Dodgy Dave and The Greg ride again

The chequered history of MMG:SJ (Johannesburg Stock Exchange)  is indicative of the relative fortunes of Mr King and Mr Morris since its inception in 2001.The success of the equity heist in Specialist Outsourcing (which resulted in Mr King pocketing £120m, at the expense of pensioners, a charity for orphans, five of the six major banks and many others) encouraged our two antiheroes to saddle up and ride a new corporate vehicle, Financial Inshore Specialists, which was listed as Insors on the Johannesburg Stock Exchange (JSE). However both ‘jockeys’ were subject to ‘stewards inquiries’  which led to Mr King being removed from the board of the company he co-founded in 2002, and the resignation of Mr Morris in 2003. The stewards in question were the Crown Prosecution Authority of South Africa and one of their inquiries led to the arrest and subsequent trial of King and Morris on racketeering charges.

Financial Inshore Specialists changed its name to Micro Mega Holdings Ltd, and is listed on the JSE as MMG. The absence of the creative entrepreneurial elan of its two co-founders, who were both preoccupied with avoiding 40 year prison sentences, led to a decade of cautionary warnings, low trading volumes and desultory dividends. The 114.9m ordinary shares were listed on the JSE. Dodgy Dave’s portfolio of 16.75m Type A3 Preference Shares was not initially disclosed. So irrespective of how poorly the group was performing and the apparent lack of dividends, the directors could, at their discretion, decide to pay a dividend to Mr King.

There were no dividends paid until 2014 as The Scorpions had secluded Mr King’s holding, via his daughter, of 76% of the ordinary shares and his holding of preference shares. Prior to this Mr King applied unsuccessfully for a stipend from his last £7.8m which was held in an HSBC Trust in Guernsey. Mr King was broke and all his assets were being sold off. He could not pay the mortgages on his properties, which are currently £17m. The £7.8m was eventually released from its Mareva freezing and paid to The South Africa Revenue Service.

The falsifying of quarterly returns, that were a feature at Specialist Outsourcing, led many to speculate that the spectacular increase of 462% in  MMG’s Capital Market Value, in a mere 6 months, was not due to acquisitive or organic growth growth but some old-school financial chicanery.In 2015, Dodgy Dave, now ensconced as Executive Vice Chairman, awarded himself a dividend of £1,066,408 for his preference shares, £511,875 for the ordinary shares held in his daughter’s name and a salary of £215,000.

Mr King borrowed circa £2.5m to buy his shares in Rangers International Football Club plc. He has sufficient funds to pay his gardener and circa £21,812 in annual horticultural charges, but not enough to make an appreciable difference in the fortunes of Rangers.

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