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Aspen: Ponzi letters fraudulent

Jun 12 2009 19:53

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Johannesburg - Correspondence between Aspen and Barry Tannenbaum's Frankel International and Frankel Chemicals Corp was fraudulently prepared, the JSE-listed pharmaceutical giant said on Friday.

Aspen said it was aware of the existence of documents purported to be purchase orders, and other correspondence between Aspen and Frankel, "which were neither prepared nor authorised by Aspen",according to a statement from the company.

It said the documents had been fraudulently prepared "using forged purchase order templates and forged signatures, representing Aspen personnel".

The statement followed the exposure of a so-called Ponzi scheme in the media on Thursday, allegedly involving Tannenbaum who reportedly encouraged investors to put money into his companies in return for enormous profits.

The Frankel investment scheme had been described as operating as an importer and exporter of active pharmaceutical ingredients (API) - mainly used in antiretroviral medicines - from foreign countries.

Tannenbaum allegedly supported his proposition by showing prospective investors purchase orders from major pharmaceutical companies such as Aspen for the respective APIs valued at millions.

According to Aspen's lawyer Pieter van der Sandt, the company would co-operate, without restriction, with all statutory investigating authorities and comply with all legal requirements relating to the matter.

Aspen confirmed it currently purchased "selected raw materials" directly from Frankel.

However, while Frankel had been listed as an agent of Aspen for the supply of certain other chemicals, Aspen dealt directly with the suppliers, Van der Sandt said.

Van der Sandt emphasised that while Aspen had transacted with Frankel and Frankel International, it had not undertaken business with entities (which purportedly formed part of the Frankel Group), namely Eurochemicals Pty Ltd, Frankel SA, Frankel Enterprises, Frankel Asset Management, Abated Investments and the Bartan Group (Australia).

At present, there were no monies due to or owing to Frankel or payable by Aspen to Frankel, or any of its affiliates, for the alleged purchases of antiretroviral materials, Van der Sandt added.

"Aspen purchases all of its APIs, which are used for the manufacture of ARV products, from other third party suppliers."

- Sapa

 
 
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