include your own name and address, but it would help your case if you added some detail about the extent of your loss. Tell them the hardship that this loss has caused and point out to them that under the law and the rules of the Exchange, the RNS statements encouraged investors to believe that the investment was safe, when in actual fact, this was not true.
Make your voice heard and add to the growing chorus of people asking why the Exchange managed to allow a company to list, when apparently it did not have the assets that it claimed to possess. Call for an investigation into the Scandal, the biggest fraud to happen to the AIM since it was formed.
The Meeting with the Management
12 December 2005
The meeting that was being arranged with Stuart Pearson at Edwin Coe, has been postponed because Pearson is unwilling to meet unless there are no lawyers present and it is held at the offices of the Nomad - Arden Partners
It had been hoped that representatives from the Institutionals would attend, but one of them has now declined. The other has not responded, even though they were contacted and re-contacted to find out their position. We have to surmise that they view that their interests conflict with the Action Group shareholders.
The management insisted that a list of questions were submitted in advance - presumably so they could prepare the answers or object to answer on the grounds of it compromising the investigation or incriminating the management.
The coordinators are deciding whether to go ahead with the meeting after all and will email an update on this in the next couple of days.
Interesting News
With thanks to JD Hurry and ADVFN
06 December 2005
Here's my post on DIA from yesterday with amendments:
The story of delisted oil-environmental marketeers Diversified Investment Strategies Inc (DIA) is not too dissimilar to Crown/Langbar's.
DIA released a series of RNS-equivalents about how great they were doing.
DIA's auditors resigned after withdrawing their report on the company's finances.
A CTO (Cease Trade Order) was issued by the Alberta Stock Exchange after the company failed to file its accounts.
Like Rybak/Lambert, it transpired that the major shareholders (ie. the directors) had failed to file holdings notices for years.
Malcolm Stevenson, President, made 329 share transactions (13% of all trades)over a 25 month period netting him nearly $2 million dollars.
Gunter Steffenson, Director, made 492 share transactions (11% of all trades) over a 32 month period netting him nearly $2 millions dollars (he's now a director of listed exploration co. Thelon Ventures Ltd).
In one particular month, the share price increased 130% on the back of bullish company statements while Stevenson, Steffenson and other insiders did much of the selling on the sly. Steffenson's secret dealings alone accounted for almost a quarter of all the trades during this month.
Other DIA directors of special note:
Abraham Arad
Wolfgang K.Menzel
A Meeting with the Management
06 December 2005
A meeting is being arranged at Edwin Coe, for a group of the shareholders to put their questions to Stuart Pearson. It is hoped that there will be representatives from the Institutionals and other holders as well. Numbers may be limited to about 45 or 50. If you do wish to attend, you will need to send a message stating so through the contact page on the website.
Although the date has not been fixed, because the management are rather pre-occupied this week, a date has been penciled in for 15 December 2005.
If you would like to attend this meeting, you will be required to bring proof that you are a Langbar shareholder, such as a contract note or a share certificate, or a broker statement and we would ask that all shareholders treat each other with respect, especially the management.
There is a list of questions on the Q & A page, but if you can think of some more, please bring them along. It is possible that some of the questions can not be answered, because of ongoing litigation. However, the management will refer shareholders that continue to ask questions that were answered to the website.
The coordinators will email an update on this meeting in the next couple of days.
Personal Details
06 December 2005
In order for the coordinators to make a proper list of the members, prior to any litigation, they need to collect more information from you. Some have only sent in their ADVFN ID and their email address. As we said in our first Group email, we need the following:
BULLETIN BOARD ID
FULL NAME
FULL ADDRESS
TELEPHONE NUMBER
EMAIL ADDRESS
NO OF SHARES HELD
VALUE OF SHARES HELD
All information will be held in the strictest confidence and is only intended to facilitate contact between the coordinators and the members. Can you please ensure that you respond to the emails. Make you membership count.
SFO AGREE TO INVESTIGATE LANGBAR
SFO NEW RELEASE
29 November 2005
Serious Fraud Office to investigate Langbar
The Director of the Serious Fraud Office, following a preliminary assessment of information referred by the City of London Police, has authorised the commencement of an investigation in relation to Langbar International Limited.
Notes for editors:
1. Langbar International Limited, a diversified holding company (formerly named Crown Corporation Ltd) is listed on the Alternative Investment Market of the London Stock Exchange. Trading in its shares was suspended, at the company’s request, on 12 October 2005.
2. On 25 November 2005, Langbar issued a statement via the London Stock Exchange’s regulatory news service announcing that it could not establish the existence of, nor verify its entitlement to, bank deposits with ABN Amro BV and Banco do Brazil amounting to around £370 million and that it had informed the UK authorities of the situation.
3. The City of London Police undertook an initial assessment and on 31 October 2005 notified the Serious Fraud Office (SFO). The City of London Police will provide officers from its Economic Crime Department to be part of the investigation team.
4. The SFO is a government department headed by the Director who operates under the superintendence of the Attorney General. It was established under the Criminal Justice Act 1987 and is empowered to investigate and prosecute cases of suspected serious and complex fraud.
Serious Fraud Office
Address: Telephone:
Elm House Press Office tel. 020 7239 7000/7001
10-16 Elm Street Mobile 0781 807 6688
London WC1X 0BJ Main tel. 020 7239 7272
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