This is a quick blog to highlight the facts regarding the evidence being posted as to why this might not be the deal it seems.
Article 1 – Court case between Teresa Serrano Segovia vs Equities First Holding
In this case the lender sold shares provided as loan collateral without authorisation of the borrower. The borrower hadn’t defaulted and therefore no reason for this to happen.
The court found in favour of the borrower.
In other words the court would have found in favour of Quindell should this unlikely event occur.
Interestingly the case relates to an American court in Delaware. Why wouldn’t a Quindell detractor if working alone use a case from a British court?
Article 2 – Case regarding Equity First Securities committing fraud
Equity First Securities are a one man band based in America and has nothing to do with Equities First Holdings LLC.
Case isn’t relevant to Quindell.
Article 3 – Article about Equities First Holdings PLC of Indianapolis.
This article is about borrowers taking appropriate due diligence before they enter into contract.
Quindell will have taken appropriate due diligence.
Article 4 – This article is titled ‘Stock loans where they sell the securities to fund you’.
Article isn’t relevent to Quindell deal.
With very little research it is possible for anybody to realise these allegations are so tenuous or false, they have absolutely no credibility.
I believe it is significant that all the examples are from America. Why would anybody based in Britain reviewing a British company look to America for evidence to undermine a British business?
No doubt all will become evident as the legal proceedings instigated by Quindell progress to the next stage.