Since we were not getting anywhere via normal correspondence with Mr Stapleton and the other figures at EDWAFIN, I decided on another approach, full out coverage on the Internet, by blogging, Facebook Groups, Consumer groups, dissemination via emails and sms, and a few more. Noseweek, here we come.
This blog and the Facebook is are the first steps, because organising it all takes time and energy.
That's were we will start tomorrow.
Saturday, February 28, 2009
How true were the past honest truths?
While we were working hard an anxiously to obtain copies of the relevant prospectuses, we were also essentially confident that at least our current and past outstanding interest payments would be in time, in full, and paid by EFT using the million Rand, now operational, computer database.
Sometimes we think to hard, and especially in difficult times hang onto the words of those who we think can and will solve the problem.
Remember: the current crisis at EDWAFIN was the result of debtors letting them down, a situation that would be resolved by the end of February 2009 not to worry. Had Patrick Stapleton told the truth at the time (look earlier on in the blog). Make up your own mind from this letter dated 18 February 2009:
P. Stapleton (really tiny)
Sometimes we think to hard, and especially in difficult times hang onto the words of those who we think can and will solve the problem.
Remember: the current crisis at EDWAFIN was the result of debtors letting them down, a situation that would be resolved by the end of February 2009 not to worry. Had Patrick Stapleton told the truth at the time (look earlier on in the blog). Make up your own mind from this letter dated 18 February 2009:
P. Stapleton (really tiny)20090218 Letter From Stapleton
Publish at Scribd or explore others: Finance & Investing Business & Legal partial interest pay edwafin
Please note the bold, and I take it somewhat proud, statement of the partial February interest payment. Then follow further promises in the same vein as we have had in the past. Nevertheless, I had half expected it, and this came as no surprise.
On 23 February our attorney, wrote another reminder to Mr Stapleton and Ms Cowan concerning the refund of our investment money. As per usual no response has been forthcoming to date. How sad is the human race sometimes.
On 23 February our attorney, wrote another reminder to Mr Stapleton and Ms Cowan concerning the refund of our investment money. As per usual no response has been forthcoming to date. How sad is the human race sometimes.
As yet still no further acknowledgement or response to my request to have my investment back
Interlude
What now. EDWAFIN refuses to budge, respond or take action to remedy my situation. At least that is my impression I do suspect that there is a lot going on behind the scenes, but that does not do us any good, when we have entrusted them with our money, money which is now post refund date.
I desperately wanted to instruct the attorney to go ahead with the matter, but she rightly felt that it was important to obtain copies of the actual prospectus. Getting the prospectuses was not very easy, and a short piece was written about it earlier on in the blog. In any case, I find legal case very unpleasant, destructive and aggressive, and would rather not go tthat rout, but it seems that sometimes there is no other option.
I desperately wanted to instruct the attorney to go ahead with the matter, but she rightly felt that it was important to obtain copies of the actual prospectus. Getting the prospectuses was not very easy, and a short piece was written about it earlier on in the blog. In any case, I find legal case very unpleasant, destructive and aggressive, and would rather not go tthat rout, but it seems that sometimes there is no other option.
IMPASSE
Pausa Longa II
And then there was
STILL NOTHING
Two weeks after the debentures certificates, along with my "stop option" and completed forms had been returned to EDWAFIN, they simply did not even acknowledge receipt thereof. To say even less about the seven days my attorney had given them to refund us our money.
Again I had to send Mr Stapleton a letter, informing him that the debentures had been delivered two weeks before but that they didn't even have the courtesy of acknowledging receipt:
20090122 Enquiry After the Return of Debentures
(Note the picture is now reduced in size) The normally friendly, and congenial Mr Stapleton responded in a very curt message, that the matter was in the hands of the Legal Department. Now that was an expedient and convenient way of getting rid of me and the matter at hand - The Legal Department. I mean, how am I meant to respond to that? Now they could ignore me for as long as it was their pleasure and they would not need to address the matter of returning my investment to which I was now legally entitled. Of course, I still maintain that they are an upright, profoundly honest and above-board company. It is often being said that actions speak louder than words. But words frequently also speak louder than words. In this case we have actions contradicting the persistent reiteration that they are above board, honest and open, while on the other hand we have continuous expressions that are contradicted by subsequent continuous expressions. Anyway here is Mr Stapleton's email:
20090202 Stapleton Responds to Enquiry
In a slight flair of irritation I decided that Mr Stapleton, and his colleagues should realize that I was serious. Let's face it a lot of money is involved and we are not getting our monthly income from our investment. According to the prospectus, we were now also entitled to have our money back, and invest it somewhere else. But what does one do, the authorities are so busy with their own affairs that they don't even respond to the people of the country any more. The only solution was to get the media involved. There I had lots of plans up my one sleeves. However, EDWAFIN already has had its fair share of negative publication, and I didn't want to exacerbate an already precarious situation too much.
Thus, I wrote a short entry in a blog run by FIN24, with EDWAFIN as topic (click here to go there). I also made an entry with HelloPeter.com, which, for those that are unfamiliar with HelloPeter.com sends a message to the company concerned informing them that a complained has been made.
Perhaps that would wake them up. If not, there were a few other options still available.
Keep in mind the subsidiary companies, of which EDWABOND, seems a very important, if not elusive tentacle. They do all the fund raising and are registered with the FSB (who I had written to, but who are so important, that they don't respond to humans, only highly evolved nebulous a vague entities. Thanks anyway, we'll be back). That was the next target in my viewfinder and who would be better to approach than Noseweek. Let's be quite honest, if I am about to loose that amount of money it will be with a series of big bangs. There are a few other options, but we won't reveal the innermost secrets right yet.
The previously mentioned Ms Cowen, bless her soul, responded the next day. Unfortunately, is seems that some people think that other sentient beings are all lacking in IQ. Yes, she told us how busy they were, that they were not bankrupt, but were experiencing temporary financial difficulties it actually sounds as if they are trying to convince themselves), etc. etc. Nowhere was there acknowledgement of receipt of my documents.
Oh, nearly forgot to add, that the implication was that the whole matter would take time because it had to go to the board meeting in March (one would expect the board to sit at least twice a week in times of crisis), that the authorities had to give their approval, etc, etc. No mention of the clause 12.2 which states that investment should be refunded within 30 days after request. Strange also is the fact, the authorities had given their stamp of approval on the prospectus when it was registered, were they going to withdraw that now again?
In any case it was clear that they would not be able to pay me at that moment:
20090203 Reply From Cowan About Returned Debenturs
Nevertheless, I decided to give them some room and hoped that they would be reasonable enough to respond to me with the kind of urgency such a matter demands:
20090203 Email Response From Mk to Cowan
Again I had to send Mr Stapleton a letter, informing him that the debentures had been delivered two weeks before but that they didn't even have the courtesy of acknowledging receipt:
20090122 Enquiry After the Return of Debentures
Publish at Scribd or explore others: Finance & Investing Business & Legal no response debentures refund of
(Note the picture is now reduced in size) The normally friendly, and congenial Mr Stapleton responded in a very curt message, that the matter was in the hands of the Legal Department. Now that was an expedient and convenient way of getting rid of me and the matter at hand - The Legal Department. I mean, how am I meant to respond to that? Now they could ignore me for as long as it was their pleasure and they would not need to address the matter of returning my investment to which I was now legally entitled. Of course, I still maintain that they are an upright, profoundly honest and above-board company. It is often being said that actions speak louder than words. But words frequently also speak louder than words. In this case we have actions contradicting the persistent reiteration that they are above board, honest and open, while on the other hand we have continuous expressions that are contradicted by subsequent continuous expressions. Anyway here is Mr Stapleton's email:In a slight flair of irritation I decided that Mr Stapleton, and his colleagues should realize that I was serious. Let's face it a lot of money is involved and we are not getting our monthly income from our investment. According to the prospectus, we were now also entitled to have our money back, and invest it somewhere else. But what does one do, the authorities are so busy with their own affairs that they don't even respond to the people of the country any more. The only solution was to get the media involved. There I had lots of plans up my one sleeves. However, EDWAFIN already has had its fair share of negative publication, and I didn't want to exacerbate an already precarious situation too much.
Thus, I wrote a short entry in a blog run by FIN24, with EDWAFIN as topic (click here to go there). I also made an entry with HelloPeter.com, which, for those that are unfamiliar with HelloPeter.com sends a message to the company concerned informing them that a complained has been made.
Perhaps that would wake them up. If not, there were a few other options still available.
Keep in mind the subsidiary companies, of which EDWABOND, seems a very important, if not elusive tentacle. They do all the fund raising and are registered with the FSB (who I had written to, but who are so important, that they don't respond to humans, only highly evolved nebulous a vague entities. Thanks anyway, we'll be back). That was the next target in my viewfinder and who would be better to approach than Noseweek. Let's be quite honest, if I am about to loose that amount of money it will be with a series of big bangs. There are a few other options, but we won't reveal the innermost secrets right yet.
The previously mentioned Ms Cowen, bless her soul, responded the next day. Unfortunately, is seems that some people think that other sentient beings are all lacking in IQ. Yes, she told us how busy they were, that they were not bankrupt, but were experiencing temporary financial difficulties it actually sounds as if they are trying to convince themselves), etc. etc. Nowhere was there acknowledgement of receipt of my documents.
Oh, nearly forgot to add, that the implication was that the whole matter would take time because it had to go to the board meeting in March (one would expect the board to sit at least twice a week in times of crisis), that the authorities had to give their approval, etc, etc. No mention of the clause 12.2 which states that investment should be refunded within 30 days after request. Strange also is the fact, the authorities had given their stamp of approval on the prospectus when it was registered, were they going to withdraw that now again?
In any case it was clear that they would not be able to pay me at that moment:
20090203 Reply From Cowan About Returned Debenturs
Nevertheless, I decided to give them some room and hoped that they would be reasonable enough to respond to me with the kind of urgency such a matter demands:
20090203 Email Response From Mk to Cowan
Publish at Scribd or explore others: Finance & Investing Business & Legal refund of investment edwafin
It is 12 January and a request for form CM42 is made
Our last communication with EDWAFIN was around 20 December 2008. In the meantime we have feasted and the new year arrived. Nearly two weeks into 2009, on 12 January the staff of EDWAFIN were to be back in their offices, and I could at last request the wretched CM42 forms. These were to be completed and returned to the offices of EDWAFIN together with the debenture certificates.
- First I phoned, and a courteous lady informed me that she would send me a copy by email - that didn't happen.
- Then I sent three notes throughout the day delivered by emails and by internet fax ('0137654842@faxfx.net'; '0866816341@faxfx.net'; 'patrick@edwafin.com'; '0317652990@faxfx.net'; 'admin@edwafin.com'). Response - nada.
- I phoned again, and spoke to a curious lady whom I later discovered to be Ms Carole Gardiner. I simply, and friendly requested for a form CM42. She had no idea what that was. She wanted to know what it was about, and I informed her that I was requesting our money back. Absolutely not, even though they had defaulted, we would have to see out our five odd years. When I tried to convince her, she bluntly informed me that our conversation was going nowhere, and that she would email me. End of conversation. (I suspect that Carole and I were connected somehow in a previous lifetime, and that I must have put her eye out. This was Karma at work). This was just another person who denied being liable even though the company had defaulted!
- Ms Gardiner sent me an email requesting copies of my correspondence with Mr Stapleton. Good heavens, the circus is back in town. Perhaps Ms Gardiner was really not of this planet, and was communicating from another dimension. Poor soul, she is probably in darkness and looking for a light to move towards. Nevertheless, I sent her copies of all the correspondence I had in my possession, and never heard from her again. Has she found the light, I wonder?
20090113 Email From Mk About Form
Instead it was another lady, Ms Verona Cowan, the Legal Manager, who responded and sent me a copy of the form the next dat (13 january 2009):
20090113 Email From Cowan With Form
At last we were making some progress. The form was completed, and our attorney was requested to have the form and debenture certificates delivered to EDWAFIN by courier.
In was in EDWAFIN's hand on 20 January 2009, and inluded was a letter by myself, again requesting a refund of my money, as well as a letter written by our attorney giving them seven days to do so. My letter below:
20090116 Put Option
My wife and I were happy people. Everything had been done by the book. EDWAFIN is a reputable company, the people who work their are honourable, honest and sincere (some seem to be not so bright, but then life does not give in equal measures). Soon we would have our money back, and we would all walk away happy.
Offices closed until 12 January
Until 12 January nothing happened. We had a good meal over Christmas though.
Just fill in the Forms
Mr Stapleton, I reiterate is an honourable, friendly and congenial person, and I wouldn't mind having him as my friend. I am happy that he is part of my life-experience. Again, responded swiftly (remember, he is only holiday at this time). He readily gave me the necessary instructions on how to go about requesting that our money be returned to us. It was also fair that the office was closed at the time and that he didn't have the money or the power to return it just by himself. Also notice the caveat about legal procedures that need to be followed. We will return to this:
20081221 Email From Stapleton - Instructions
Please, can I have my Money back
Of course Mr Stapleton's comment, and badly veiled threats were not very tasty. Yet, I decided not to react with force in return, but to request that our money be returned by us. Edwafin was now clearly in breach of its commitments, and we were entitled to our money. In view of Mr Stapleton's later arguments I would like to repeat his words from a previous email, where he clearly outlines when the company is in default:
* As I have pointed out to you we are not in breach of our prospectus nor have we ever been, even now in paying within 15 days from month end as is clearly stated in the prospectus. (Only then are we in breach) So we are not in breach and I pointed out it is a temporary problem. That is just about resolved.
The nature of the beast is now slowly revealing itself. The honourable, trustworthy EDWAFIN, smooth talks you into parting with your cash (frequently pension money of the elderly and the source of the only income they have), but when it comes to the push - shove: here is the letter of the law. Yet, as will be seen as we go along, these "legal letters" are not always perceived as being applicable equitably.
Thus my letter to Mr Stapleton:
Thus my letter to Mr Stapleton:
Non Payment of Interest 20081221
The reader must please take note that this is a pivotable point in our investment saga with EDWAFIN. We seriously want our money back. Nothing else has any further bearing on the matter. We don't care about Mr Stapleton's sincerety, the reliability of the company and how progressive and impressive it is. The bottom line is that we want our money back and are so entitled by the clauses of the prospectus.
Interlude: Saturday 28 February
Thursday was an eventful day, and I had hoped that Friday would be calmer. However, life does not conform to hope, but to reality as created by us humans.
Before continuing with the chronology of events, I will briefly outline yesterday's events.
In an earlier interlude I mentioned that at the beginning of this week, I had informed Mr Stapleton about this Blog as well as the creation of a "Group" on Facebook.
On Thursday evening, while in bed I received an email from Mr Stapleton responding to my planned action. The contents of the email will be shown further on in this Blog. However, let it be known, that I wasn't impressed, and I worked until the early morning hours to return the favour (also show in its chronological order - we need to keep the suspense going).
Yesterday, Friday 27 February, my wife and I delivered the copies of the prospectuses to our attorney's office, and later that day in a consultation via the telephone and email gave her instructions to beginning legal action against Edwafin. We were also going to sue for damages and investigate the possibility of bringing charges of fraud against the directors of Edwafin singularly and collectively.
Sometime during the afternoon (Friday still) an email arrived wrom Mr Stapleton that put the whole issue in a different perspective and, if he holds by his word, the matter will be resolved by 31 May 2009.
My returning email promised not to make this blog or the facebook group public until 31 May 2009. If Edwafin has then kept its word, both will imediately be removed from the ether. If not - well you are reading this blog, aren't you?
The legal action is now also on hold.
Before continuing with the chronology of events, I will briefly outline yesterday's events.
In an earlier interlude I mentioned that at the beginning of this week, I had informed Mr Stapleton about this Blog as well as the creation of a "Group" on Facebook.
On Thursday evening, while in bed I received an email from Mr Stapleton responding to my planned action. The contents of the email will be shown further on in this Blog. However, let it be known, that I wasn't impressed, and I worked until the early morning hours to return the favour (also show in its chronological order - we need to keep the suspense going).
Yesterday, Friday 27 February, my wife and I delivered the copies of the prospectuses to our attorney's office, and later that day in a consultation via the telephone and email gave her instructions to beginning legal action against Edwafin. We were also going to sue for damages and investigate the possibility of bringing charges of fraud against the directors of Edwafin singularly and collectively.
Sometime during the afternoon (Friday still) an email arrived wrom Mr Stapleton that put the whole issue in a different perspective and, if he holds by his word, the matter will be resolved by 31 May 2009.
My returning email promised not to make this blog or the facebook group public until 31 May 2009. If Edwafin has then kept its word, both will imediately be removed from the ether. If not - well you are reading this blog, aren't you?
The legal action is now also on hold.
Thursday, February 26, 2009
Soon it will be Christmas - "HAPPY" as they say in Gauteng
After all the exchange of economic prose, I decided all must be in order, and settled down for the last few weeks of 2008. Of course 15 December 2008 would be an important day, as the cheque for the two month's interest would become payable, and we could then deposit it. Of course, we would have to wait some time for it to be processed by the bank, but who cares?
On the 15th, an sms message arrived from EDWAFIN, stating something to the effect that they were closing shop for the holidays, and that they would open again on 12 January 2009. Now, nobody begrudges a well earned break after a year's hard work, and I secretly blessed them all with a surrounding white light and mentally wished the staff happy days.
Of course, my wife and I also went to the bank to deposit the cheque, and all was hunky dory. Christmas was going to be full of jingles and a few Bells.
That's what I thought. Remember those good wishes for the holiday season, mentioned earlier? The devil surely didn't like that.
19 December the phone rings and it is the bank. "Sir, do you know that you have one unpaid cheque?" My mind began racing, "Who did I pay by cheque?". No, it wasn't a cheque that I had issued, but a cheque I had deposited, one issued by EDWAFIN. Shock - horror and many other unpleasant states of reality! Five days before Christmas - now isn't that a powerful gift.
I immediately informed Stapleton of this fact by email (as if he didn't know):
20081219 Email From Mk Cheque Bounced
On the 15th, an sms message arrived from EDWAFIN, stating something to the effect that they were closing shop for the holidays, and that they would open again on 12 January 2009. Now, nobody begrudges a well earned break after a year's hard work, and I secretly blessed them all with a surrounding white light and mentally wished the staff happy days.
Of course, my wife and I also went to the bank to deposit the cheque, and all was hunky dory. Christmas was going to be full of jingles and a few Bells.
That's what I thought. Remember those good wishes for the holiday season, mentioned earlier? The devil surely didn't like that.
19 December the phone rings and it is the bank. "Sir, do you know that you have one unpaid cheque?" My mind began racing, "Who did I pay by cheque?". No, it wasn't a cheque that I had issued, but a cheque I had deposited, one issued by EDWAFIN. Shock - horror and many other unpleasant states of reality! Five days before Christmas - now isn't that a powerful gift.
I immediately informed Stapleton of this fact by email (as if he didn't know):
20081219 Email From Mk Cheque Bounced
Of course the staff at EDWAFIN were now on holiday and nobody answered the phones. Convenient, because they wouldn't be back before next year. After a bit of research, however, I managed to find Mr Stapleton's cell number, and I must admit the sms I sent him wasn't very nice or polite (he would not answer the phone). I threatened to take legal action and have an interdict issued against him and the company. I bow my head in shame, and my actions will prob
ably return in a future life by the law of Karma.Prompt as ever, and ever so congenial, Mr Stapleton returned the favour the next day in an email, in which he threatened me with his dogs of Hades, extended and unaffordable legal battles and essentially implying that I had not chance in hell against EDWAFIN. Here we are:
Remember how the problem of not being able to pay the interests was due to the naughty computer database. In the letter that EDWAFIN had dispatched on 19 December, all was revealed: there was no money in the bank. The letter appears below. Notice the paragraph at the beginning of the second half of the first page. I quote
We are presently facing a short term liquidity problem, resulting in nour [in]ability [sic] to service ourn investors over the next months, probably until the end of ebruary 2009 at the latest. We will therefore effect an electronic payment into your account on or before 28 February 2009, which covers your interest payements from November to February, ...
After all who needs working computers in these times, but remember this promissory phrase for future reference. He then admits that the interest payment cheques had been stopped by themselves. Of course all is legal and above board.
20081219 Edwafin Letter About Non Payment To sum up thus far:
- Happy festive season
- Due to computer problems we send you a postdated cheque
- Computer database no longer a problem
- 15 December: we are going on holiday, won't be back before 12 January next year. By the way your cheque has been stopped
- We have a shortage of cash
- You'll get nothing before end of February 2009
- You will get all outstanding funds at the end of February 2009
- We know you are concerned, but don't worry we are fine
- They were let down by investors and soon all will be in order
- At the time of this note, 26 February 2009, the debtors have still normalized the debt situation
- 2+5 makes 3001, doesn't it
My Response to "Everything is alright now"
Yesterday I described how the investors received a letter from Mr Patrick Stapleton, in which he explained the woes of the computer. Again the computer presented problems and they had to write out 4000 cheques. The month of November and December had been combined to prevent writer's cramp with the staff.
Mt Stapleton also wishes us a very happy festive period. Mr Stapleton is a very nice man, and the following picture shows him to be rather a congenial person:
However, I was not happy and wrote a letter to him on 9 December 2008, stating this fact, whilst also mentioning that I was quite aware of the "Default Event" clause:
Non Payment of Interest 20081209
Although I don't think that I was the only person who had approached and reproached Mr Stapleton, he nevertheless responded speedily in a friendly and informative way. He assured me that the problem was purely computer related and that Edwafin had made a big profit and that there was no problem. This is his email of 10 December 2008:
20081210 Email From Stapleton
I left it there. After all the CEO had spoken and told me that it was purely a computer problem.
Interlude: Thursday, 26 February 2009
Today was a madhouse, and the things that I wanted to do had to be left aside.
On Tuesday I mentioned that there was a clause in EDWAFIN's prospectuses, that states that they have to return the investment funds if they defaulted on their obligations. Unfortunately, I only had access to paraphrased versions of the clause as they were published in the glossy brochures. That is not ideal and the attorney handling the matter for me, also needed an original copy.
Thus I set out trying to obtain copies of the respective prospectuses. What I thought would be easy, was not so easy at all. Yes, I know - freedom of information, and so on, but reality is different.
First, I tried the obvious people: EDWAFIN. "No,I could not get a copy but was welcome to peruse it on their premises in Durban" (600km from where I live). I remember so well the day when we signed up and the agent promised us a copy of the prospectus and the regular financial statements (this is also specified in the prospectus). The good old days.
The next logical place was the DTI, or more correctly its subdivision, CIPRO. First I was told that only accounts could apply, then I was told that I could get the documents over the internet - neither worked.
But today I received them in the mail, compliments of CIPRO. Four hefty envelopes filled with assorted documents. Nevertheless, after an hours sorting we finally have copies of the two prospectuses that pertain to my debentures. As soon as this site is open to the public, I will give more details about the documents and how you can obtain copies of my versions.
The upshot is that my attorney is now happy (important), and that I have a literal version of the clauses concerned. See below (please give the Scribd engine time to load - at the time of writing this there seemed to be a problem with the images. A readable copy of this document may be downloaded by following the links at the bottom):
Events of Default Clause 12 Prespectus
On Tuesday I mentioned that there was a clause in EDWAFIN's prospectuses, that states that they have to return the investment funds if they defaulted on their obligations. Unfortunately, I only had access to paraphrased versions of the clause as they were published in the glossy brochures. That is not ideal and the attorney handling the matter for me, also needed an original copy.
Thus I set out trying to obtain copies of the respective prospectuses. What I thought would be easy, was not so easy at all. Yes, I know - freedom of information, and so on, but reality is different.
First, I tried the obvious people: EDWAFIN. "No,I could not get a copy but was welcome to peruse it on their premises in Durban" (600km from where I live). I remember so well the day when we signed up and the agent promised us a copy of the prospectus and the regular financial statements (this is also specified in the prospectus). The good old days.
The next logical place was the DTI, or more correctly its subdivision, CIPRO. First I was told that only accounts could apply, then I was told that I could get the documents over the internet - neither worked.
But today I received them in the mail, compliments of CIPRO. Four hefty envelopes filled with assorted documents. Nevertheless, after an hours sorting we finally have copies of the two prospectuses that pertain to my debentures. As soon as this site is open to the public, I will give more details about the documents and how you can obtain copies of my versions.
The upshot is that my attorney is now happy (important), and that I have a literal version of the clauses concerned. See below (please give the Scribd engine time to load - at the time of writing this there seemed to be a problem with the images. A readable copy of this document may be downloaded by following the links at the bottom):
Wednesday, February 25, 2009
How the sleepless nights began
End of October 2008
The first signs of trouble began already with the interest payment that was due at the end of October 2008. It came late. The money was sent to us by cheque and was dated 4 November 2008 - four days after the end of the month. By the time the cheque had been cleared by the banks, it was at least 10 November before the interest money could be accessed.
The reason for the delay in payment, EDWAFIN said was that they had implemented a new computer database earlier during 2008, to manage the EFTs more efficiently. Unfortunately, the database, had left them in the lurch and they had to sign 4000 cheques by hand. That is fair enough, for those of us who work with computers this is normal for the course (even if such a program costs millions? A letter dated 15 May 2008 informed the investors of the new database, this was followed by a letter of 2 October concerning the commissioning of the database).
Then came the end of November 2008
A letter of 28 November informed the investors why that month's would only be paid by the 15th of December 2008 together with the December interest. Caveat: the cheque (the database was still not operational, and thus EFTs could not be done) was postdated to 15 December. An extra 1% was added for administrative costs, etc. The cheque could also not be cashed over the counter, obviously covering the company legally in case things would go wrong.
This was rather irritating and inconvenient seeing that it was the end of the year. But, hey, things happen in life and one has to accept these situations when they can't be changed. However, notice the last paragraph of the letter below. I feel the urge to repeat it here in view of what was to happen:
The first signs of trouble began already with the interest payment that was due at the end of October 2008. It came late. The money was sent to us by cheque and was dated 4 November 2008 - four days after the end of the month. By the time the cheque had been cleared by the banks, it was at least 10 November before the interest money could be accessed.
The reason for the delay in payment, EDWAFIN said was that they had implemented a new computer database earlier during 2008, to manage the EFTs more efficiently. Unfortunately, the database, had left them in the lurch and they had to sign 4000 cheques by hand. That is fair enough, for those of us who work with computers this is normal for the course (even if such a program costs millions? A letter dated 15 May 2008 informed the investors of the new database, this was followed by a letter of 2 October concerning the commissioning of the database).
Then came the end of November 2008
A letter of 28 November informed the investors why that month's would only be paid by the 15th of December 2008 together with the December interest. Caveat: the cheque (the database was still not operational, and thus EFTs could not be done) was postdated to 15 December. An extra 1% was added for administrative costs, etc. The cheque could also not be cashed over the counter, obviously covering the company legally in case things would go wrong.
This was rather irritating and inconvenient seeing that it was the end of the year. But, hey, things happen in life and one has to accept these situations when they can't be changed. However, notice the last paragraph of the letter below. I feel the urge to repeat it here in view of what was to happen:
I trust that you all have a wonderful festive season. Remember that you have invested into a very good company, with a high reputation.20081128 Edwafin Letter Late Payment
A short interlude - report back
Yesterday, after I posted the first two blog items, I wrote an email to Mr Patrick Stapleton, the CEO of EDWAFIN as well as the Group Legal Manager, Ms Verona Cowan.
I informed Mr Stapleton and Ms Cowan about this blog page, but that I would wait with full publication until the coming weekend. This would give them the time to respond but also give me the opportunity to bring the most important aspects of the content up to date. The content of the email is shown here (right-click to zoom in):
20090223 Email From MK
I informed Mr Stapleton and Ms Cowan about this blog page, but that I would wait with full publication until the coming weekend. This would give them the time to respond but also give me the opportunity to bring the most important aspects of the content up to date. The content of the email is shown here (right-click to zoom in):
20090223 Email From MK
Tuesday, February 24, 2009
The Decision to Invest with EDWAFIN
For comment on the legality of using a company's logo in a blog see Blogcoach and Intellectual Property
About two and a half years ago, an investment opportunity was brought under our attention via the Internet. The company that advertises the investment opportunity, EDWAFIN, has a classy image, great prospects, and lofty plans for the future. They provided extensive, glossy reading material and generally impressed my wife and myself with their reports of success. Viewers can go and look at their main site at www.edwafin.com where a number of links to subsidiary companies can also be found. More important for us as prospective investors was that they offered a whopping 15% interest per year - obviously a very attractive proposition.
The investment takes the form of debentures that runs for just over 5 years (63 months), after which the invested funds would then be returned. Investors have the choice of receiving the interest earned on the capital amount, at the end of every month or to receive the whole lot at the end of the investment period, thus receiving about double their invested capital after five odd years. Furthermore, to make their offer more attractive the representatives who visited my wife and me were very likable persons, made an excellent impression and contributed to the increase in our overall confidence we had in the company. The deal breaker was that we were offered an additional 3% interest per year: that is a total of 18% interest per year. There was even a further caveat to the offer: although one could not recall your money before the end of the 63 months, there is a clause in the prospectus (there are about 10 or more currently published) that states that if EDWAFIN defaulted on their interest payment, and did not pay such interests before or on the 15th of the following month, the full invested capital is refundable after 30 days. Enticing isn't it? My wife and I thought so, and promptly invested an amount of money with EDWAFIN, and a few months later we invested a second, equal amount of money.
For two and half years we received our monthly interest payments always on time and mostly a good week or more before the end of the month. That impressed us no end, and eradicated the slight fear that some commentators tried to instill in investors about the unrealistically high interest rates.
Then November 2008 came.
This is where the story really begins and during the following days I shall tell the tale as it were in short but intriguing snatches.
The investment takes the form of debentures that runs for just over 5 years (63 months), after which the invested funds would then be returned. Investors have the choice of receiving the interest earned on the capital amount, at the end of every month or to receive the whole lot at the end of the investment period, thus receiving about double their invested capital after five odd years. Furthermore, to make their offer more attractive the representatives who visited my wife and me were very likable persons, made an excellent impression and contributed to the increase in our overall confidence we had in the company. The deal breaker was that we were offered an additional 3% interest per year: that is a total of 18% interest per year. There was even a further caveat to the offer: although one could not recall your money before the end of the 63 months, there is a clause in the prospectus (there are about 10 or more currently published) that states that if EDWAFIN defaulted on their interest payment, and did not pay such interests before or on the 15th of the following month, the full invested capital is refundable after 30 days. Enticing isn't it? My wife and I thought so, and promptly invested an amount of money with EDWAFIN, and a few months later we invested a second, equal amount of money.
For two and half years we received our monthly interest payments always on time and mostly a good week or more before the end of the month. That impressed us no end, and eradicated the slight fear that some commentators tried to instill in investors about the unrealistically high interest rates.
Then November 2008 came.
This is where the story really begins and during the following days I shall tell the tale as it were in short but intriguing snatches.
Subscribe to:
Posts (Atom)
Posts
