Do any of the Albion VCTs pass the 80% test if Quantexa is revalued after it's latest buy-one-get-one-free "down round"?

Interesting points raised in Will Fraser-Allen's latest, and only 2 weeks old, plea to Government "please protect us from being wound-up" from his and Patrcik Reeve's favourite trade association

https://www.vcta.org.uk/_files/ugd/ed7722_4639fce60492463a966d5ddfc161cbc0.pdf

Remind me: how does a PONZI scheme work? Raise money to pay out prior investor obligations.

With EIS and BEIS it is now time to close down all VCTs and transfer their holdings to non-dividend paying (except from realised profits) entities.

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Today's letter to Lord Clarke of Nottingham, Honorary President of the VCTA. 

The Rt Hon. the Lord Clarke of Nottingham CH KC

House of Lords, London SW1A 0PW

and Honorary President, Venture Capital Trust Association

Dear Lord Clarke,

Fraud, false accounting, Perjury and Breaches of Companies Act 2006

by the members of the Venture Capital Trust Association

I write on a matter of grave concern that you have been “duped” into becoming the Honorary President of the “VCTA” so that its members may capitalise on your good name to further cover-up their decades of gross misconduct and law breaking.

Your original decision to promote investment by offering tax relief to encourage investment has worked for many years, once the asset-based misuse was eliminated, but has now been rendered wholly obsolete by the EIS and BEIS schemes, leaving the members of the VCTA to fight a destined to fail rearguard action to protect what is now a giant and demonstrably evidenced PONZI and tax avoidance scam that is mosty marketed as such.

I have corresponded with many of the 12 members of the VCTA over the last 2 years in an attempt to get them, and in particular the principal VCT legal adviser Howard Kennedy llp, to not only clean-up their lamentable regulatory and legal compliance failings, but to expose what has become the de facto standard that the VCTA members are, for all practical purposes, “above the law” and “untouchable by the regulators” in relentless pursuit of management fees and tax avoidance.

The latest scams include yet more filings by so many of the VCTA members, and others including JP Morgan and Janus-Henderson, of wholly false statements that shares have been issued for £billions in cash when that is completely and utterly false. I enclose one recent example filed by Albion Enterprise VCT plc, of which the Chairman is a senior partner of Jones Day llp.

These false filings have been made by the Directors of the VCTs, and by VCTA members acting as Company Secretary, in order to evade disclosure of the frauds they have been committing on all VCT shareholders for more than a decade by the deprivation of their rights to an Independent Valuation of the assets of the VCTs under s593 CA2006.

These rights were enshrined by Parliament some 15 years ago to protect investors against the then prevalent Listed Company merger scams, but have now become the “weapon of choice” for the unscrupulous members of the VCTA who consistently abuse the law because they know that so few members of VCTs have any interest other than obtaining Income Tax relief, as evidenced by 3% turnouts at AGMs, and that Regulators and Government Departments will never intervene.

Even when finally compelled to correct their false statements, all that has happened is that the VCTA members, and their compliant VCT Directors, almost always file incomplete returns which they are then compelled to amend to finally disclose what are always non-compliant reports. Those eventually revealed reports confirm the falsity of the statements in Shareholder Circulars about Independent Valuers and confirm that it is always the VCTA members who have themselves valued the assets, and then conspired with firms of Chartered Accountants, Howard Kennedy llp and other firms of solicitors, to ensure that the reports do not comply with the statutory provisions of s596(3) CA2006.

The investments are then revalued within a matter of days of shareholder approval and breach of undertakings to provide the valuations before any shares are allotted. The sole beneficiary is the relevant member of the VCTA with their fee arrangements, including as Company Secretary, which are immediately breached by them.

William Fraser-Allen FCA of the VCTA, Designated Member of Albion Capital Group llp and an admitted serial liar and fraudster, will be able to confirm the veracity of all that I have stated, and can direct you to the voluminous evidence that I have published.

The Secretary of State for the Department of Business and Trade, Rt Hon. Jonathan Reynolds MP, will also be able to confirm all the regulatory failings that his Department has consistently failed to identify or remedy. The Financial Conduct Authority stands condemned by your colleagues and will confirm its continued failure to investigate or remedy these endless failings.

If I can be of further assistance please do not hesitate to contact me.

Yours sincerely

Mark G. Hardy