How did the Government of Canada ended in business with Purthanol linked to allegations of insider trading and securities fraud?

 

http://www.amazon.ca/gp/product/B00PR35MEO?*Version*=1&*entries*=0

If you were to do a search on Purthanol, you would find the following
https://twitter.com/purthanol_news/status/589685115501973504 or http://www.purthanol.com/ . The web site of this company is now suspended for allegations of securities fraud.

How did the Government of Canada ended up in business with such a company?

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Millenia Hope:

My investigation of the activities of Purthanol started three years ago when I started to look at the fraud behind Millenia Hope trying to understand why Millenia Hope was not stopped in Quebec and why the regulator the Autorite Marche Financiers did not prosecute the executives of Millenia Hope for not respecting the undertaking agreed with the administrative tribunal Bureau Decision et Revisions. Millenia Hope, incorporated in Delaware with its head office and operations in Quebec, was a pharmaceutical company that supposedly had developed a new type of medication for malaria. http://www.prnewswire.com/news-releases/millenia-hope-biopharma-announces-the-opening-of-its-new-facility-in-kirkland-quebec-55848737.html

 

In our investigation of Millenia Fraud, we were able to uncover documents clearly showing that the executives of Millenia Hope had made false statements in annual statements filed with the SEC in regards to clinical trials made in Africa which demonstrated that the medication did not work. https://911insurance.wordpress.com/2014/04/11/millenia-hope-the-proof-is-in-the-fraud/

 

Not only this, we discovered that some of the clinical trial directly run by Millenia, had been done is such an amateurish way that many people suffered severe and life threatening illnesses from the taking of the medication. We informed SEC of our findings. Finally the AMF after years of inactivity brought charges against the executives of Millenia Hope:
http://www.lautorite.qc.ca/en/press-releases-2013-corpo.html_2013_penal-proceedings-related-to-illegal-distributions-of-millenia-hope24-09-2013-10-5.html

 

Global Biotech:

 

Millenia Hope was a company with a lot of tentacles and many of its executives were also involved into Global Biotech. Global Biotech was involved with bringing to the market oxygenated water under its beverage AquaBoost. As a result, we shifted our investigations to this company to verify the allegations it was making its press releases and annual statements filed with SEC. We interviewed the owner of the plant where Global Biotech was supposedly going to produce this water and it was clear that the statements made by the executives of Global Biotech were grossly exaggerated. http://www.bloomberg.com/apps/news?pid=newsarchive&sid=ayDcUzifZszg

 

Purthanol:

 

While we were investigating Global Biotech, we learned that Global Biotech was ending its involvement with oxygenated water and was now getting into the business of Biodiesel which was the new fraud frontier around the world. Global Biotech changed its name by acquiring Purthanol http://www.prnewswire.com/news-releases/global-biotech-corp-announces-purthanol-acquisition-223311441.html . As a result we shifted our investigation to Purthanol quickly finding out that Purthanol had plagiarized the claims of another company called Tectane:
http://www.lautorite.qc.ca/en/press-releases-2012-corpo.html_2012_tectane-technologie-2012-02-20.html.

 

Biocardel Quebec:

 

Biocardel was a biodiesel company which had closed its so called operations in Vermont under suspicions. It is therefore amazing that the Government of Canada decided to invest almost 19 million of dollars of tax payer money into this company when there were doubts about the reputation of the company. It is therefore not surprising that Biocardel prior having to deliver the local jobs it had promised decided to sell its operations to Purthanol.
http://www.nrcan.gc.ca/media-room/news-release/2010/2787
http://www.baystreet.ca/viewarticle.aspx?id=424662
It was absolutely amazing to see that Purthanol (with no experience in Biodiesel) was able to acquire a company where the Government of Canada had invested almost $19 millions. We questioned the Minister of Natural Resources as to what was happening to this investment. We never received an answer to this email:

 

Email: April 9th 2014

 

Dear Minister Rickford, (Department of Natural Resources, Canada)

 

Reference: 19 million reasons why I am asking an answer regarding Biocardel/Purthanol/Global Biotech

 

On February 15th, I sent an inquiry to your department regarding the sale of Biocardel to Purthanol where in 2010 the Department of Natural Resources agreed to invest $19 million of dollars over 7 years in Biocardel for the production of biodiesel. I was asking whether the amount of money invested by the Canadian government had achieved the goal of producing biodiesel. I wanted to know how many jobs this use of taxpayer money created. I also wanted to know whether the Department of Natural Resources would continue with its investment considering the reputation of the people involved and who are behind Purthanol.

 

I was therefore a bit surprised by the lack of response from your department. I am certain that you would not miss the opportunity to tell a taxpayer like me how great of a job you are doing and how the use of the taxes I am paying generate jobs and new opportunities for Canadians.

 

I have to say that from the start I had my doubts about this investment in Biocardel. After all Biocardel left suddenly the town of Swanton Vermont unable to live up to its promises and obligations living behind a debt of about $700,000. If Biocardel failed in Swandon, why would it succeed in Richmond Quebec?

 

Now Purthanol is buying Biocardel and I have to say that I have even more reservations about this investment of $19 million using my money; the taxpayer money. Therefore I am owed some answers before any more of taxpayer’s money is invested in this company.

 

Who is Purthanol as this is a company with no history in biofuel? In fact the greatest claim that Purthanol can make is to have plagiarized some of the business plan, word for word, of Tectane Technologies. By the way, in 2012, the Quebec regulator (the AMF) brought 138 charges against Tectane.

 

In fact, Purthanol has been bought, selling its name to a company named Global Biotech which is truly the company that is buying Biocardel for $5 million which is quite a feat for a company which never made any revenue or profit for more than 10 years and which has an accumulated deficit of many millions of dollars and not even enough money in the bank to buy a new car. The last venture of Global Biotech was the development of oxygenated water which was a joke and its business plan was only made of outrageous claims in order to boost its share price in the over the counter market. When no humans would accept to pay a premium for oxygenated water, Global Biotech believed that the solution was the pet market and that pets would demand oxygenated water therefore showing either more intelligence or stupidity than their human masters.

 

Is the$5 million buyout of Biocardel a scheme to divert taxpayer’s money that should be used for job creation and development of new technologies? In other words, the only way I can see Global Biotech being able to do this buyout is by using the reminder of the $19 million grant it will now receive from the government. So the owners of Biocardel will be able to take this $5 million subsidized by the taxpayer as pure profit since they will not have to reinvest this amount in job creation… A simple and effective scheme…

 

Behind Global Biotech is a man named Leonard Stella. Stella and his gang have quite a track record behind them. Having investigated Stella in his involvement in the company Millenia Hope, I can now state that the claims made by Millenia Hope and by its CEO Stella were fraudulent. It took me two years to find this proof. A lot of people lost a lot of money resulting from the claims of Stella about Millenia Hope. Stella and his gang are now facing charges by the Quebec regulator which is the AMF. Those involved in Millenia Hope are now facing 106 charges and Stella specifically is facing 36 charges.

 

Your government has closed fisheries offices across the Maritimes resulting in loss of jobs which has impacted needing rural opportunities. Your government has cut in veteran affairs. When hard working Canadians are suffering from the results of the decision of their government; when those who serve this country do not get the services they are entitled for; then I have a problem with investing millions in unproven companies which do not have a clean track record such as Biocardel. However you can be certain that I will not accept and I will not stand idly by while you give millions of taxpayer’s money to individuals such as Stella. As a result, I am entitled to an answer from you. Have you cancelled the reminder of the $19 million investment or will you give the hard earned money of Canadians to known fraudsters?

 

I hope this time I will get an answer.

 

Richard Proteau
Financial Services Consumer Advocate

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