http://articles.businessinsider.com/2010-08-11/wall_street/30008209_1_ipo-interoil-consultingThe last time we mentioned John Thomas Financial, the investment bank was defending controversial energy exploration company Interoil (IOC) against reports of stock price manipulation.
http://www.businessinsider.com/interoil-ioc-major-momentum-or-just-a-castle-in-the-air-a-new-investigation-2010-4Well, they're back!
In another shady -- if legal -- transaction, John Thomas CEO Anastasios Belesis reportedly screwed over a start-up company that was marketing software to help police find missing children.
The full investigation by Roddy Boyd is here.
http://www.thefinancialinvestigator.com/?p=181In brief, Boyd reports that John Thomas Financial wasted or pocketed nearly half of $13 million raised for the company, AMBER Ready. Belesis reportedly hijacked the company's development program, giving consulting contracts to his friends and political allies. After 12 years, the start-up company is an empty husk with no product in sight.
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and this
http://www.dailyfinance.com/2010/02/11/revenge-of-the-wall-street-traders-the-fat-cats-strike-back/Revenge of the Wall Street Traders: The Fat Cats Strike Back
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John Thomas Financial was founded in 2008 by Anastasios (Thomas) Belesis, who prior to the rally had most prominently been featured in the media for supposedly dispensing financial advice to Duchess of York–turned–movie producer Sarah Ferguson, and receiving the 2009 Bronx GOP Man of the Year award -- a distinction for which former mayor Rudolph Giuliani appeared in a video saying, "Tom embodies the spirit of the American dream: the New York dream. The son of immigrants, Tom rose from humble beginnings to become a great success on Wall Street."
This is what it means to be a great success on Wall Street:
In June 2008, Belesis filed an affadavit in the New York State Supreme Court on the subject of his involvement with the InterOil Corporation, a former Enron subsidiary with a claim to a massive pool of natural gas off the coast of Papua New Guinea, a relatively fecund history of associating with share-price manipulators and, by the beginning of 2008, a major cash squeeze coming on. Belesis testified that he had essentially orchestrated a deal by which InterOil managed to raise $95 million through a private convertible debt offering in which John Thomas and other entities would eventually net nearly $6 million in fees.
Four days after the deal was signed, Wayne Kaufman appeared on CNBC to call InterOil his "favorite stock." The company's shares proceeded to jump above the strike price of $32.50 a share, forcing a conversion of the bonds to shares less than a month after the appearance. Within months after that, shares plunged below $10 a share. They have since rebounded impressively. The stock performance has been extensively probed by the blog White Collar Fraud.
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