The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Government was last night urged to be “mindful of its own legislation” after it seemingly rejected protests not to issue a web shop gaming licence to Craig Flowers’ FML Group of Companies.

Craig F. Butler, the attorney who urged the Minister of Tourism not to issue a conditional licence to FML, told Tribune Business: “The Government has issued a conditional licence, and I’m still hopeful that given the information provided to them, they will allow the court process to take place and be mindful of their own legislation.”

Mr Butler had written to Obie Wilchcombe on behalf of his client, Albert Rahming, who is embroiled in a legal dispute with fellow former shareholders in the Fantasy web shop chain - a company that was taken over by FML earlier this year.

Mr Rahming is alleging that the sale of the Noble Stakes Ltd/Fantasy web shop group to FML was improperly consummated.

And he is further claiming that he has yet to receive a cent from the deal, despite owning 38.125 per cent of Noble Stakes’ equity, thus alleging that the company has been ‘sold out from under him’ without his knowledge or approval.

Mr Butler, in an October 13 letter to Mr Wilchcombe, said his client was seeking to gain Supreme Court permission for a “shareholders action” against the Noble Stakes’ acquisition using the provisions of the Companies Act.

“I.... wish to voice an objection to the FML Group of Companies being granted a license at the present time as a result of pending litigation before the courts,” Mr Butler told Mr Wilchcombe.

“Depending upon how the court should rule, the same [the action] could have a deleterious effect on the suitability of the FML Group of Companies to be license holders.”

Mr Butler also complained that he had “yet to receive even an acknowledgement” of the two previous letters he had sent to Verdant Scott, the Gaming Board’s secretary, on the matter.

The Government, and the Gaming Board, have so far yet to agree, as FML was one of the eight applicants to yesterday be awarded a conditional gaming house operator’s licence by the Government.

The licensing and regulatory process is not over yet, though, with the eight having to pass other due diligence and supervisory hurdles - thus giving Mr Butler and his client some optimism that their intervention may yet have a chance.

The eight operators’ licences, prices at $250,000 each, could net the Government $2 million in revenue, with more coming from the premises and agent licences.

Deyvon Jones, the president of the former ‘Fantasy’ web shop chain, told Tribune Business on Tuesday that it was “insolvent” and unable to pay its bills, which was why Mr Rahming had not received a cent from the FML takeover.

He also accused his aggrieved ex-business partner of abandoning the company and burdening him with thousands of dollars in debts

Mr Jones said the attitude of Mr Rahming and his camp appeared to be ‘if you don’t give us money, we will make a big stink of this thing and try to create problems for FML in getting a licence’.

“Nothing they’ve presented has any proof or merit,” Mr Jones told Tribune Business. “They’re making very wild allegations, and hoping something sticks. It’s just nonsense.

“Now it’s to the point where it’s getting nasty, and they’re trying to make it nasty. They know it’s a bogus action. It’s malicious. They are desperate. This is not the way to do it.

“He [Mr Rahming] wants something for nothing. He wants a free ride. He’s made hundreds of thousands off my back. I brought him into the business, and at some point he has to be a man.”

But Mr Rahming alleged in an October 7 affidavit: “The basis of the complaint is that the company assets have been sold void of any shareholder resolution, full authorisation or shareholder remuneration.

“Further, I am concerned that shareholder assets and creditors of the company have not been considered or protected.”

This, he alleged, violated the Companies Act.