Giovanni Di Stefano letter to Duff & Phelps

[SteveJ 743]

I felt that this deserved a new thread, so that members can access the letter with ease.

Mr John Paul Clark/ Mr David John Whitehouse

Duff & Phelps

43-45PORTMAN SQUARE WH1 6LY

LONDON

15th July 2012

Dear Sirs

THE RANGERS FOOTBALL CLUB PLC (IN ADMINISTRATION)

I refer to our telephone conversation on the 9th July 2012, letter of 11th July 2012 and my letter of same regarding the above. I refer also to my telephone conversation on the 11th July 2012 at 11.02pm to which I still await a response.

I now am pleased to confirm that on the 14th July 2012 I became a shareholder in the above company by way of a private sale. My share certificate number is C0697808442.

The Rangers Football Club PLC is still de facto an active company and only de jure in administration still permitting the company to trade. I am aware that the assets of the company were sold and I have now received a full report on the per se liabilities and contingent liabilities.

I have to say that prima facia in February 2012 based upon the balance sheet that I have seen I am somewhat surprised that Craig Whyte deemed the ‘company’ insolvent. I now require immediate answers to questions regarding the state of the company both before Administration and to date.

In order that there are no misunderstandings I submit that at the time of Administration namely St. Valentine’s Day (14th February) 2012 the said company was not ‘insolvent’ and that the assets exceeded the liabilities.

I also submit that since May 2011 a sum in the region of £50 million was at worst stolen at best misappropriated from the company with the knowledge of many that at the time were involved in the company including but not limited to bankers, lawyers, accountants, and other professionals.

I submit that Messrs’ Lloyds Bank PLC permitted in excess of £30 million that should have been paid to The Rangers Football Club PLC was actually deposited and paid into the account of The Rangers FC Ltd (formerly known as Wavetower Ltd) and that Wavetower Limited changed its name solely for the purposes of ensuring any payments made to The Rangers Football PLC be deposited into the account of The Rangers FC Ltd hoping the bank would either inadvertently/negligently (at best) purposefully (at worst) would permit such. Since the amounts are by no means small it is clear that as Administrators you have taken no steps to deal with this.

I also submit that although your firm “considered the ethical guidelines within the IPA” your appointment per se contravenes s.994 of The Companies Act 2006:

• (1)A member of a company may apply to the court by petition for an order under this Part on the ground—
  
• (a) that the company's affairs are being or have been conducted in a manner that is unfairly prejudicial to the interests of members generally or of some part of its members (including at least himself), or
  
• (b) that an actual or proposed act or omission of the company (including an act or omission on its behalf) is or would be so prejudicial.
  

Your firm acquired MCR BC which advised Craig Whyte on the acquisition of the majority shareholding from Sir David Murray. It was further retained, by your own admissions and documents we have seen, to advise on structural matters post acquisition.

I am not convinced that representations you made to HMRC regarding the level of involvement in the pre-Administration era were necessary the whole truth. Notwithstanding that you have cited officially that HMRC ‘were aware’ of your involvement and did not object to your appointment you have produced no document to substantiate such a claim.

As you are supposedly experienced insolvency practitioners you will of course be aware the meaning of the word ‘insolvent’ and its legal ramifications.

On the 14th February 2012 the company held in its bank account in cleared funds (cash) £3,373,170 yet according to reports leaked to the media the company was unable to pay its contribution to HMRC of less than £300,000. I note that on the 14th February 2012 at 13.07pm the said amount was transferred from the company’s account with the Bank of Scotland to your account.

According to information that has been supplied to me since February 2012 to date your firm has received nearly £20,000,000 in fees together with over £5,000,000 in fees to lawyers engaged by your firm. £2.7 million in fees was also paid by Charles Green as a condition of your firm selling the assets of the company to his company Sevco 5088 Ltd which in fact is now Sevco Scotland Ltd even though negotiations had previously been with Sevco 5088 Ltd.

All in all none of those companies have produced accounts or a business plan capable of proper scrutiny and review yet a commodity such as Ibrox Park and Murray Park was sold for £5.5 million with the condition that over half the same amount was also paid in legal fees.

Substantial monies were also paid to Lambert Smith who provided supposedly a valuation and other monies were paid to other agents and advisors.

Between 14th February 2012 and 20th March 2012 the company received just over one million pounds in revenue (£1,055,870) and it appears that money has been used for the costs of administration. The same story it can be said in the months of April and May.

I also note that the company was at one time a member or an associate member of the FSA via registration through a company called Origen Financial Services Ltd that started its life as Bondco 767 Ltd on the 10th March 2000 then changed its name to Momentum Financial Services Ltd on the 2nd March 2005 and ultimately became Origen trading from Farnborough in Hampshire.

Although your firm made an application to the Court of Session on the 19th March 2012 the order granting validity to your appointment was founded upon (a) truthful and accurate statements made to the Court and (b) that the costs of the application would be borne by your firm and not from the Administration.

In order to make clear again I contend that neither was complied with and further if that contention is correct the validity of your appointment per se is further in doubt and a nullity.

I require a full explanation and supporting documents with regard to the shares the Company held in Arsenal Holdings PLC. The company owned historically 16 shares and sold such using the services of an FSA broker Pritchard which was a company ‘owned’ by Craig Whyte although he appeared solely as a company secretary. The amount involved was slightly under £250,000. What actions/steps have you taken to secure the return of those monies that are held in an account that is subject to injunction? According to information received an agreement was reached in May of this year yet I now seek full disclosure.

I need not remind you that your firm are under a Statutory Duty to investigate the affairs of the company in accordance with the Insolvency Act 1986. Transactions that were carried out at undervalue as per s.238; fraudulent preferences as per s.239 and of course transactions to defraud creditors as per s.423. The difficulties in all of the three above are that your firm was involved at all levels of day to day management during the Craig Whyte regime making it impossible to effectively and with transparency undertake such a Statutory Duty. In simple words you would effectively be conducting an investigation into your own conduct.

I also seek sight of the Collyer Bristow Solicitors files especially as million seemed to have ‘gone through’ their client account. I shall be filing a notice with the Law Society since it would appear that whilst all of the dramatis personae are busy suing each other no one seems to have bothered making a report to the Law Society into the manner upon which the said esteemed law firm was able to handle millions without having carried out the Statutory Guidelines imposed by legislation and by the Law Society in money laundering.

In May 2011 approximately (I am awaiting documentation at the time of writing) £26,000,000 was paid to Collyer Bristow Solicitors by Ticketus as an advance fee on season ticket sales for the following three seasons but of which only £19,700,000 would be due to The Rangers Football Club PLC the difference of course in professional fees.

The reason the amount was paid to Collyer Bristow Solicitors was in order that any sums due to the Rangers Football Club PLC would only be paid once Craig Whyte had completed his acquisition of the club. Ticketus were thus relying on Craig Whyte completing his acquisition and I now understand that Sir David Murray was seriously misled into believing Craig Whyte had the financial resources by showing a letter from Collyer Bristow Solicitors evidencing proof of funds.

Of course your firm would have known that since it was your firm that advised Craig Whyte on this matter and of course Collyer Bristow Solicitors would also have known such. The letter from Collyer Bristow Solicitors is facsimile to the ‘letters of comfort’ that Roberto Calvi held from the Vatican Bank which permitted him to extend his fraud in Italy and fool the Italian Central Bank.

In June 2011 your firm duly advised Craig Whyte to pay Ticketus £3,000,000 and a further £5,000,000 in September 2011 and your fees and legal fees of such were in the region of £1,000,000. The said sums were not due to Ticketus since they had advanced monies on ticket sales for the following three years and incidentally on a rate of interest that would qualify as usury. I understand also that Ticketus was in fact introduced by MCR BC which in itself would be a serious conflict of interest.

In September 2011 a day after The Rangers Football Club PLC paid £5,000,000 to Ticketus supposedly in repayment of its obligation under the advance made Ticketus paid the same amount of £5,000,000 as a further advance at exorbitant interest rate to the client account of Collyer Bristow Solicitors. This payment lacks common sense and suggest an open scheme of money laundering and adds to the fuel of allegations that Craig Whyte was being effectively induced at best blackmailed at worst into taking decisions he would not normally.

I fail to comprehend the manner upon which you have failed so openly in your statutory duties to a Company that should never have been in this position.

On the 5th February 2012 the SFA opened an investigation into monies due to Dundee United Football Club over a competition match that was played on 5th February 2012. Yet at the time the amount The Rangers Football Club PLC held in its account was in excess of £4 million. Of course Craig Whyte was well aware that professional fees were due and he invariable considered those to be more priorities than paying for tickets that as I understand are always paid late by clubs but nonetheless paid.

A complaint was then made against Rangers Football Club PLC to the SFA that frankly made little sense other than to ensure that Craig Whyte would be blamed for all wrongs and torts and the professional advisors would seem to be the ‘save what one can’ brigade. The complaints made, not properly explained by whom amount to the following which the SFA claim to be violations of the disciplinary code: (i) failure to disclose that Craig Whyte had previously been a disqualified director (ii) failure to ensure that Craig Whyte acted in accordance with the disciplinary code as per previous (iii) suffering an insolvent event (iv) bringing the game into disrepute (v) failure to pay ticket monies to Dunfermline.

The obligations of disclosure fell upon Craig Whyte and not Rangers Football Club PLC. The company was not insolvent and if anyone has brought the game per se into disrepute it has been the bankers, lawyers and insolvency practitioners. The failure to pay ticket monies to Dunfermline could easily have been remedied since on 12th February 2012 there was over £3m in the company’s bank account and the SFA hearing was rescheduled to a date when your firm were (unfortunately) administrators and could have paid that.

At all material times you were aware that Craig Whyte had been a disqualified director even though his disqualification period ended in 2007. There was per se nothing unlawful in him participating in the management of any company yet his fear of exposure induced him into taking actions that he would not normally have taken.

Whyte however, was made to believe that if the said information came to light he would face ‘serious consequences’ and possible ‘criminal sanctions’ according to an email that I have seen from MCR BC to Mr Whyte. As I have stated publicly fear is the fuel of blackmailers and directly and/or indirectly Mr Whyte was placed in a position whereby he feared exposure. When Mr Whyte was no longer prepared to ‘pay the exorbitant professional fees,’ in exchange for his antecedents not being revealed, a member of MCR BC ‘tipped off’ the BBC into his antecedents which permitted the BBC to film the expose on Mr Whyte.

Mr Whyte was also persuaded into appointing your firm as administrators in order to (according to an email) ‘soften the blow’ and allow him to escape any potential penal sanctions. Since this debacle has tentacles at the very pillar of Scottish society financial, professional and political only if your firm obtained the appointment could much of what was known to many be not exposed.

The rest is history.

I submit that Rangers Football Club PLC has (i) been subjected to a deliberate perpetrated fraud in excess of £50,000,000 (ii) never insolvent as it held almost £3.5 million cash in the bank as of February 2012 (iii) your appointment is seriously unfair and prejudicial to the shareholders and as a consequence as a shareholder I reserve the right to make an application in my own name to the Court under s.994 of the Companies Act 2006 evidencing the above and other material.

You will appreciate that if my contentions are correct as they are then Rangers Football Club PLC should never have faced any disciplinary from the SFA, never received a points deduction, never been made subject to Administration, never been expelled from the SPL and any other sanction that it has been subject to.

The damages to the Company and the club are recoverable from your firm, your insurers, and any third party that has acted as a result of the Administration.

I seek the return of all the monies obtained by your firm, legal fees, and any other professional fees which on a conservative estimate are in the region of £25,000,000 to be placed into an account at either the Court of Session or The High Court of Justice and that any further prejudicial or unfair acts in disposing of assets cease forthwith.

It causes no joy or satisfaction at having to submit this letter since the contents demonstrate a failure in the control systems that Parliament and the legislators have drafted and re-drafted

for the last 30 years. The tentacles of corruption here have extended even into ensuring the Parliament in Westminster adjourn/vacate the enquiry into the state of Scottish Football and the Rangers Affair sine die simply because its findings would be an alarm to the faithful supporters and those who believe in fairness and non-discrimination.

In light of the content of this letter I will be sending a copy to the SFA/SPL/SFL.

It follows that time is of the essence and I urge upon you an immediate response.

I look forward to hearing from you.

Yours sincerely

Giovanni Di Stefano

[KingKirk 25,647]

What does this All mean my nuts fried with this tbh

[boss 1,941]

GDS is a mentalist. He has got a lot of stuff wrong in his letter. I wish him well.

[don1972 491]

im lost with all this......

[tombomb 28]

Shame all of this has been done to late. I will be shocked if all true

[WilliamFyfe 1,438]

So much to read and figure out. Someone help me ?!?

[North Rd 2,860]

GDS is a mentalist. He has got a lot of stuff wrong in his letter. I wish him well.

I agree Boss, but what have we to lose, no other lawman has scrutinised this and we all know there's something wrong.

[Blue corn flakes 1,282]

I agree Boss, but what have we to lose, no other lawman has scrutinised this and we all know there's something wrong.

Most of it went over my head ffs. what he get wrong.

[Carsons Dog 9,878]

John Paul Clark?

This just took a turn for the worse

[Mr Struth 137]

He's Obviously been fed all this for some good purpose.

I would think we will see a big court case soon, and the SPL season being postponed.

[adam2102 577]

ive tried every option on google translate and still cant get it into english

[Blue corn flakes 1,282]

He's Obviously been fed all this for some good purpose.

I would think we will see a big court case soon, and the SPL season being postponed.

Aye, the media were calling Craig Whyte a billionaire and then all of a sudden! they (BBC) were going into his dodgy past.

[Shane 338]

ive tried every option on google translate and still cant get it into english

Mate, I've got you covered. This fantastic translator can be yours for just $2500USD, payable via an offshore bank account:

Just PM your details and I'll go get it out of the shed and in the post immediately.

[boss 1,941]

Most of it went over my head ffs. what he get wrong.

Even simple things like the company name Wavetower changed to - he really needs to be getting stuff like that right if he is to be taken seriously.

And his misguided belief that the balance sheet alone proves whether a company is insolvent - there's more to insolvency than that, and he should research stuff like that first.

But if he drags the SFA and Regan through the Italian courts, I'm happy to forgive him.

[SteveJ 743]

I might be wrong but whilst reading it, I had the thought that he may have had some of the info fed to him from Craig Whyte - he seems to be very lenient on Whyte

[Bheast hater 10]

Think he's saying we've been screwed over to the tune of 50 million .but I'm no sure who bye ma heed is bursting after reading that.

[BlueThunder 8,454]

I might be wrong but whilst reading it, I had the thought that he may have had some of the info fed to him from Craig Whyte - he seems to be very lenient on Whyte

I have been wondering for months how Craig Whyte would manage to change the fans view of himself so as to avoid a knock on the door late one night!

The Di Stefano stuff is bonkers. Obviously I'd like it be true but I'm struggling to see how all of this could be missed. I'm eagerly awaiting the next instalment where he unmask Liewell as the blackmailer of Whyte.

Boss, what other mistakes did the letter make?

[MisterC 12,272]

Mentalist but entertaining I dont know whether there is a lot of validity to what he is alleging and there is a ring of truth to parts of it but if he can fuck the SFA and exploit some sort of loophole to get us some of the money back then he will be a legend.

[adam2102 577]

Mate, I've got you covered. This fantastic translator can be yours for just $2500USD, payable via an offshore bank account:

Just PM your details and I'll go get it out of the shed and in the post immediately.

will this fit in my nice new shed that finally arrived?

[philiprfc 1,799]

Ach, he's entertaining, I guess.

'Please remember ALL are innocent until proven guilty i want that clearly understood but by golly gosh does this test that principle'

From the guy who defended Saddam

[Redwhiteandblue 3,330]

that is one serious allegation. Is he suggesting that Craig Whyte was blackmailed into put Rangers into admiinistration? Fucking hell.

[Teebear 120]

Even simple things like the company name Wavetower changed to - he really needs to be getting stuff like that right if he is to be taken seriously.

And his misguided belief that the balance sheet alone proves whether a company is insolvent - there's more to insolvency than that, and he should research stuff like that first.

But if he drags the SFA and Regan through the Italian courts, I'm happy to forgive him.

Wavetower is the original name for the company formed on 17th September 2010 to be the vehicle for the takeover of Rangers.. By Craig Whyte.. I know.. 3.. 2.. 1

[Redwhiteandblue 3,330]

GDS is a mentalist. He has got a lot of stuff wrong in his letter. I wish him well.

Whats wrong and how do you know it's wrong?

[Redwhiteandblue 3,330]

John Paul Clark?

This just took a turn for the worse

I know, did he get that wrong, or is paul clark really John Paul?

[Teebear 120]

I know, did he get that wrong, or is paul clark really John Paul?

Its Paul John