Apologies to investors in Osage 1, Phenco, Sooner Energy SPV-1, Kansas MB and Kansas B2 oil companies. We have not posted for a while because we were informed that investigations were underway in both the USA and the UK. We have been waiting for news on those latest developments.
The situation is that Martin Finch is still blaming the delays in royalty payments on “platform issues” and due diligence. The one thing that comes across very strongly in all Mr Finch’s emails is that he really doesn’t want investors to know:
- Where the money is coming from i.e which company is supposed to be paying it; and
2. The name of the currency platform.
It is very easy for any legitimate company anywhere in the world to transfer money to another country. The problem for Mr Finch is that he doesn’t seem to want to use a US or a UK currency exchange platform. That would make it much easier for the US and UK authorities to trace the payments.
Let’s break this down as simply as possible. The UK oil company is entitled to a profit share paid by a US company which is supposed to be operating an oilfield. It really is as simple as that.
So the US company is supposed to pay that profit share to the UK company. The UK company, which is controlled by Mr Finch because all of them are (at least on paper if not in reality), is supposed to pay the investors. So where is the problem ?
Well, first of all Mr Finch says his UK oil companies do not have US dollar bank accounts. Really ? The entire business of every one of those companies is simply to take in payments from US companies and pay out to investors, yet he claims the UK companies do not have any US dollar accounts ! Months and months have gone by and still he hasn’t thought to open US dollar accounts at his local branch of Barclays or Lloyds or Nat West ? His emails always claim that he is working day and night to sort out this problem but all he needs to do is call his bank ! They could open a US dollar account in the same day.
OK, so for some reason Mr Finch doesn’t want his companies to have US dollar accounts. The solution is for the US oil companies to go to a US currency exchange company, open an account, pay the money into it, have it exchanged into pounds sterling and transfer it across to Finch’s sterling account in the UK. Then it can be sent out to every investor. It really is that simple ! But…. that isn’t happening either.
Maybe I’m being cynical here but I think the US currency exchange company will ask the US oil companies how the money was generated. I think the US oil companies can’t bring themselves to say those few simple words “from the sale of oil from the oilfields”. Why do I think they don’t want to say those words ? Because I think that it would be very easy for the US authorities to check that statement. If the money ISN’T being generated from oil sales they would want to know where it is coming from so that they could ensure that this isn’t a Ponzi Scheme.
So, if they can’t or won’t use currency exchange firms in the US or the UK the search is on to try to find a currency exchange company in a very liberal regime that won’t ask difficult questions. That is not so easy in this current climate.
The bottom line is that Finch could easily tell the US companies to transfer the US dollars to his GBP bank accounts. For sure it is an expensive way of doing it. He might pay 5% more for the bank to exchange it into GBP, but at least he could then pay all the investors. They would have the money they are entitled to in their own bank accounts. Why won’t he do that ? Well, who knows ? Maybe it is because the bank statement would show where the money came from and maybe that is the last thing he wants ?
To find out more about Safe Or Scam investigations please visit the blog page on our website which can be accessed via this link.