We have already included links to many legal proceedings in which Erwin Singh, potentially the largest investor in YES Bank’s proposed capital raise, is involved. We dug up some more. The more we read, the more uncomfortable we get about his credentials and the more confident we get that RBI will reject the application seeking approval for him taking a 25% stake in YES along with SPGP. Why would the central bank hand over a controlling stake in an Indian Bank to someone who is tagged as bankrupt? It may be noted that RBI approval is required for any stake more than 5%. If RBI is not convinced about the fit and proper status, getting approval for a 10% stake will be difficult, let alone the proposed 25%.
We list below all the legal proceedings with links:
1. Erwin Singh did not pay up for a Chapter 11 mine (Buffalo Mine in Oregon) that he bid for in 2013. Eventually the mine was sold to another buyer.
· Erwin Singh agreed to buy Buffalo Mines in Grant County, Oregon which was up for sale under Chapter 11 in 2013.
· However he did not pay up on the due date which was in 2014 and the counsel of the debtor complained to the Court.
· Documents of 2017 show that the mine was eventually sold to some other entity not associated with Braich.
The following links give details about the case
2. There are multiple posts on social media by a person called Sunny Chopra saying that Erwin Singh has not paid him USD 250,000 for a contract he wrote
· A person called Sunny Chopra has put multiple posts on social media alleging that Erwin Singh did not pay him USD 250,000 for which he had already signed a contract.
· Chopra has written that his magazine KiDDAA Magazine supported Braich during his bankruptcy and was shut down in 2010 by BC Supreme Court on the complaint of KPMG. Braich argued with KiDDAA’s help that his bankruptcy was invalid and forced. Braich had entered a contract with Chopra to buy out his KiDDAA magazine for USD250,000.
· In Jan 28, 2013 Emmet Tisdale Pierce, Erwin Singh’s partner took all KiDDAA websites, blogs, and passwords according to Chopra. Pierce maintained that Erwin Braich would pay for KiDDAA Magazine but eventually Erwin Singh did not pay. We post below a link to the blog written by Sunny Chopra on this issue in 2014. We note that even in recent facebook posts Chopra continues to allege that Erwin Singh has cheated him.
3. In 2015, Erwin Singh filed a false acquisition notice for Karnalyte Resources which resulted in a 74% rise in stock price in a single day. His claim was denied by the company’s CEO on the following day. Erwin Singh even today does not hold a stake in the company
· On September 29, 2015 Erwin Singh announced the acquisition of a Canadian company Kranalyte Resources at a price which was 6x the prevailing price and the stock jumped 74% in one day
· . As per the announcement the acquisition agreement was already signed with the CEO.
· Next day the company c ame up with a press release that there was no agreement and that Erwin Singh’s bid was non-binding not a binding one.
· Erwin Singh never ended up buying any stake in the company.
Back ground: Karnalyte Resources Inc. was founded in 2007 and had its Initial Public Offering on December 14, 2010 directly to the Toronto Stock Exchange under the symbol TSX:KRN. Karnalyte intends to construct a 2.125 million tonnes per year potash solution mining facility using a three phase modular approach. n 2013, Gujarat State Fertilizers and Chemicals, one of India’s largest fertilizer and industrial chemicals manufacturing companies, made a strategic investment in Karnalyte of approximately $44.7 million, resulting in GSFC holding a 19.98% ownership stake in Karnalyte
4. Erwin Singh has lost the case and appeal against his brother. Erwin had alleged that his brother illegally transferred land parcels from the family’s estate at a very low value of USD350,000 when they were worth millions.
· According to Erwin Singh, his brother Bobby Singh illegally transferred several water front land parcels to a company Bridgewater Properties for a very low value of USD 350,000.
· Bobby Singh transferred the parcels with the signatures of his mother and elder brother but did not take Erwin Singh’s signature who was also a co-trustee.
· Erwin Singh filed a suit against his brother which he lost.
· On May 22, 2018, a Notice of Civil Claim was filed against Herbishan (Bobby) Singh Braich. This matter was heard in the Supreme Court of British Columbia, on July 31st, 2018. This case was dismissed that day due to a particularly complex and interesting legal doctrine.
· This decision was appealed on November 5, 2018 and came for a hearing on November 22, 2018. This Appeal was withdrawn that day in front of the three presiding Court of Appeal judges. According to Erwin Singh’s aides “ Due to deficiencies in Canadian law, this matter did not go forward.’
5. Erwin Singh and associates have alleged that his conspirators have not only illegally possessed / stolen his assets in Canada but also in Bulgaria where his oil refinery and fertilizer plant were stolen. Details in this video https://www.youtube.com/watch?v=LgIDvv7wvaw
6. His aides have written blogs in Erwin Singh’s favor and said proof is available on a website called www.justiceandtruthforall.org We had accessed this website last Friday and Saturday but the website is now suspended.
7. A dramatic insolvency story: Erwin Singh has not been discharged of his bankrupt status
· The whole story around Erwin Singh’s insolvency is deep and dramatic. More importantly most articles other than actual court filings are written by Erwin Singh’s aides so we know only one side of the story.
· While there have been been some favourbale remarks from a judge on Erwin singh in the hearing on the suit filed by him against the Canadian government for dragging him into a false insolvency, his own website says that he is not discharged of his bankrupt status. This statement is as of March 27, 2019.
The key highlights of his insolvency proceedings :
· Mr Braich in 1998 tried to raise 150MUSD of capital which was obstructed by his ‘enemies’ including his brother. Because he could not raise capital in his personal capacity through his firm Braich Capital Corporation, he had to take personal debt. He also needed money to pay for his divorce as rules around divorce payments and child maintenance changed around the same time.
· His btother teamed up with some of his creditors to declare him bankrupt
· He was falsely petitioned for bankruptcy in 1999 by his brother Bobby Singh and his aides.
· While he was travelling his brother sent him a bankruptcy notice, broke into his flat and received the letter by forging Erwin Singh’s signature. That is how bankruptcy proceedings were initiated. According to Erwin Singh, his brother Bobby Singh was the sender and the receiver of the insolvency petition while he was travelling.
· To prove that his assets are higher than liabilities, his lawyer travelled to East Europe in Oct 1999 to verify his assets and came back with the analysis that his assets were higher than liabilities. But due to judge shopping, his solvency could not be proved and the proceedings continued.
· There are blogs written by Erwin’s aides on how KPMG (the administrator / trustee) and the entire government machinery connived to prove his bankruptcy.
· Erwin Singh filed a lawsuit in Vancouver, British Columbia, against the Public Prosecution Service of Canada, Crown Counsel Gerry Sair, the Royal Canadian Mounted Police and Constable Wendy Saint-Onge on Friday, October, 12, 2012.
· It may be noted that the Department of Justice of Canada did make some positive remarks about Erwin Singh’s civil rights but Erwin Singh has not be discharged of his bankrupt status to date.
Key links below:
8. Erwin Singh on his website has promised to pay his debtors but has not yet done so which is why his bankrupt status remains
· “It is anticipated that all of my lawful creditors, as at October 1, 1999, will soon be receiving all funds due to them and owed by me. These repayments will include the original loan amounts, approximately eighteen million dollars (CDN $18,000,000), plus compounded interest, at the rate of interest equal to the Canadian chartered banks prime rate plus one percent, for the past nineteen years. This total amount will approximate thirty-nine million dollars (CDN $39,000,000).
· “Due to the level of interest in the previous post, it warrants clarifying certain issues. There is no court Order, pronouncement, or decree, nor is there any regulatory or government agency requiring the above payments. I am doing this simply to protect and preserve my reputation and integrity.”
9: On his website Erwin Singh claims that the market cap of his assets based on independent valuations is USD25-30bn but there are no details of the assets or valuation methodology. In fact there are no financial details available about Erwin Singh except that he has been tagged bankrupt.
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