
excerpt
Although, after the meeting at Sewell’s, both Eteo and Robert began
to have second thoughts about Mario’s new company, he offered them
stock at the lowest level a new company would issue stock, and since
the control of the stock was so good, they agreed to participate. This
was despite their experience some fifteen months previously with another
of Mario’s shell companies, Target Resources, of which each of
them had taken a piece only to discover that Mario had played a bad
game with them.
Usually, when a shell company becomes available for sale, all the
initial seed stock is collected from the shareholders and all their share
certificates converted into bearer form. This means that whoever has
a certificate in his hand can cash it in at any brokerage firm in Vancouver.
Normally, therefore, bearer certs are lodged with a trustee,
sometimes a lawyer, sometimes an accountant, or indeed any individual
who can keep them safe and make them available to the purchasers
on demand.
In the Target Resources deal, all the shares had been lodged for
safekeeping with a woman associated with Mario on the understand-
ing that she would only release the shares on instructions from two
people involved in the deal.






