24MAS – There’s no shortage of suckers in 2012

A developing story is hitting the Swedish press concerning a company called “24MAS” which is short for “24 Mobile Advertising Solutions”. It is alleged that a group of 1800 mom and pop investors in Gothenburg attended standing-room-only presentations about 24MAS organized by a broker called Säkra Avenyn (which later changed it’s name to Avenyn Spar then went bankrupt) and these simple, honest souls bought a half a billion kronor worth of shares at up to a price of 26 kronor each. Problem is, it is alleged that the shares were being bought from a Virgin Islands based company called Stockhouse which  payed 1 öre to 24MAS for them. Now there is 100 öre in a krona so someone was making a profit of up to 2700 times (that’s ‘times’ not ‘percent’).  Stockhouse is a major shareholder in 24MAS.

When a Swedish Radio News reporter approached 24MAS, they denied they were involved in any of this. Only one problem with this denial: 24MAS directors took part in the presentations to investors, at which a forthcoming stock market listing was promised with comparisons being made to Angry Birds and Spotify. Still no sign of any listing as of today.

Sadly, some of these small investors got sucked in a little too much and have invested their entire savings in these illiquid shares of a company that is making spectacularly large losses (http://www.allabolag.se/5566937958/24_Mobile_Advertising_Solutions_AB). The authorities have thankfully opened an investigation into a possible case of fraud but it remains to be seen if anyone will get their hard-earned savings back.

Meanwhile, 24MAS is opening a New York office – I guess they must have investors with deep pockets. The Swedish man behind Stockhouse goes by the name of Ulf Engström and lives in, you guessed it, Switzerland.

Panaxia – stealing money by getting it given to you

I’ve got to start this blog with an incredible story that never made it outside Sweden. But that’s what this blog is all about: bringing the realities of the Swedish economy to the outside world.

A security company called Panaxia has recently gone bankrupt. Panaxia was a security company. A company with armored trucks that went around to small businesses like gas stations and small shops, collecting the weekly takings. They were very good at this but they weren’t very good at putting the money in their customer’s accounts.
When they went bottom up, around half a billion krona was missing. In fact that half billion was being used to keep Panaxia in business because they weren’t actually making any money. The island of Gotland was particularly hard hit by this where Panaxia seemed to have been very good at getting customers and many of these customers now face bankruptcy after giving their weekly takings to Panaxia.

This is really a tale worthy of a Hollywood movie. Start a security company, get customers, then steal from the customers by getting them to simply hand over their money with the illusion that you’re going to deposit it into their bank account. Pure genius!