The Pick Of Lawyers Inward Tortola: Focus Media Counterparties Edition

The principal streets of Tortola are a piddling dusty. When I wandered downwards them they were surprisingly empty but so it was hot. Very hot. There were irregular English linguistic communication tourists who had wandered away from the coastal resorts for a look-see. You could say them, they were sunburnt to a foreign crimson. There was the strange local seeking those tourists out (and me at the time) to offering us marijuana. There were signs for the local toxicant (Pusser's rum).

Beyond that in that place were lots of low-slung, excessively air-conditioned percentage buildings that contained lawyers. Lots together with lots of lawyers.

After all Tortola is tax-haven inwards the Sun amongst British law. The lack of taxes together with the lawyers to protect your rights are the industry inwards the British Virgin Islands - together with lots of people construction their businesses there.

Including the people that Focus Media does trace of piece of job concern with.

Here is a listing of 2009 dispositions made yesteryear Focus Media (you volition detect the master copy inwards the original post service on this matter (which you lot should read first) I posed 3 dissimilar interpretations of the accounts.

The first interpretation was that these genuinely were unrelated entities together with huge amounts of coin was lost on these transactions together with so the assets were given away. That is the accounts were similar a shot together with these were simply bad deals.

The second interpretation was that these were undisclosed related parties together with the transactions were percentage of looting Focus Media.

The third interpretation was that the earnings of Focus Media were faux (probably yesteryear faking upward revenue) together with the losses on these transactions were faux losses designed to offset faux profits (and so brand the books balance).

The whole write-up is here. I had no agency of distinguishing betwixt these interpretations.

Since so I accept done to a greater extent than work.

In exceptional I accept obtained the fellowship registration details from the British Virgin Islands for half-dozen of the counterparties. Remember these are unrelated counterparties - they are BVI companies that sold assets to Focus Media together with were by together with large afterwards given those assets back. As these were unrelated purchases all of these counter-parties should live on unrelated. All of them except for Only Education Holdings Limited together with Maxnew Holdings Limited because higher upward it discloses that those ii companies are owned yesteryear a unmarried mainland People's Republic of China private unrelated to Focus Media.

Lets leave of absence instance yesteryear case:

Catchstone was purchased from Only Education Holdings together with Maxnew Holdings express on the 16th Apr 2007. Only Education was registered on 6 Oct 2006, Maxnew on 8 Jan 2007. Both had the same address together with hollo upward numbers:

R.G. Hodge Plaza 2nd Floor
P. O. Box 3152
Road Town
Tortola VG1110
British Virgin Islands
Tel#: 1-284-494-4693 Fax#: 1-284-494-4627

That is OK because Only Education together with Maxnew were related parties - they were both owned yesteryear the same mainland People's Republic of China individual.

Both companies were afterwards struck-off for non-payment of a fee.

WonderAd was purchased from together with afterwards given dorsum to Megajoy Pacific Limited, a BVI fellowship owned yesteryear 7 mainland People's Republic of China individuals unrelated to Focus Media. The engagement of buy was fifteen September 2007.

Megajoy was registered on the 2 Feb 2007. The registered address together with hollo upward lay out were:

R.G. Hodge Plaza 2nd Floor
P. O. Box 3152
Road Town
Tortola VG1110
British Virgin Islands
Tel#: 1-284-494-4693 Fax#: 1-284-494-4627

The fellowship was afterwards struck off for non-payment of a fee.

By at nowadays I am puzzled. In a town total of lawyers these seemingly unrelated parties accept managed to pick out the same lawyer.

Wangmai was purchased from together with afterwards given dorsum to Richcom International Limited, a BVI fellowship owned yesteryear a unmarried mainland People's Republic of China individuals unrelated to Focus Media. The engagement of acquisition was fifteen August 2007.

Richcom was registered on 25 Oct 2007. Strangely this fellowship was exclusively came into beingness a few months after it had sold a multi-million dollar trace of piece of job concern to Focus Media.

The registered address together with hollo upward lay out are:

R.G. Hodge Plaza 2nd Floor
P. O. Box 3152
Road Town
Tortola VG1110
British Virgin Islands
Tel#: 1-284-494-4693 Fax#: 1-284-494-4627

Yes - it is the same address. And the same outcome. The fellowship was struck off for non-payment of a fee.

Dongguan Yaya was purchased from together with afterwards given dorsum to Sinoalpha Limited together with Max Planet Limited. The acquisition engagement was 1 Oct 2007. Each of these companies was owned yesteryear a carve upward unmarried mainland People's Republic of China private unrelated to Focus Media.

Sinoalpha was registered on the 12 July 2007. Max Planet was registered on 10 August 2007. They both had the same address together with hollo upward number:

R.G. Hodge Plaza 2nd Floor
P. O. Box 3152
Road Town
Tortola VG1110
British Virgin Islands
Tel#: 1-284-494-4693 Fax#: 1-284-494-4627

Yes - that same address.

Sinoalpha has since been struck-off for non-payment of a fee but (believe it or not) Max Planet is a fellowship inwards proficient standing.

Pictures of the official search records for all of these companies are appended to the halt of this post.

Interpretations

I originally had 3 interpretations of the disclosure almost the 2009 transactions. The persuasion that all these transactions are similar a shot though becomes harder to sustain.

In a town total of lawyers all these seemingly unrelated parties chose the same lawyer. And they are sloppy almost it - they don't pay their registration fees together with teach struck off. More notably (in the instance of Richcom) companies that create non nevertheless be sell assets to Focus Media together with are afterwards given those assets back.

The in conclusion instance leans difficult towards my 3rd interpretation - that faux cash was paid for faux assets (hence indicating that Focus Media has faux earnings). Why?

Because millions of dollars were - on this information - paid to a fellowship that does non nevertheless exist. I am non certain how a fellowship that does non be opens a depository fiscal establishment trace of piece of job concern human relationship together with receives existent cash. [Not having a depository fiscal establishment trace of piece of job concern human relationship to have the cash received precludes the root ii interpretations above...]

But a fellowship without a depository fiscal establishment trace of piece of job concern human relationship tin dismiss have faux cash [as per the 3rd interpretation].

That terminal trace is of class simply a approximate [maybe the fellowship that did non be did genuinely accept a depository fiscal establishment account]. But on the information hither it looks to live on a approximate amongst pretty proficient supporting evidence.

John

Appendix: Company details

Only Education Holdings Limited: