Friday, December 12, 2008

George Economou steals $160 million from DryShips

With a pen. And the board signs off on it.

Where is the outrage on this theft? I suppose $160 million is petty change after we find that AIG burned shareholders for $150 billion, and Madoff burned investors for $50 billion, and the taxpayer is getting burned by Uncle Sam, by paying for Wall Street's sins. But let me disgress for a moment to put DryShips theft in perspective, in another theft of shareholder money, by another shipping company, seven years back. Why seven years? Because 7 years ago, Barron's was saying that Madoff's now $50 billion scheme, was a scheme, but no-one would dare question one of their own. And 7 years ago, you had the ACLN shipping scam, that all the shortsellers knew about, but no one from the SEC or the NYSE could find anything wrong. But then again, the NYSE was getting listing fees and transaction volume. And as long as their are fees, the frauds will be overlooked.

Where was the outrage on ACLN in 2001? Remember this big board listed company, that rang the bell of the NYSE while shaking Grasso's hand? This "shipper" was supposedly shipping used cars to Africa, and booking the profits? The SEC said it was an "exceptionally bold and elaborate financial fraud." Yeh it was "elaborate" all right. ACLN showed a picture of someone else's ship on their annual report, with a photo-shopped number, and nobody in Africa had seen any of these cars, and no-one could find the shipping records in Lloyds. Meanwhile, the executives involved in the scam, were dumping $50 million of stock paper in Luxembourg, Lichtenstein and the Netherlands and another $30 million in Monaco. The $117 million that supposedly existed in a bank account in Luxembourg, was as phony as the ships they claimed to own. It was a cut and pasted phony document, but since ACLN conned investors in a private placement, and the NYSE, the gumshoes at the SEC said it was an "exceptionally bold and elaborate financial fraud." Makes you wonder what the gumshoes will call Madoff's $50 billion spin! I can't wait for the euphemisms on that!

But back to DryShips latest scam. Supposedly DryShips was going to pay the inflated price of $400 million for four Panamax dry bulk carriers from it's Chairman, George Economou's company. Two of these ships are allegedy being constructed in China, and supposedly DryShips was not able to get financing for these ships. Thus DryShips is walking away, and is going to pay a $55 million dollar fee. Coincidentally, this $55 million is the same amount that DryShips was supposed to receive for selling the M/V Lacerta, of which that buyer has now walked away.

But DryShips, unlike ACLN, actually has cash on it's balance sheet, and George Economou needs to steal this money also. So DryShips is paying $26.5 million for each ship, or $105 million in total, to have the option to acquire these ships by the end of 2009 for the sum of $160 million dollars. So DryShips is paying it's Chairman, $160 million, to have the option of buying ships for $160 million, that may or may not be worth collectively $160 million today.

So let's look at this logically, comparing it with what DryShips ships. If we had a contract to buy 100 million ounces of copper at $4 a pound, and now it's worth less than $1.5 a pound, would anybody in their right mind pay $2 a pound for the right to buy copper at the price of $2 by the end of 2009? And would they pay that price to someone who may or may not actually have the copper? Then why do shareholders allow George Economou to do the same? Here's the largest shareholders of DRYS. Why aren't they complaining? And why doesn't George know if these ships are in Korea or if they are in China? Does he have a magic ship transporter?

Seven years ago, we had the ACLN scam. Now DRYS is enacting another scam, but this time it is a bit more elaborate and a bit more bold, but this time the bagholders will include banks. But just like last time, the SEC won't have a clue, until even those who are clueless will be clued in.

And the NASDAQ? The couldn't police their former chair in his $50 billion scam. So do you think that they could even follow this?


Anonymous said...

Just plane smart. Companies do it all the time. Look at CITI, GM. its the way they do business.

Anonymous said...

What you said makes no sense if you are bullish about a recovery and in that way this is a medium long option for his company. Considering the credit markets it may not be all that stupid or baseless as we presume it to be

Anonymous said...

I think the comment "Just plane smart. Companies do it all the time. Look at CITI, GM. its the way they do business.

December 12, 2008 8:03 AM"
Says it all! Not even a year later, how smart is it now?

Anonymous said...

Most importantly, an investigation should be imitated to expose the actual facts behind the collapse of Economou public DRYS, when at the same time his privately held CARDIFF is flourishing. Here we have a severe breach of fiduciary capacity trust. Unbelievable and unacceptable!

Anonymous said...

If the object of a community network is to bolt with other people, you prerequisite a group network that has lavishness of members. And Facebook once has lavishness of members, notwithstanding all the denying publicity it has received lately all round its solitariness problems. inclination all 500 million Facebook users move to Google Me? I anxiety it -- and those 500 million members are what makes Facebook so attractive.

Anonymous said...

А high qualitу сamera for a veгy attraсtive pгice or just
a bad quality ріcture? Discover on the full гeview аt http://гevіеws.
Check out my site ; how To clean Porcelain tile

Anonymous said...

A tablet and a laptop сomе together at httρ://www.еѵіеw
My web-site -

Anonymous said...

Getting а gοoԁ HD ΤV has nеver
bеen easier. Disсοver the rіght mοdel
fоr you and your pοcket ωіth our revieω аt http://reviews.
Visit my weblog ; Cool Fish Tanks

Anonymous said...

Α high quality camera for a vеry
attractive price or just a bаd qualіty piсture?
Discoveг on thе full reνiew at httр:
Feel free to surf my blog Buy 3D Glasses

Anonymous said...

Want to get a Freе iPad 3? Discover how at http://myipaԁ3.
top-informatі . If you're wondering how, it's thаnkѕ to the beta testing opеnings at Apρle.
Ѕimply test the model fоr a month and keep it aftегwаrds!
Sіmplу amazing.
Here is my homepage -

Anonymous said...

A tablet and a laptop come tоgetheг at http://www.аmsung-ativ-smart-pс-prο-700t-review
Feel free to surf my website :: anxiety attack symptoms in men

Anonymous said...

Having trouble loѕing weight? Hоw about taking a look at what is conѕіderеd to be a fat burner in a bottle?

Cheсk our guide оn how to use Rapberry Ketones anԁ get
them fοг the best ргice at http://rasрberryketones.
my web site ::

Anonymous said...

Α hіgh quality сamега for a ѵеrу attractіve price or just а bad quаlity
ріcture? Dіscoѵеr on thе full revieω
аt httр://гeviews.toρ-іnformatiοn.

My web page:

Anonymous said...

А hіgh quality camera fοr а veгy аttrасtivе рriсe or
juѕt а bаd quаlіty ρicture?
Discover on the full гeview atгmatіon.
Visit my homepage Baby Sun Care

Anonymous said...

Εveг wondeгеd how to lucid dream?
We have the solution at http://lucidԁreaming.
My web-site -

Unknown said...

black friday deals
coach outlet online
ray-ban sunglasses
lebron shoes
lululemon pants
nike free 5
oakley canada
designer handbags,handbags outlet,cheap handbags,purses and handbags,wholesale handbags,designer bags,bags outlet,handbags wholesale,cheap purses,discount handbags,handbags sale,wholesale purses,handbags and purses,designer purses
beats by dre
tory burch outlet online
soccer jerseys wholesale
chicago bulls
bottega veneta outlet
ray ban sunglasses
tommy hilfiger
air max shoes
mlb jerseys
louis vuitton bags cheap
ralph lauren outlet
abercrombie and fitch

chenlina said...

asics outlet
concords 11
louis vuitton purses
tiffany and co
gucci belt
louis vuitton handbags
asics shoes
retro jordans 13
oakley outlet
louis vuitton outlet
tods outlet online
canada goose jackets
canada goose outlet
nfl jerseys
coach factory outlet online
michael kors uk
coach outlet store online
michael kors handbags
replica rolex watches
oakley outlet
ralph lauren outlet
tory burch outlet online
ugg on sale
kate spade handbags
celine bags
true religion outlet
replica watches
oakley sunglasses wholesale
marc jacobs handbags
supra shoes
ray ban sunglasses outlet
cheap basketball shoes
tory burch handbags
louis vuitton handbags
discount jordans
louis vuitton outlet
louis vuitton purses
kevin durant shoes 2015
toms outlet
air max 90

柯云 said...

adidas factory outlet
jordan concords
nfl jerseys wholesale
marc jacobs outlet
coach outlet online
kobe 8
air max 95
michael kors handbags
kate spade outlet
nike air max uk
fitflop shoes
michael kors outlet
coach outlet
abercrombie and fitch
louis vuitton outlet
basketball shoes
celine handbags
nike roshe run
coach factory outlet
adidas superstar
toms wedges
ray bans
longchamp handbags
oakley vault
coach outlet store online clearances
michael kors uk
michael kors outlet clearance
polo ralph lauren
louis vuitton handbags
coach outlet
air max 95
oakley sunglasses wholesale
jordan retro 8
hollister clothing
beats by dre outlet
kd 8
gucci bags
michael kors outlet
cheap rolex watches

Anonymous said...

nike huarache
nike huarache
cheap oakley sunglasses
cheap nfl jerseys
michael kors outlet online
ugg outlet
nike huaraches
toms outlet store
jordans for cheap
ray ban uk,cheap ray ban sunglasses
cheap uggs
fitflops sale
oakley sunglasses,oakley outlet sunglasses
cheap true religion jeans
christian louboutin shoes
cheap oakley sunglasses
nike huarache
chrome hearts online store
cheap oakleys
ralph lauren uk
cheap real jordans

Anonymous said...

coach factory outlet
michael kors canada
ralph lauren outlet
canada goose jackets
nike shoes
adidas nmd
ugg outlet
louboutin shoes
ugg australia

Agen Resmi QnC Jelly Gamat di Bekasi said...

Thank you for sharing the information. See also information from us through the following article! Thank you :)

Obat Sakit Bokong
Obat Perut Kembung
Obat Baruk Darah