SLEC calles for companies to delist from
World Stock Exchange after HCB/Midas Saga

Per a statement received earlier this evening: 

After hearing testimony from individuals investigating the situation of HCB refusing to pay its dividend despite claiming to have ample assets to do so, and using said default to attempt to force Midas Bank to turn over its assets to LukeConnell Vandeverre, the SLEC [Second Life Exchange Commission] has voted in favor of demanding that LukeConnell Vandeverre pay the dividend of 650,000 L$ to Midas Commons within 8 hours.

It is the responsibility of those issuing bonds to pay dividends when they have committed to do so. Using a refusal to pay a dividend as a lever to commit a hostile takeover of a company one owes money to is not a legitimate or ethical market action. Lukes actions constitute a gross breach of ethics and a violation of the trust he holds from investors and CEOs.

The mission of the SLEC is to use market pressure and publicity to execute its enforcement actions. SLEC membership constitutes over 70 listed companies and hundreds of investors from around SL. As such, it is the duty of all investors and listed companies to divest from HCL and delist their companies from WSE. Companies that refuse to delist from WSE should likewise be divested from by the investing public. Listed Companies have 1 week from the 48 hour deadline to complete a delisting and relisting upon another exchange.

We should have a chat log from the SLEC meeting posted by the morning.

Stay tuned to SLReports.net for more information 

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SLReports.net User   | 2007-11-12 23:21:25 SL Reports seems less and less impartial with SL Capital Exchange as main shareholder ........ Is competition so hard?! Reply | Quote 0   0

SLReports.net User   | 2007-11-12 23:51:51 In response to the previous remark - what does SL Capital Exchange have to do with this story?? Can you not read... SLEC Reply | Quote 0   0

SLReports.net User   | 2007-11-13 00:13:28 and the members of SLEC are ? Reply | Quote 0   0

SLReports.net User   | 2007-11-13 00:57:46 from all exchanges nutty Reply | Quote 0   0

SLReports.net User - What a crock.   | 2007-11-13 03:55:09 Does the SLEC even exist? Crap impossible to find office. No one there (EVER) and whats the go with the website? Nothing works, I bet the members have been jipped into appearing on that stoopid list. Looks like a soap box for the exchanges to bash each other. I am a member, and I wish I wasnt...and theres no way to get off that list. Crap. And when did they vote? Who voted? Ancapex and SLCapex? Bah. Can anyone say "cash for comment"? Reply | Quote 0   0

SLReports.net User   | 2007-11-13 05:30:30 Alaways the same Anti-WSE comments from the same small group of people. Only this time under the banner of SLEC. Since its day of inception the SLEC was established and supported by individuals with an Anti-WSE agenda, be it competitors or a simple lust for power or to be seen as a public figure. Most of these people constantly work to discredit and close down the WSE where ever possible which is obviously why WSE never participated. Once again they've shown themselves to have no idea about the situation and yet they make such allegations as the ones below. It was made clear that HCL announced the deferred HCB bond interest payment decision weeks before Midas Group informed them of being bankrupt. Reply | Quote 0   0

SLReports.net User   | 2007-11-13 06:47:13 "It was made clear that HCL announced the deferred HCB bond interest payment decision weeks before Midas Group informed them of being bankrupt" HCL defaulting on a bond payment, doesn't make their actions right just because they announced it two weeks ahead of the default. In real life, HCL would have been forced into bankruptcy by the bond holders. The bigger question to all of this is not the Midas bankruptcy or HCL forcing Midas into bankruptcy, but why did HCL really not pay the interest that was due to the bond holders. The question is even more important since HCL is taking a very active role in policing the securities listed on the WSE while mismanaging their own securities. Reply | Quote 0   0

SLReports.net User - interesting   | 2007-11-13 07:15:24 I think I read in the TOS, or somewhere on wse site, that companies are under no obligations to pay promised dividends, or something like that. So, irregardless of whatever companies promise, they are given that clause on wse, that they do not have to honor what they promise. If I read it right anyways. So, investors ought not to be moved by promises of dividends or bond-payments, because there is no law or enforcements to cause companies to honor their promises. Rather, it seems a matter of 'trust', or even of 'gambling' on sl stocks. Yes, gambling. So, any one who relies on dividends or bond payments, is really at the 'mercy' of the companies or persons who promised to pay the dividends or bond payments. I think that means that wse was unmerciful towards Midas groups. Being unmerciful is transgressions of moralities, and laws, but is not enforced, as evidenced by power being given instead to the promisers of paying the dividends and bond payments. Power is not really in the hands of those 'at the mercy of others'. Rather, the power is in the hands of those whose choice it is to be 'merciful' or 'unmerciful'. So, as far as I can tell, Midas companies are/were quite helpless, and at the mercy of wse, due to clause that says that companies do not have to pay dividends they promised to pay. I think those are TOS of wse? But, it might be that wse TOS are in error, or transgression? But, where is the law, in sl?? If there is no law in sl, then how can there be any transgressions? Rather, it is moralities, and philosophies, and religions, and we are all 'at the mercies of one another', it seems; but obviously self-interests lead men to be unmerciful towards others sometimes? Midas companies erred, by placing themselves at the mercies of wse, perhaps? Over-reliance on the potential 'mercies' on any one particular dividend or bond-payment issuer; where that trust was 'betrayed', but with the prior clause stating that companies on wse do not have to pay what they promise to pay? But, I do not think SLEC has been given power and/or authority to 'command' men like the article is showing. Men do not have to obey SLEC. Or, maybe I ought to ask the question 'WHO GAVE SLEC THIS POWER AND AUTHORITY?'(I don't think anyone gave them this power/authority) Reply | Quote 0   0

Laughing Hard - SLEC Has No Authority   | 2007-11-13 07:44:35 For some reason, the SLEC thinks that they have some sort of authority to come in and direct how companies should be listed. "The mission of the SLEC is to use market pressure and publicity to execute its enforcement actions." Market pressure and publicity being used as enforcement? Who the hell wrote that, anyway? To come in almost two weeks after-the-fact and have a hearing on the HCB / Midas bullshit and then "DEMANDING" that Luke pay the dividend is very laughable. I made that determination, as soon as I heard about it. The fact is, the way this current so-called SLEC is managed, coupled with the fact that anything they say is "old news" means that the current form of the SLEC must be taken apart. No member of the current SLEC directors needs to be a part of any future group that sets trading regulations in-game. The current SLEC is a joke, and the joke keeps getting funnier and funnier. Reply | Quote 0   0

SLReports.net User   | 2007-11-13 07:46:40 It's a little unfair to say that the SLEC has an anti-WSE agenda when a fair amount of the SLEC membership is made up of WSE companies and WSE investors, most of whom still somewhat believe in the principals the WSE trumpets, but rarely practices. If the WSE was to step up to the plate and participate in helping to create a universal SL set of standards instead of being obscure, shady and monopolistic they might find a more receptive audience and a new investor base. As far as the bond interest, perhaps the WSE should have done a more thorough financial check to ensure they could pay out the interest AS PROMISED before they took anyone's money. I find it interesting that most of the excuses used to defer payment on the bond interest occurred months before the issuance of the bonds, therefore WSE should have known they would not be able to pay out. Talk about undermining investor confidence… In regard to the SLEC, it's actions are not that of a regulator or enforcer. Its like the SLBB in this manner. They have never played or tried to play an enforcer role from what I’ve witnessed. The actions of the SLEC in the beginning were to create a common ground and protect the investor, however it became apparent that some exchanges had no interest in finding a common ground. I think the SLEC is now trying to find a role as an enforcer without a stick. Perhaps it should go back to trying to unite and focus on finding core transparencies for SL publicly listed companies. Reply | Quote 0   0

SLReports.net User - Interesting2   | 2007-11-13 08:26:34 I forgot to mention that in real life, this type of matter might not get 'reconciled' very quickly; and if it did go to court, it might drag on for a period of time. During this 'lag' time, the company 'at the mercy of' the other company is sort of left in limbo. Does wse have the 'right' to make up its own TOS, that grants a clause to companies on wse, whereby they do not have to honor thier promised dividends and/or bond payments? If wse does have this 'right', then who gave wse that 'right'? If wse doesn't have this 'right', then perhaps SLEC is correct??? I think this is also a matter that is connected to an article, I read on 'virtually blind' website, in an article titled 'CLICK TO AGREE'. I also think it has to do with LL TOS, and with the concepts of 'fictional currency' or 'chips' or 'virtual currencies'. Perhaps, 'HE WHO GAINS POWERS/AUTHORITIES OVER THE CLICK TO AGREE BUTTONS' WINS???? Or, perhaps he who finds more justifications, in regards to 'click to agree' buttons, might 'win'? I think this is connected to the 'will of man', and 'whose will is going to be done'. Anyone believe in Jesus here? Jesus was involved in a huge will 'struggle' or something like that in the garden of Gethsemane, just prior to being tortured and killed, and jesus said 'If it be possible, take this cup away from me', 'but not my will be done, by thy will be done'. The 'click to agree' issues are sort of 'whose will be done' issues. Reply | Quote 0   0

Cash Yiyuan   | 2007-11-13 08:52:14 It would be nice to see people register on the site when they are going to comment. Reply | Quote 0   0

SLReports.net User - very troubling   | 2007-11-13 12:01:05 It does seem as though alot of power is given to the writers/owners of the TOS of these various entities. Why is there so much power given to these TOS??? Once men 'click to agree', it seems like futility to try and come against the TOS? I wonder if maybe the regulating authorities might try to come up with something, so that consumers are protected, irregardless of whatever they 'click to agree' to??? It seems that men give up powers, or much powers, by clicking to agree with some of the TOS??? Therefore, frustration arises if/when men are allegedly offended?? Because they gave away all their power by 'clicking to agree'??? Shouldn't it be an 'offence' to tempt men, and take away their power like this??? What do other people think? I am very troubled by this. Reply | Quote 0   0

SLReports.net User - terms of service   | 2007-11-13 16:04:06 The entire point is that consumers have the choice to read the terms of service before they agree. If they don't read them and select agree or they ignore them then they are literally saying they don't care. If something happens that they don't like they can't complain because they should have read the terms of service before they proceeded in the first place. This is the same issue in real life as well. Consumers choose not to read the terms of service and therefore agree to whatever the service provider says. Reply | Quote 0   0

Arbitrage Wise - NOT a Capex thing   | 2007-11-13 18:22:53 Just wanted to clarify that this has nothing to do with SLCapex. Reply | Quote 0   0

LukeConnell Vandeverre - WSE Update   | 2007-11-15 17:57:56 Dear My Fellow SL Residents, There has been a claim by a group called "SLEC" or Second Life Exchange Commission that CEO's delist or for shareholders to sell their shares. The SLEC is not what it once was, it is now a front for IntLibber Brautigan to help him promote his new exchange and to allow him to try and create negative press about the WSE which he has always done since we left his land due to him trying to force WSE on a decision that wasn't in the interests of the market but his land business. The announcement was directly posted to SLEC members by IntLibber Brautigan and only goes to confirm the above. They allegations made by IntLibber concerning the Midas Bank situation are completely inaccurate. Hope Capital announced that it would be cancelling the bond interest payment and dividend. These payments have been deferred and are to be paid at a future date. Approximately 3 weeks later Midas Commons contacted me and asked if we were paying the interest. He had not read the announcement concerning his major investment and only read it after I asked him to at least 3 times. Once he read the announcement he said that he would be bankrupt without as he would have no lindens for his bank depositors along with no lindens at all for commitments to his companies listed on the WSE. I explained that we would not be changing our own financial decisions no matter what his financial position. He then repeated that he is bankrupt and that we must pay him the bond interest payment along with making many threats and demands. Midas was clearly bankrupt and in distress and after showing signs of financial distress in the month leading up to this situation. The WSE made a decision to lock his WSE account in order to prevent him from dumping his assets on the market, crashing prices and leaving SL which is a situation that has occurred to often in the past with other SL banks. We informed Midas of these actions and requested that he supply the avatar names and balances of his bank depositors so that we could also allow them to benefit from the actions taken by WSE to ensure that users will get the best possible return on their deposits. To date Midas has only offered to provide such a list if Hope Capital honour his deposits of between 6 to 10m lindens in OurBank. Hope Capital isn't going to take on responsibility for an additional L$6-10m debt that was created by Midas Commons. There is also the potential for him to create false accounts under alternate avatars that would allow him to allocate himself huge balances and therefore steal lindens from the system. Since Midas is bankrupt, a word he repeated multiple times to me, the WSE then delisted his listed companies and transferred all shareholders, shares and bonds of Midas companies to the WSE Traders Fund. We also removed any shares owned by Midas Commons in his own companies so that there Net Asset Value would remain close to what it was prior to the delisting of Midas companies. This situation occurred approximately 3 weeks after Hope Capital had made its announcement concerning the bond interest payment and dividend and the decision has nothing to do with Midas Commons or an alleged takeover attempt. The WSE Traders Fund shareholders own former Midas assets not HCL or the WSE. There are over 25,000 WSE users of this less that 500 would even know what the SLEC was or is and even less would know anything about the Midas situation or the announcement by SLEC as their reach, membership and exposure to the market is limited. The demands by the SLEC should be taken as a grain of salt and not taken seriously. The WSE does not acknowledge or endorse the SLEC for a number of reasons mostly as it is yet to follow up words and intentions with actions such as offering educational information to SL traders etc. The WSE now has come along way since the 7th March 2007 to become the leading Internet based Stock Exchange system focused on virtual companies in Second Life. Since being established it constantly overcomes any challenges it faces while improving and growing to provide users with and the world with a fully interactive trading experience. The WSE has achieved over 25,646 accounts, raised IPO's over L$129,551,917.70, WIC$1,809.15, Secondary offers over L$27108766.30, WIC$2991.23 and had exchange turnover exceed L$509,690,788.19 The WSE is progressing well. We have been aggressively cleaning up the market, making sure CEO's keep the market updated and delisting any companies that fail to adhere to the WSE Constitution, Listing Rules and Terms. We have also been extremely busy developing the very latest version of the WSE Platform called WSE 4.0 which is progressing well and we expect the new website design, layout, functionality and services should be completed by the 25th of December 2007. We are cleaning up the market and developing the WSE trading platform ready for our worldwide launch of the World Stock Exchange to the mass market as the worlds leading internet based stock exchange platform to be used for educational and entertainment purposes. We expect majority of future WSE traders will be general Internet users with a browser using the World Internet Currency as their chosen currency for trading on the WSE. We expect that trading volume will exceed L$10m lindens per 24 hours with excess of 50,000 new WSE traders participating in the market. We ask for your patience, continued support, continued regular updates to the market such as monthly announcements and financial reports while we complete this final major phase of the WSE's development and growth. Before making any decision or taking any actions I always make sure that I'm fully aware of the possible consequences. Every decision I make or action I take are made in the best interests of the majority of stakeholders at all times. There are times when we as leaders must make decisions that can lead to some negative consequences in the short term in order for us to make a greater positive impacts in the longer term. It is for this reason that WSE is still operational when many other virtual businesses and bank are not and it is for this reason that the WSE is on the verge of major growth. Kind Regards, LukeConnell Vandeverre, Chairman & CEO World Stock Exchange (WSE) www.wselive.com Reply | Quote 0   0

SLReports.net User - The WSEard of Oz   | 2007-11-15 23:37:44 Weeeerree OFF to see the WSEard, the Plunderful WSEard of Oz!!! PAY NO ATTENTION TO THE MONEY BEHIND THE CURTAIN! I AM THE GREAT AND POWERFUL WSEard of OZ!!! Reply | Quote 0   0

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