Monday, 21 June 2010

Court Case Two: Chimay Shenanigans

It just gets better and better and better and better and better and better. Firstly some great news; James Woodyatt, as well as being sought by the police, has been conned out of $670,000 by Guy de Chimay and his Ponzi fund. Nice one Guy. It's a wonderful moment of karma, as Woodyatt used to work for 'Optimal' a feeder fund for Bernie Maddoff's Ponzi scheme.

This is how Chimay got embroiled in xG; when Guy rang James to steal his money, James suggested that he invest in xG. I suppose in order to convince him he was a serious player Guy went along with it. The investment was meant to be in a 'Bridge fund” (nothing to do with ACH's Bridge investment network - I think, although wouldn't it be sweet if it was.). This fund was to lend money to companies that couldn't raise money on the open market. So I suppose that the share purchase was meant to be in lieu of a loan, so that Chimay could show they were actually making investments. Sadly for Guy his appetite for stealing was greater than the rate of flow of cash into the fund, and there was no money to purchase the shares. The million he put in was borrowed from another investor – it wasn't his money. xG are trying to get the money from Prince Phillipe de Chimay, which will be interesting, and I hope futile.

In another wonderful moment of irony Guy has been caught red handed falsifying bank account records. Guy allow me to introduce you to Rick. He shares several of the same interests, I'm sure you'll have lots to talk about.

Edit: The New York Post says the authorities have only found $131 of cash in his accounts when they arrested Guy. Doesn't look good for James getting his $670,000 back. Such a shame.

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