If anyone here is facing potential losses due to the situation at this company, there is now an action group!

I urge anyone facing a loss to register with them ASAP, as a group stands more chance of success than individuals standing alone.

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ACTION GROUP!

Clond is running this now as


Email to : Crislond@hotmail.co.uk

Stating amount of shares held and broker name ie natwest/tdwater
held nominee/certifiacte
home address
real name

you recall the recent case where a halifax building society member found a staff members IOU in the safe for 8,000,000 and the staff member had borrowed that eight million
well a similar thing has happened here. there was no cash in the bank....... just an IOU in the shape of a worthless loan note.
in addition i suppose in south america banks come in different shapes and sizes of security and integrity

anyone who has lost money has been very very foolish to believe that one could buy 10 pound notes for 1

mpw777,

"anyone who has lost money has been very very foolish to believe that one could buy 10 pound notes for 1"

That puts it in a a nutshell, IMO.

goldfinger,

This is a briek synopsis from This is money.

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This is Money

Langbar shareholders in limbo

Michael Clark, This is Money
25 November 2005

THOUSANDS of private shareholders in cash shell Langbar International face the prospect of losing their money after the company admitted it may have been the victim of serious fraud.

Langbar had claimed it had rights to 365m worth of cash deposits held with Banco do Brasil in Rio but an investigation has found that the money may not exist.

The shares were suspended on October 12 while risk consultancy firm Kroll investigated the validity of the deposits. The company had only announced on 6 September that it managed to release the funds from Brazil to ABN Amro in Amsterdam.

In a statement the company said: 'Kroll has reported to the board that, following its initial investigations, it appears likely that the company has been subject to a serious fraud affecting the relevant assets.

'Kroll has not been able to establish the existence of, nor verify the company's entitlement to, any of the relevant assets at any time in the company's history.'

Suspicions were raised after majority shareholder and former chairman Dr Mariusz Rybak dumped a large chunk of his shareholding without informing the market.

The company, previously known as Crown Corporation, was popular with private investors due to the fact that its supposed Net Asset Value was significantly above its share price.

At the time of its interim results on 30 September, chief executive Stuart Pearson said the NAV was 205p per share when the actual share price was bouncing between 75p and 85p.

However, the high NAV was dependent on the Brazilian funds existing and fears over the cash deposits validity sent the share price down to 50p at the time of suspension.

Langbar said that it has informed the police of the alleged fraud and would take legal action against any parties involved. Private shareholders of the company have already started an action group to try and claw back some of their money.

As a result of Kroll's finding, Langbar has pulled out of a deal to buy Aim-listed marketing minnow Real Affinity.

Company spokesman Michael Padley said: 'It's all very odd. A reputable firm of accountants said the money was there, a reputable firm of lawyers said it was there, there are written contracts saying it was there.

'At the moment there are more questions than answers. It's up to Langbar's lawyers to find out what has happened.'

The company has approximately 4m in its coffers to fund its legal action.

A spokesman for the London Stock Exchange said: 'Clearly we are taking this matter very seriously and are working closely with other authorities involved in this issue, namely the FSA, City of London Police, and the Serious Fraud Office, to whom this case has been referred. Accordingly, at this stage we cannot comment further.'

The SFO added: 'We have received a referral from the City of London Police which is currently being studied to see whether an investigation should commence.'

The Langbar story

Oct 2003: Admitted to AIM as a cash shell named Crown, incorporated in Bermuda. On admission Lambert Financial Investments, a private company also incorporated in Bermuda, acquired a 60% stake in the firm in return for 207m in the form of a certificate of deposit lodged at the Banco do Brasil. Share price was 380p on admission.

Nov 2003: Announces it has won contracts with the Argentinean government to build public works. Shares rise to over 10 per share.

June 2004: Announces it has sold contracts to Lambert for 350m, which was satisfied by a promissory note from Lambert that would mature in June 2005. Share price dropped to 370p.

June 2005: Lambert announces it has fulfilled obligations under the permissory note and another certificate of deposit had been deposited at the Banco do Brasil. Stuart Pearson appointed chief executive.

August 2005: Named changed to Langbar International.

September 2005 Pearson announces that the company had managed to transfer US$294m to the company account held with ABN Amro. Bid launched for AIM-listed Real Affinity.

October 12 2005: Investigation launched into the assets after founder and majority shareholder Dr Mariusz Rybak sells large stake without informing market or board.

November 25 2005: Kroll report questions the existence of the funds and Langbar's entitlement to them.

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2005/11/26/cnsfo26.xml

SFO inquiry on way into fall of Langbar
By Robert Miller (Filed: 26/11/2005)


The Serious Fraud Office will launch a formal investigation next week into the collapse of Langbar International, which is listed on the junior Aim stock market.

Peter Keirnan, the SFO's assistant director and chief vetting officer, is this weekend working with City of London Police and officials from the London Stock Exchange and the Financial Services Authority to determine how Langbar - which came to the market as a cash shell company incorporated in Bermuda called Crown in October 2003 - appeared to have lost its primary assets.

Yesterday Langbar, whose shareholders include fund managers Gartmore and Merrill Lynch, said that after its shares had been suspended last month it appointed risk consultants Kroll Associates to verify its cash deposits with Banco de Brasil and ABN Amro worth 365m.

Kroll reported "it appears likely that the company has been subject to a serious fraud" and the police were notified.

Shortly after flotation, Crown said it had won a contract with the Argentinian government to build public works. After the news, the shares, which on admission traded at 380p, soared to nearly 10.

In June 2004 Crown said it had sold these contracts to a private company incorporated in Bermuda for Eu350m. This sum was covered by a promissory note due to mature last June. Yesterday, however, it appeared that the primary assets of the company now known as Langbar which were thought to be certificates of deposit allegedly worth several hundred million pounds.

Last night the SFO said: "We have recently received a report from the City of London Police in relation to Langbar International which is currently being evaluated to determine whether an investigation should commence."

The City's watchdogs are working to limit any damage from the suspension of the Langbar shares and to protect the reputation of London and its financial markets.

Earlier this year rules were introduced to prevent cash shell companies with no assets at all from seeking a listing on Aim. Now they must have at least 3m worth of assets.

A Stock Exchange spokesman said: "Clearly we are taking this matter very seriously and are working closely with other authorities involved."

Meanwhile, Langbar, has instructed lawyers "to explore every avenue available for the recovery of its assets and to pursue any parties who may have been involved."

Good luck guys and while your at it get them to look into some of the posters on here and ADVFN.

Dil,

Too right!

I have never held this share, i'm just spreading the word to try and inform anyone here that there is an action group, so they can contact fellow holders.


On the subjest of the action group, here is a new email address ;

Clond is running this now as


Email to : Crislond@hotmail.co.uk

This Email is in incredibly bad taste: -

From : Fusebox - ADVFN
Subject : Sorry for your LGB Loss

Hello LGB shareholder

I am very sorry to hear about your loss in LGB.

I have experienced the same in the past and its not very nice. Well I have a good tip for you. Buy EKT (Elektron) - its massively undervalued and you will recoup a lot of your losses. The stock is being overlooked but the company is generating massive amounts of cash. If you want to get more details, visit this thread, where I post daily giving updates :

http://www.advfn.com/cmn/fbb/thread.php3?id=8548220

I promise you wont go wrong - buy the share and you will regain some or even all your losses. The company is a gem

All the best

Fusebox

This was posted over the road, no way of knowing It's genuine, but there seems little to indicate it isn;t, so posting here for any holders.


CONVERSATION TODAY WITH STUART PEARSON

Dear fellow Shareholders,

I feel as frustrated as you all with this situation and called SP twice yesterday and once today. I received a reply at 3.15pm today and spoke with him for nearly an hour. He was as upfront and as open as he could be bearing in mind the SFO and Police being involved. He explained his meetings in Brazil and people he dealt with as well as his dealings with ABN Amro, lawyers, accountants and institutions.

The long and short of the conversation is that the officials at BOB confirmed monies were there and that a tranche would be transferred onto euroclear and then to ABN AMRO in Holland. This to his knowledge was precisely what was done.

Except where ABN Amro were involved the monies were there but not posted to an account, but they confirmed that they had the money.

When push came to shove ABN reneged on what they have previously stated and this is when SP smelt a rat.

The SFO and Police have been involved for a number of weeks and quite a lot has happened in the meantime, but for reasons that are obvious he cannot divulge where they are upto but the perpetrators of this elaborate scam if it is a scam are being tracked down and more information will be released as and when it is prevalent to do so.

After my conversation with SP I believe he is the fall guy for this scam and he has promised me and all FELLOW PRIVATE INVESTORS that he will work around the clock to bring back the monies into the company.
Remember he reversed his company into this and received shares, today they are nearly worthless, he has lost as well !!!

I have been asked by SP to relate to all fellow private investors to leave him alone and let him concentrate on the matters at large, let him deal with the Police and SFO which hopefully in turn will result in prosecutions and the return of the funds back to LGB.

He stated that any private investor that wishes to get more information can email him and he will reply to each and every one of you individually.

I asked him to update us more on the situation in regard to RNS announcements and he agreed that the PI must be kept up to date and he will issue statements as and when more information comes to light and when organisations are instructed to carry out the task of retrieving our monies.

For the moment all is not lost and have some patience, I didnt until I spoke with him, but as a PI with over 100,000 invested in this company I feel that we should give Stuart the opportunity to prove to us his credibility and hopefully trace where the money is or seek recourse via the institutions, accountants or other authorities that confirmed the existence of the monies.

On a last note Stuart has had many threats. Remember this is not going to get you or anyone anywhere other than a run in with the Police and I ask of the people who are making these threats to let him get on with this job.

I feel as frustrated as you all but lets get together with SP rather than hinder him.

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As I said above, I have no way of veryfying, but it looks ok to me, and it may offer some reassurance to any holders that are worried.

Another email from S. Pearson, again no way of veryfying, so make you own minds up.

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An E-mail sent to Mr Pearson:-

Dear Mr Pearson,

Were the bank official's at the BOB 'real' or 'fakes'?

also did you actually attend the correct bank?

and who was with you when you attended the bank?

Is it correct Lawrence Graham have resigned?

Kroll have stated there are no 'assets', so what 'assets' do you hope to recover?


The reply :-

Dear Sir

Your questions are pertinent but the answers are highly sensitive to the current police enquiry and civil proceedings so I must refrain from answering.


I can say I did attend the correct bank and I went with a representative from Lambert and my non-executive director, Philip Wood. Earlier, Jean Pierre Regli also went to the bank with Nabarro Wells, the original nominated adviser to the Company.



I have not heard that Lawrence Graham have resigned.



The recovery will be from the people who confirmed to us that we had assets or have removed our assets illegally. We have started the recovery process and I assure you I will pursue any avenue open to me to restore the Companys assets.


Regards

Stuart

Off topic : Andy , Langdon is here as "Dilweed" :-)

Dil,

Thanks!