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Some Advice Needed Please

[Deleted User]

I've already posted in the Entrepreneur section but not sure if relevant there (or here for that matter)

Hello
I am hoping that some of you can throw some light on this for me please. I have no head for business but I fear the worst in this situation. I had a look at the company concerned website but cant understand what they are about.

Here is what I need help with.

This morning an elderly neighbour was over for tea and a chat. During the course of the conversation he mentioned that he and his son had been to a conference in the midlands with a company named Moralltach.

I am aware that my neighbour and his son are currently experiencing difficult times financially and I fear that what they picked up at this conference can not be good for them.

Here is what he told me:

If he invests €1000 with this company he will be returned €4000 after a period of 6 weeks. I find this part very difficult to believe.

But this part is more worrying.
By making the investment the door is then opened for a loan of €100,000. This loan will be charged at 5%pa and the FULL amount must be returned after 5 years.

He and his son plan on borrowing to purchase young horses (this is their line of work) and to resell at the sales hopefully at profit.

He assures me that no collateral is needed. Again I find this difficult to believe.

Can anyone throw some light on this company and also on the likelihood of this investment and outcomes?

I am genuinely concerned that they are about to be taken advantage of and could lose the little that they have.

Thanks folks.

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Veritas26

If you really want a laugh look at the Information Memorandum published by Moralltach in Nov 2016 for the NSX listing (public document). The jewel in the crown Galtee fuels & waste park with a “current valuation of €157m”. Location Barrigone, Limerick and the most valuable asset they claim to have. Drive past and see what you think!!

Maybe a typo and should have perhaps been €1.57m. Easy mistake to make.

Keltictiger

I am sure the journalist Niall Brady will be on the case!

Looking at their Information Memorandum from 2016 they list the following assets with either “current valuations” or “valuations”. Would suggest based on the previous post worth looking at the following.

McNally Anaerobic Digester (AD) Project - Euro 34m
Rothwell AD Project - Euro 34m
Fay Green Energy - Euro 39m
Wood2Energy - Euro 39m

Total = Euro 146m

From a web search I see no evidence that any of these are genuine. If anyone has info please share.

Rourkster11

Moralltach the gift that keeps giving!!

Veritas26

NSX letter to Moralltach on 10/7/18 requesting the “deeds to all investment properties”

Response from the company to the NSX was “contracts are subject to confidentiality agreements”. So presumably and conveniently they did not provide them.

Do contracts exist? If so do the contracts even warrant Moralltach calling them assets?

NSX letter to Moralltach on 16/4/18 seeking clarification as to whether page 17 of the information Memorandum stating that “a 15 year FIT is agreed with ESB and terms and conditions set out in the PPA” is a correct statement.
ESB was unable to verify these contracts as reported in the Times in September 2017.

So no evidence that ESB contracts were ever in place.

Moralltach was ultimately struck off by the NSX.

Rourkster11

Nothing to see here!

I am sure there is a perfectly rationale explanation.

Veritas26

Most likely a bunch of criminals. I see no substance to this business and strongly believe based on the lies in the NSX information memorandum that this is a scam.
The only people associated with the company are those with no/low integrity.
Steer clear and do not be deceived.

Dodgyone

Surely they are insolvent. Cannot raise any funding from finance houses without an audit.
Probably peddling lies to unsuspected retail investors to raise cash from selling equity privately. Steer clear this is a scam.

Dodgyone

I hear there is a guy called Gerwyn Duggan trying to flog their shares to unwitting investors. That is the same Gerwyn Duggan that was in court for a suspected fraudulent pyramid trading scheme.

Veritas26

I assume that this is the same Gerwyn Duggan that was involved with the viral angels Ponzi scheme. He can be seen on YouTube promoting the scam.

This whole thing absolutely stinks.

Dodgyone

Has anyone on here been unfortunate enough to have parted with cash for Moralltach equity?

maxwell smart

As this seems to be the 'Advice needed' section, what do you recommend to use for trading.

I've used E-Toro but the share I have my eye on isn't on it.

It is on the Nasdaq.

Any recommendations?

Veritas26

I strongly recommend that you use no system or person for trading Moralltach stock. That is unless you want to lose all your money as this company is a scam.

No audits, a Board and advisors of no integrity, most likely no real assets, repeated lies to the NSX in their information memorandum.

Reasonable chance that this is outright fraud and will result in criminal action.

maxwell smart

Veritas26 wrote: »

I strongly recommend that you use no system or person for trading Moralltach stock. That is unless you want to lose all your money as this company is a scam.

No audits, a Board and advisors of no integrity, most likely no real assets, repeated lies to the NSX in their information memorandum.

Reasonable chance that this is outright fraud and will result in criminal action.

Not sure if that advice was for myself, thanks if it is.
But it's a different stock I'm looking at.

I'll put up a new post with the question on what platform to use.

Thanks
Max

Dodgyone

Very interested spill the dirt!

How is this business not dissolved, insolvent or been closed down by regulators for non compliance with rules, have crime units in Australia, Malta or Ireland been alerted?

Veritas26

Irish “assets”, a Maltese registered company who try to list in Australia. Quite clever in terms of making it difficult for crime units and regulators with no one country having total oversight. Also more difficult to sue a Maltese registered company than an Irish (or Australian) one.

I fully expect that this fraud will be taken up by multiple crime units or coordinated by one crime unit. Just be patient.

Depending on how many people are impacted by this we may be able to watch a documentary on how this all unfolded in the not to distant future.

Veritas26

Actus Reus

Mens Rea

White Collar Crime

https://www.irishtimes.com/news/specialised-garda-unit-for-dealing-with-white-collar-crime-suggested-1.223177

[Deleted User]

OP here.
Many thanks for the advice given.

It would appear that this thread is becoming a nursery for new account(s)

I've had the advice I requested so could I ask a Mod to please close the thread.
Thanks

Veritas26

OP - you have certainly opened up a very interesting conversation based on what has been posted over the last few years. Thanks for that.

I believe that you are seeing multiple new posters on here due to the fact that Moralltach are attempting an IPO again. I also expect that there are many people very concerned about the company for multiple reasons.

I think that the points raised in this forum are of interest to current and potential new investors. There are some potentially very concerning points raised about this company to the extent that they have warranted exposure in the National Press.

Current investors have most likely been mis sold to based on a narrative that is untrue.
New investors are potentially at risk for the same reason.

Dodgyone

This is a public interest story as this company is staffed by Irish people and most likely fraudulent. Supposedly aiming for another IPO!

Not one of the “assets” they claim to have within their €650m of property assets (per Australia listing) can be found on the Irish property register.

They claimed in the Australia listing that their “assets” are debt free! Most likely a lie and well where are they!? Not on the property register as Moralltach “assets”.

They are staffed with people with questionable backgrounds.

They significantly overstated asset values when they floated in Australia. Significantly means by hundreds of millions.

They have no audits registered as ever being done in their country of registration that being Malta.

They did not declare to the Australian stock exchange that their CEO and CFO had been struck off/had regulatory rulings against them.

As no audited accounts have ever been filed in Malta difficult to know what they claim to have now but whatever it is can be taken with HUGE degree of scepticism.

They most likely are trying to raise cash by selling equity to private individuals using data that is as wrong now as what they stated in Australia several years ago.

We really don’t want this bunch of chancers embarrassing us Irish again.

Veritas26

Just one of the companies unhappy shareholders.

He bought shares at 0.25cents per share. This is 12.5% of the value that Moralltach listed the shares at in Australia when the company valued the company at 2 Euros per share based on false claims in their listing documents. The shares are most likely worth zero and this person was probably aware of that.

https://www.thejournal.ie/debt-collection-the-viper-5129857-Jun2020/

ScamAtak

Veritas26, this is such an interesting thread. Do you have any more information?

Veritas26

Dodgyone wrote: »

Very interested spill the dirt!

How is this business not dissolved, insolvent or been closed down by regulators for non compliance with rules, have crime units in Australia, Malta or Ireland been alerted?

Suus ‘a Magnus scam

Verum extra voluntatem

ScamAtak

This thread should keep running. Is this a shower of chancers or worse? I have been investigating Moralltach Global Plc for quite some time now............... since the suspension of the shares nearly 3 years ago. As you know the company had its shares suspended twice by the NSX once for not paying listing fees and once for not submitting an audit on time. It was then removed altogether. It has notified its current shareholders and indeed whoever wishes to know that (it appears on their website on an update 19th November 2020), that the company intends to seek a float on the Frankfurt Stock Exchange, is appointing Directors of a new Board and have appointed an Applicant Bank in Germany. So let’s ask some interesting questions relating to all of this.

1. Original IPO in Australia: Documents of note
https://www.nsx.com.au/ftp/news/021732646.PDF https://www.nsx.com.au/ftp/news/021734891.PDF https://www.nsx.com.au/ftp/news/021735734.PDF
Can someone explain stated Assets or investments of €650m in info memorandum of 2017 and then accounts say less than €250m. What explains this discrepancy? Is it misrepresentation of the facts?

It seems to be the case that some form of contract does exist between distressed property holders and the company. Those contracts are an exchange of Moralltach shares for “beneficial ownership” of the property. The original property owner still has full legal title to the property and the debt on the property still resides with that individual. If Moralltach ever had the funds to pay down the debt it would clear the debt and then the property would be registered in the name of Moralltach on the property register. My understanding is that this had not taken place on any properties at the time of the listing nor is it the case today.

I think it likely that Moralltach have contracts, that in the event of clearing the existing debts on properties that they would have full title to those properties, but as of the date of listing in Australia and as of today I can find no evidence that they have definitive full legal title to any assets. Assuming the above is correct how could these properties ever have been registered as Moralltach assets? Has a legal opinion from a reputable legal firm ever been obtained that clarifies this point? Has the company ever received any income on these properties as this is a very good indicator as to who really owns them?

Please can someone explain why the company claimed to own these assets yet I can find no evidence of full legal title in the Land Registry relating to Moralltach for the properties they claimed to have in the accounts and also the info memorandum? 92% of the land in Ireland is now registered in the Land Registry. Are the properties registered in the Register of Deeds? I found no evidence? In the public Info Memorandum, Moralltach are representing that they have full ownership of the properties.

Year ended 2017 the company recorded revenues of 1.75m yet it in the half year 2018 it reversed virtually all of this as it was not received. If it truly owned these assets why did it not receive this income? Why within 6 months did 98% of the income that was declared as receivable at 31/12/17 get reversed? Was this known about at the time of floatation?

2. If Moralltach do not have full legal title of these properties what does it mean? Does it mean that there was a false valuation of the company? Does it also therefore mean that a false market was created in Moralltach’s shares by the Directors? If the answers, to either of the last two questions are YES apart from suspension, why did the NSX not therefore inform the Australian police or Interpol.

3. If there is no full legal title held by Moralltach Global Plc, how did LNP Audit & Assurance actually sign off a full year of accounts (year ended 31.12.17) and a half year of Accounts (30.6.18)? This was a first time audit by LNP and the first time that the company put significant assets on the balance sheet (as the audit in 2016 by Walker Wayland showed no assets on the balance sheet). My understanding is that to avoid any impropriety or fraud particularly a pre-IPO audit which is high risk, you would normally check every contract by seeing contracts and by seeking independent verification by a reputable firm verifying legal tile at the land registry. Therefore I have to ask the question how did LNP agree the valuation of assets in the accounts? How did LNP form a view that these assets should be reflected as Moralltach assets when they are not registered as such on the property register (now or then)?
Why was no debt reflected on the balance sheet as per my research these properties have high levels of outstanding debt? Was this also a misstatement of the financials?
Did LNP receive verification as to title and if so by whom and was it an independent verification and did they obtain verification was not connected to the company in any way? What verification was obtained on the outstanding debt with regards these properties? If obtained, by whom? If the company owned the full legal title to the property, the debt on the property would still remain would it not?
The auditor gave the company a Going Concern qualification in 2017. If the company was a going concern in 2017 how is it still trading today? How are they funded today? When they raise that funding today are they misrepresenting the financial situation of the company?

4. Who has full legal title to most of the properties? As far as the evidence on the Land Registries and Register of Deeds shows, full legal title remains with the owners. If that is the case, what implication has that for the listing of the shares on the NSX a few years back and also any future listing on the Frankfurt Stock Exchange?

5. Valuation of assets. On investigation there is no verification from Savills that they were involved in the valuation of properties in the listing documents. Is that the case?

6. Valuation of Green Energy assets? In the memorandum it states that they are worth circa €300m. As an example, when Galtee Fuels is investigated it is actually land owned by Pat O’Sullivan and is in the Info Memorandum valued at €157m. You can visit this property. It has no Green Energy plant on it and didn’t have at the time of the IPO. It still has not. It is a quarry site worth maybe €2-5m. Have the company any valid Green energy Investments now or ever? Is there any evidence that the company has €300m of Green Energy assets and if not what implications does this have as to what they stated in the Australian IM? What are the implications of potentially overstating assets in the Info Memorandum by €300m?

7. ESB contracts that the Company claimed to have obtained in the Info Memorandum. This was questioned by the NSX. Since listing date have the company ever raised one cent of income via ESB contracts? I suspect not.

8. The people involved at the time of the float and today are as follows. Why would a company want to associate itself with people with the following backgrounds?

JK Brennan
CEO and a lawyer struck off in Ireland.

Nick Linnane
CFO. Subject to adverse regulatory rulings by the Chartered accountants Institute disbarred from holding client monies for his dealing of client monies related to Moralltach shares.
021735684.PDF (nsx.com.au)

Cormac Lohan
Legal director/advisor – investigated in Ireland for tax fraud.
Athlone solicitor Cormac Lohan’s secret recording - The Phoenix Magazine

Gerwyn Duggan
Investor Relations and main marketer of share sales to private individuals to raise capital over the last few years. The company are almost certainly unable to raise debt funding as they have never had a completed audit in their company of registration that being Malta.
Involved with several very controversial investment schemes
Who are Viral Angels - Adrian Hibbert and Gerwyn Duggan - 2nd Sept, 2014 - YouTube
Angel Business Club: Viral Angels Ponzi rebooted (behindmlm.com)
Jury considers fate of ‘pyramid’ seller | South Wales Argus

Larry Woghiren
He is a significant shareholder and an adviser to JK Brennan and has been introduced to shareholders as advising on the IPO. Described as a “shady figure”, “dodgy character”, “criminal” and Director of multiple businesses in NZ, HK, Germany & the UK that are regularly dissolved and then opened up again in new jurisdictions. Eliseo Partners and Acasa are two of these businesses with comments below:
Eliseo Securities Reviews - scamion.com
Acasagroup Reviews | Read Customer Service Reviews of www.acasagroup.com (trustpilot.com)

Peter Fenech
In Malta he is connected to a company who has assigned a corporate debt owed by Moralltach to another company connected via Judicial letter. What does that mean?

Where is this new Board?

9. I have gleaned from a shareholder a German Bank has have been appointed and are leading the efforts to secure a listing. Has that bank been provided with the full facts? Having easily found information that is readily available on the internet and in public documents why would a reputable bank get involved?

10. Debts currently. The company is trading as they are looking to list. Assuming for the last half year published accounts (where all the income was written off because no income had come in), what is the debt situation now? Are there any creditors or suppliers who are owed money currently?

11. Accounts in Malta. Moralltach Global Plc have never filed a set of accounts in Malta since they were domiciled in Malta. Why have no accounts ever been filed in its entire history of registration in Malta? Why has Moralltach Global Plc not been removed by the Maltese Business Registry?

12. Sale of shares prior to IPO and thereafter. How are new share sales being made and at what price? Are new customers being told the true financial situation and without financial statements how can they even know?
It appears that shares are being sold to private individuals at 25 cents per share versus the 2 euro per share that the company floated at during its failed listing. This is a 87.5% reduction on the price they claimed in 2017.
Businessman claims intimidation over alleged debt by operatives of Martin 'The Viper' Foley (thejournal.ie)

13. Why do shareholders not complain about the company? To answer this question I think maybe if you segment the shareholders between those that have received shares for property and those that have paid cash for shares, there could be an answer.

a) Shares for property - as I cannot find evidence of Moralltach owning full legal title to any properties, is it a case that those that have received shares are in a win-win situation? They still have the full legal title to their property and they have shares in the company. If that is the answer, naturally they are passive, because if the company is for instance dissolved and their shares are worthless they are in no better or worse a situation than before they were given the shares. But what if the company does float? Will they still retain their property?

b) Shares for cash – can it be deduced that based on the June 20 court case between Patrick Fitzpatrick and Moralltach that this set of shareholders have received shares at prices well below the price the stock was listed at on the NSX. Mr Fitzpatrick bought his shares at 25 cents per share and the shares were listed on the NSX at €2 per share. Is this segment of shareholders told that they have bought their shares at large discounts?

If so, then as long as the promise of an IPO is just around the corner they might be happy. They of course have no audited accounts to verify what their shares may or may not be worth. Are these individuals told that the property holds assets of €650m (or more) to convince them that they are buying shares at a large discount? Are they told that the company will list at a price of 2 Euros again and stand to make large gains at listing time? Mr Fitzpatrick clearly was not happy?

14. Why have the NSX not acted further than a suspension? Is it because they would like to sweep the matter under the carpet because it is just too embarrassing for them? Moralltach threatened to sue the NSX. So why didn’t they? Methinks they were wise not to as the spotlight would have been firmly highly focussed on Moralltach’s Info Memorandum and any lawyer would have just checked the full legal title of properties and looking at the property registry would have found no evidence of full legal titles. The NSX’s legal team would during discovery of documents, have asked for stamp duty payment receipts on transfers for all property Moralltach claimed to have full legal title. The NSX in court may also have questioned the statement that the properties are “debt free”, they may have questioned why the company persistently missed statutory deadlines on paying listing fees and submitting audit, they may have questioned the integrity of Board members and why full disclosure was not made of adverse events, they may have questioned the valuation in the IM of green energy assets which appear to be either significantly overvalued to the tune of €300m.

SO MANY QUESTIONS! Easy to look at the Registry of Deeds or the Register of Property to check title though and the history of full legal title. Easy to check the validity of Galtee as a Green Energy site in the Info Memorandum with a stellar valuation, easy to check the filing history of the company in Malta i.e. no audits submitted, easy to check the history of those associated with the company.

Veritas26

Veritas Valebit

This is a great piece of research.

Makes me think of gutting a rancid fish.

This is a monumentally badly run company and a story of gross incompetence and most likely much worse!

No marketing team in the world could paint this in a positive light!

Veritas26

Their Legal Director Cormac Lohan must be exhausted.

https://www.lawsociety.ie/globalassets/documents/gazette/gazette-pdfs/gazette-2018/janfeb-2018-gazette.pdf

Page 66. Found Guilty of misconduct by the Solicitors Disciplinary Tribunal

https://www.lawsociety.ie/globalassets/documents/gazette/gazette-pdfs/gazette-2018/march-2018-gazette.pdf

Page 61 Found guilty of misconduct by the Tribunal

https://www.lawsociety.ie/globalassets/documents/gazette/gazette-pdfs/gazette-2016/jan-feb16-gazette.pdf

Page 56 Found guilty of misconduct by the Tribunal

https://www.irishtimes.com/news/couple-suing-solicitor-over-house-sale-settle-case-1.520833?mode=sample&auth-failed=1&pw-origin=https%3A%2F%2Fwww.irishtimes.com%2Fnews%2Fcouple-suing-solicitor-over-house-sale-settle-case-1.520833

Sued over house sale

https://hobbydocbox.com/Bird_Watching/79647428-Total-number-of-cases-published-is-total-amount-of-fines-and-penalties-imposed-property-developer-328-property-developers-61-769.html

Penalty for under declaration of VAT

https://ie.vlex.com/vid/bolterra-ltd-and-others-792840009

Contempt of court

Dodgyone

Scamatak nice summary of the debacle that is Moralltach.

Nicely structured regurgitation of information that is publicly available but has not until now been pieced together.

ScamAtak

How much do you think has been invested by cash investors unconnected to JK Brennan and the Board who believe that they are going to be rewarded by a massive capital gain? Could it run into the €millions? It would surprise everyone concerned if it didn't.

I noted that JK Brennan who was the majority shareholder had given a personal guarantee to the company. The great thing about personal guarantees are that there is no central record of guarantees or sureties any where in Ireland or the UK. Who would know the value of a personal guarantee? It could be valuable or worthless dependant on the net worth of the guarantor or indeed how many personal guarantees have already been given out.

Look at Patrick Fitzpatrick who I am sure would prefer to have his money rather than invested in shares which are illiquid.

Veritas26

Patrick Fitzpatrick not only has illiquid shares but also most likely shares that are worthless. I suspect he realised this and tried to recover his money.

Moralltach need to pursue the narrative of an IPO being just around the corner to pacify the investors that have paid cash for equity.

Investors that have paid cash for equity most likely are fed the same inaccurate narrative that the company pursued in Australia. With no audited accounts in Malta these cash investors are being sold shares by people that have been in the press for involvement with Pyramid schemes.

Keltictiger

I cannot imagine anyone would be stupid enough to invest in this company after reading the articles on here. Zero chance this company will ever IPO.

Veritas26

A shred of comfort for investors in the event that they have purchased shares based on misrepresentations.

Directors are personally liable for their fraudulent misrepresentations. Where a director has made a fraudulent misrepresentation intending for another persons to rely on it, and that person does rely upon it and suffers a loss as a result the director will be personally liable.