excerpt
The law firms made a ton of money
too, charging the shell company thousands of dollars in fees, and the
brokerage and the accounting firms got their share filing all the financial
statements. Yes, the shell game meant a lot of money for
downtown Vancouver, and everyone knew it, even the regulators,
who had never wanted to shut the game down completely. It was only
pressure from the newspapers and the George Gains type of reporters
that made them squeeze the practice occasionally, just tightly enough
to ease the pressure without ending the game.
Every time the regulators changed something, the brokers only
had to modify their model to accommodate the change, nothing
more. When Eteo became a broker, the minimum seed stock price
was ten cents and the minimum price of prospectus shares was fifteen,
but later these were raised to twenty five cents for seed stock
and forty cents for prospectus shares. The shell companies were put
together in the same way. Only the numbers were different and the
commission rates changed. The creation of shell companies of course
depended a lot on the business cycle. In good times a lot of new companies
were listed while in rough times only a few went through.
Everything depended on the investing mood of the public, nothing
else.
Preoccupied with these thoughts, Eteo drove to Horseshoe Bay,
parked his Jaguar, and walked into the lounge of Sewell’s to find
Robert already waiting. Robert O’Leary, an Irish-Canadian, also lived
in North Vancouver, in fact at the top of Lonsdale Avenue in a thirtyyear-
old house with the most beautiful views of downtown Vancouver.
He was married to Donna and they had two daughters. Robert,
originally from Saskatchewan, had grown up in Vancouver and had
spent most of his career working for Kodak, but with the invention
of digital cameras he had found himself in an industry that was
quickly going down the drain. Rather than wait to be laid off, he had
taken early retirement, with a golden handshake, and started getting
involved in VSE deals, slowly in the beginning and more daringly as
they days went by and as he learned the tricks an investor should
know.
“Hello Eteo. How have you been?” Robert called out as soon as
Eteo stepped through the door.
Manolis Aligizakis 