Follow Upward On Norma Provencio, Valeant Together With Signalife/Heartronics

Valeant has offered a curt reply to my terminal post. To quote inward full:

We empathize that Ms. Provencio participated inward a person placement inward May 2003 together with completely sold her grade inward 2004.  We equally good empathize that Mr. Stein was neither an officeholder nor manager of Signalife during the fourth dimension current of Ms. Provencio’s investment. According to Mr. Stein’s indictment, his fraudulent activities began inward July 2005.

The background is that Ms Provencio, the chair of Valeant's audit commission had held the same grade at Heartronics/Signalife which has since been exposed equally a major fraud together with where the primary (Mr Stein) is inward prison.

So lets bring the defense forcefulness of Ms Provencio equally read.

Valeant appear to bring that Mr Stein's fraudulent activities began inward July 2005.

Ms Provencio joined the Heartronics/Signalife board on 29 July 2005.

Her tenure equally chair of the audit commission coincided to the calendar month the start of outright criminality.

Moreover nosotros know she previously co-invested inward Heartronics/Signalife amongst Mr Stein. To quote and before annual report:

On May 15, 2003, nosotros completed the initiatory of all tranche of a person placement pursuant to which nosotros sold 82,667 units to Mr. Mitchell Stein, SJ Investments together with Ms. Norma Provencio at $3 per unit of measurement for cash amounting to $248,000. Each unit of measurement consisted of i mutual percentage together with i warrant. Each warrant is exercisable at $3 until May 14, 2004. Upon do of the warrants each investor volition have i mutual percentage together with an additional warrant to buy i mutual percentage $6 per percentage until Nov 15, 2004.

Sure Mr Stein was non a manager at the fourth dimension of that investment - simply he was sure as shooting influential. After all the before annual study equally good notes this:

Mr. Stein is the husband of Ms. Tracey Hampton, who owns together with controls ARC Finance Group, LLC, which owns roughly 69.6% of our outstanding mutual shares.

So whilst Mr Stein was non a manager Norma Provencio would cause got known she was investing inward what was for practical purposes Mr Stein's identify unit of measurement business.

Later she joined the board together with served equally chair of the audit committee. Coincident to the calendar month the accounts were wildly together with fraudulently faked together with Mr Stein's identify unit of measurement began dumping huge amounts of stock. 

Let me repeat: Ms Provencio joining the board (and audit committee) matched to the calendar month the start of outright criminal behavior.

Ms Provencio should resign from the Valeant board immediately. The creditors (who are at run a hazard of non beingness repaid) should involve it.

If Ms Provencio does non resign the other board members should resign to protect their reputations together with field their disagreement.

John

PS. And this is worth stating: Ms Provencio tin "see no evil". H5N1 previous Valeant press release stated:

The alone financial reporting affair that Ms. Provencio is specifically aware of that overlapped amongst her tenure on the Signalife board is a sale inward September 2006 of $190,170 that was alleged to cause got non been a legitimate sale.  With honor to that specific matter, the SEC electrical load states that it was concealed from that company’s CFO, auditors, exterior counsel together with other officers.

Hey - in that location was an indictment that said the criminal activeness started inward July 2005. There was a trial. There was a conviction.

But according to a Valeant press unloose Ms Provencio is unaware of whatever financial reporting affair that overlapped her tenure starting inward July 2005.

There is blissfully unaware, in that location is blind, in that location is wilfully blind together with in that location is Ms Norma Provencio.

I hateful seriously - later on an indictment, lawsuit together with conviction regarding a fellowship on which she was the chair of the audit commission she is all the same unaware.

This together with then strains credibility equally to endure ridiculous.




J