Iofina Share Discussion Threads

[superg1] 13/10/2013 09:08

The five pending case edges SQM

(charges on over 1000 pages lol, almost as long as my posts)

The SVS should define whether new formulations of charges made and if suspended two shareholder meetings scheduled for this week. The defendants prepare their defense and the prosecution is ready to develop criminal edge. And the market is already talk of regulatory changes.

by Victor Pizarro Cofré and Carolina - 06/10/2013 - 3:14

Julio Ponce Lerou, center, presides SQM since September 1987 and the group controller through a trust Virgin Islands: The Pacific Trust.Julio Ponce Lerou, center, presides SQM since September 1987 and the group controller through a trust Virgin Islands: The Pacific Trust.


THE cluster bomb just one month ago dropped the Superintendency of Securities and Insurance (SVS) on the heart of the control structure of SQM and began to expand. On September 6, the accused SVS Lerou Julio Ponce, Aldo Camp Motta, Roberto Patricio Guzman Lyon and Fica Contesse committing several violations of laws of the Stock Market and Corporations, by participating in a scheme to trade shares between 2009 and 2011, priced out of the market and limiting competition from investors.

Julio Ponce not only is the president of MCS since 1987. It is also the largest driver nonmetallic mining country and the world's largest producer of iodine, lithium and specialty fertilizers, valued at U.S. $ 9300 Bolsa million. Ponce indirectly controls slightly more than 34.05% of the company. Roberto Guzman is a consultant and lawyer for 27 years, Aldo Motta, also director of La Polar, was general manager or waterfall societies (Norte Grande, Calichera, Oro Blanco and Potasios) and Patricio Contesse Fica, son of Contesse Patricio Gonzalez, SQM CEO since March 1990, is the chief executive of Potasios two years.

The cluster bomb this week extended the four formulations disclosed charges, which total over 1,000 pages. The SVS described here a complex and intricate operations of stock trading in which investors and middlemen involved and where there could be new responsibilities. In essence, the modus operandi was as follows: the waterfalls finished off blocks of shares from capital increases subscribed and four groups of companies (waterfalls, linked, related or instrumental to Julio Ponce) acquired them, apparently at low market prices. The circle closed when resold the same actions, the same waterfalls, on market prices.

1. DEFENSE

The four defendants have until October 10 to file their defense with the SVS.Roberto Guzman's lawyer, Gabriel Zaliasnick, and requested an extension.Raimundo Labarca, defending Ponce, raised in court this week that the deadline for the releases was set at the discretion of the SVS and called for his suspension.The Court of Appeal declared inadmissible an injunction he filed on Monday and further analyzes Labarca steps.

Regardless of the procedural intricacies, the defending team Ponce and has been working for weeks. Labarca is the head of the group and he joined the litigants and criminal Jorge Bofill and Juan Pablo Hermosilla. Ponce's defense is analyzing operations specialists in financial and economic issues to show that each transaction was justified and that the minority of waterfalls benefited from the rise in the stock price over the years. Labarca has advanced that aspect of his defense: "My client has added value to these companies," he told La Tercera September after allegation.

Also insist on another argument in share purchases not only participated Ponce and its related, so did the AFP and Currency-their accusers, and other large institutional investors seasoned, "who often obtained huge profits," said Labarca.Among the minority is recognized that they bought many times over the tops of actions, but point out that, unlike nearby Ponce and were not subsequently arranged to sell the same shares at the same societies, at higher prices.

Ponce has not only lawyers. Luis Saldías, representative of one of Ponce personal societies, working with Carlos Balbontín, while Currency, complainant in the case, working with Pedro Pablo Gutierrez and Rene criminal.

Two. NEW? ACCUSED?

The SVS has not completed its investigation and, as in the case of La Polar, the indictments left in the first line of cases involved, but the most likely continue. At Polar, SVS charged one month after the scandal to directors, officers and auditors, and four months later did the same with two rating agencies.

Lawyers involved in the case-SQM waterfalls argue that the SVS did not finish its work on September 6 and will continue with new indictments in the following weeks. Fernando himself Coloma, head of the SVS, something anticipated. "In the next steps could be extended to other market players," said September 11 in London.

A hint of what might follow SVS gave itself. On pages 306, 307 and 308 of the filing of charges against Julio Ponce Lerou listed all the members of the boards of five companies cascades over the past three years. Although Julio Ponce SVS accuses of being the "mastermind and promoter" of the challenged scheme, prosecutors believe that, at least, there was negligence among other directors by authorizing operations as described authority, damaged the social interest societies. In the case of La Polar, several directors were charged with violating their duty of care obligations.

The other line of fire consists of the Stock Exchange that intermediated brokerage operations. One is Larrain Vial, whose partner, Leonidas Vial, was challenged by the SVS. The authority says its Investment companies Saint Thomas and La Viña part as FVC in the scheme would be devised Ponce. It transpired that the firm analyzes the case with Barros Errazuriz, whose members are close to Vial, and criminal. LarrainVial responded that the advisory firm for 25 years. The lawyers were unavailable for comment.

Another implied by the SVS in Ponce indictment is Alberto Le Blanc, a former partner at brokerage Transcorp, whom the authority also attributes an instrumental role. He also could be charged.

If the SVS pursuing new formulations of office in the next few weeks, you might have to resolve, ultimately, the successor of Coloma. The SVS has six months to absolve or punish. For Ponce, Motta, Guzman and Contesse, this period ends on March 6, five days before the change of government. The timing to resolve penalties in the case of additional formulations, and expire when the next administration has taken.

But months months or less, the insurance case take years to resolve. For the SVS Sparks attended the fine in 1997 and the Supreme Court ruled in 2005.

Three. BOARDS

This Friday October 11 joints should be made shareholders of Oro Blanco, which aims to increase its capital by U.S. $ 120 million, Norte Grande, which aims to raise another $ 92 million. The minority ask to suspend meetings because they do not trust the financial statements of both and because the driver is accused by the SVS. Ponce summoned them to raise capital, given the new market reality: Poster to Russian-Belarusian potassium in early April, the price plummeted SQM, the underlying asset of the entire cascade. For the year, the SQM-B shares are down 45%, a drop that has complicated upstream companies: many of them are in debt against the price of securities also are depreciated warranty. In the controlling group capitalizations believe are key to strengthening capital structures. But personeros minority linked to recall that the first due-the waterfalls have total debts of U.S. $ 1,175 million-affect White Gold recently in August 2014 for about $ 100 million. And Calichera has a significant available cash dividends to companies above. The SVS must decide by Friday on the future of these meetings.

April. THE CRIMINAL ARISTA

The September 11, 2012, a minority shareholder of waterfalls, Roberto Lobos, filed a complaint for the offense of fictitious transaction. He was referring to an operation that narrated in formalizing the SVS: a sale of shares in which mediated Linzor and proved to be a related party transaction intended to generate accounting profits. The criminal was transferred to prosecutor Jose Morales Crimes Unit High Complexity, who has brought cases La Polar and Pharmacies.Morales had a brawl with Coloma this week by the refusal of the SVS to give the background to the case. Morales followed the institutional way and resorted to the Court of Appeals for accessing the formal document that already has all the press.

For the lawyers involved, it is obvious that Morales expand research for that complaint to all operations relating the SVS in its text. And to offenses that are criminal connotation. The SVS accused Ponce Guzman Motta and offenses punishable with up to 10 years in prison: compromise or induce buy or sell shares through deceptive or fraudulent mechanisms, and make contributions or fictitious transactions. Morales must define the paths to follow and what efforts sort. "The list will be long subpoenaed", create an attorney involved in the case.

On the other rail is the complaint of Julio Ponce against currency by misleading the market by spreading false information and paradoxically transactions fraudulently inducing: the same figure that the SVS imputed to him today.

May. REGULATORY CHANGES

After every major event in the capital market has always been regulatory discussions.

A lawyer and an investor agree that, following this case, revised or repealed article Corporations Act that exempts meet the demanding requirements for related party transactions to routine transactions of a society. This article, they say, allowed the administration of the cascades controlled by Julio Ponce challenged conduct operations without the required control.

"My impression is that regulation in Chile is relatively good standard and complies largely with international standards," said the former superintendent Alvaro Clarke. However, I do think you could improve regulation of certain stock transactions. "Protocols should be established much more complete, so that may be given greater security to both buyers and sellers," he says. An investor, however, says the problem is not the norm or the auction scheme nor the direct orders (OD).The problem, he says, was the presence of offenders. In a local brokerage think that after this case, the "regulatory infrastructure" capital market change.

Esteban Puga Puga Ortiz's lawyer, said that in Chile and the United States has increased regulation and, despite this, they have uncovered major scandals. "We must see if it is worth more to empower those suffering the damage, take more effective actions for shareholders," he says.

[orslega] 13/10/2013 08:09

indeed..

Frustrated shareholders lash out at Chile's scandal-hit SQM


[...]
edit - link removed by advfn -

do google search on above will find the article...

[rock star] 12/10/2013 22:05

SQM in disarray is hardly a bad thing for IOF.

[n3tleylucas] 12/10/2013 18:56

Non-current liabilities ; Convertible note : $14,430,229

plus

Equity attributable to owners of the parent; Equity reserve : $569,771

equals

Proceeds from the issue of convertible loan $15,000,000

[peterz] 12/10/2013 08:50

HG - as you will be aware from this BB, many believe that IOF will not be around in 5 years time. And that holders at this point in time will all be significantly wealthier!! with IOF having been bought out at a price very significantly higher than the price you paid today.

[bobsworth] 11/10/2013 20:01

Welcome onboard Highly Geared

[highly geared] 11/10/2013 18:51

Bought my first iof shares today for my Sipp on a 5 year view. SG , thanks for your kind responses to the odd post I,ve made asking questions.

No certainties in life but iof looks a fair bet if they can operationally deliver on the core iodine business with water etc. in as a potentially big bonus.

Have a good w/ end all..

[festario] 11/10/2013 18:46

Come on IOF, only 2p more and I'm back in profit land!
It took a lot of buying between 137p and 162p to get me back to this stage, but it appears to have paid off.
I am looking forward to each new 'plateau' as each IOF plant is commisioned (and RNS'd), plus we here more about the Atlantis water strategy.

.... hey, and what about HAWK? Glad I piled in there this week. ;-)

[mail2] 11/10/2013 16:46

returned me funds re royal mail got no shares. decided to buy these. been watching them for a while.

[superg1] 11/10/2013 16:39

KR

It's a waste of time, it will get lost in the post. :-)

[king_roster_iii] 11/10/2013 15:42

I wrote them a stinking email complaining that they should have forseen the volume of investors - given they had a lot of the raw data - and ramped up their services accordingly. pretty poor performance given its normally excellent.

[the fat controller] 11/10/2013 15:17

Welcome to the party mail2.
I think your timing is immaculate.
Good luck, or is it just good judgment?
TFC

[mail2] 11/10/2013 15:15

on board bought bucket load at 173.5 ish.

[crazycoops] 11/10/2013 14:25

It's one thing not being able to handle the RM stuff but I am totally peed off with my inability to trade anything else through the HL platform today.

[mick95] 11/10/2013 13:54

H & L still not performing and allowing me to deal, probably their server can't cope with all the Royal mail volume trading!!!!!!!!!

[obbig60] 11/10/2013 12:55

I've been trying to get through to Hargreaves Landsdown all morning to sell my 227 RMG shares, and on the few occasions I made it as far as my account details the site crashed before I could place a deal.
Well I've finally made it so perhaps perseverance does pay off in the end.
(although the price for RMG has now dropped to 435)

[eddyeagle1979] 11/10/2013 12:36

HL has been a disgrace this morning! Ive been able to login a few times only to incur other errors ie. my whole portfolio is missing! It's past midday now and it's still unstable. Given that other brokers were unaffected - it's unacceptable!

[titus10] 11/10/2013 11:43

Engelo (9879)

Just posted my thoughts on the TA thread, fwiw.

[orslega] 11/10/2013 11:23

HL still struggling getting back up to speed..

...can log in but then rather worrying, the message I got was..

"You do not have any active Vantage accounts. Click here to open a new account. "

sure enough...all accounts have gone......all those years saving, jeez lol

[jbe81] 11/10/2013 10:52

3 good pieces of news from aaz this week