July 18, 2018
Sources close to Thailand-based Jacky Investments Company Limited, also known as Jacky Star, maintain that they, and over a dozen other investors from The Russian Federation, are considering legal action against venture fund TMT Investments PLC (“TMT”), for stocks they first purchased on LSE AIM in 2015. Sources say that investors will allege that TMT used insider information to violate the law and intentionally defraud TMT’s investors of between $1 million and $5 million each. Jacky Star, in particular, claims to have gone bankrupt as a result of TMT’s alleged actions. A detailed investigation and a scheme of violations have already been published in Russian media. *
The primary allegation by investors against TMT is that the funds raised from TMT’s IPO were invested in a shell company owned indirectly by their friends and family, following which TMT cashed out a meaningful amount of stock and then declared its investment to have been unsuccessful.
In 2012, TMT acquired a stake in AppsIndep — a Russian company that develops multiplayer online games — for $1.8 million. However, AppsIndep did not gain satisfactory traction for its games so the TMT board incurred an impairment charge of 75% of the fair value of its original investment. However, there is no mention of these details on TMT’s website and the investors believe that such information was intentionally kept secret from them.
Furthermore, the investors are confident that there is a substantial amount of evidence that suggests that the directors of TMT — German Kaplun and Alexander Morgulchik — were affiliated with AppsIndep, an affiliation that was again kept secret from investors. Investors believe that the TMT Investment Director, briefly, even held a directorial position in one of AppsIndep’s Hong Kong based shareholders Lightvision Interactive. This means that, for a brief period, Alexander Pak might have been a director and shareholder in both AppsIndep and in TMT Investments. The investors will allege that, in light of TMT and AppsIndep having been “related parties”, and their lack of notification to the investors regarding this affiliation, TMT possibly stands in direct breach of AIM Rules 13, 17 and 31.
In 2014, the Board of TMT incurred an impairment charge of approximately $1.4 million because AppsIndep had difficulty in gaining traction for the games they launched. However, AppsIndep Financial Statements reveal that they had almost no business even going back to 2012 when TMT first invested in the company.
As it now stands, the investors still have their shareholders’ certificates. However, the share price is constantly rising, something that the investors allege is happening because the companies are trading it amongst the principals, thus preventing the investors from selling their shares due to a lack of liquidity. The investors are now concerned that once there is no money left in the fund and the artificial pumping of shares stops, the share value will collapse and the investors will lose the value of their investments.
“We have information that German Kaplun and his partners first created the capital of TMT Investments fund at the expense of front offshore companies in the IPO process” said Sergei Soloviev, politician and Vice President of the Academy of Real Politics, Moscow, Russia, who is representing the common interests of the investors involved. “They are currently artificially restraining the stock turnover on the exchange, without giving an opportunity for investors to withdraw capital. On behalf of a group of investors of the TMT fund, we are considering the possibility of filing a lawsuit in Russian and international courts”.
The investors are coming forward now with the aforementioned information because the founders of TMT Investments have recently announced the creation of a crypto fund — . This new crypto fund has already launched an ICO with which the defendants believe TMT intends to draw investment capital worth over $60 million. The defendants, comprising investors in Russia, Jacky Star from Thailand, and Soloviev from the Academy of Real Politics, are convinced that this new fund will be based on shell corporations. They believe that as soon as TMT Blockchain Fund generates enough capital via it’s ICO investments, TMT Investments will declare bankruptcy and initiate a similar scheme to defraud other unsuspecting investors.
Links to Russian Media Articles:
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