The Outsider (Outsider #1) ✔️

Chapter 110 : Cartier Fruit Aftermath

BFNN Premier (Taken from Website)

Headline News : Longburn Village Mayor under investigation by ISEMB (Imperial Security Exchange Monitoring Board). Rural Students Association earns $750,000 in profits.

The Mayor of Longburn, the Hometown of Student Entrepreneur, Dusk Hale, has been asked by the ISEMB to appear before it this morning for investigation into allegations of illegal stock trading and insider trading.

The Mayor himself was not available for comments as he was travelling to Regis. His assistant, however, said that all trades the Mayor has done in the last 3 days was on behalf of Rural Student Support Forum and he himself does not do any stock investments. The Financial Advisory firm Lucifer Turk Finance Associates, based in Turq, Arcadia, confirmed to BFNN that they had set up a stock trading account in the name of Rural Students Support Forum sponsored by the Mayor of Longburn. They had not considered it inappropriate since the Mayor of a Rural District would be a natural sponsor of such an association. The Managing Partner of the firm has also been called to Regis by ISEMB.

Lucifer's Jr Partner informed BFNN that they had started buying common stock of Cartier Fruit Masters Inc. at 11 am 3 days ago, within 10 minutes of creating the account. Money was transferred to the investment account in bits all day with instruction to buy shares of Cartier Fruit Master Inc. A total of 3.5 million shares were purchased by the association, at an average price of 39 cents a share. The current price of the shares stands at 68 cents, which means the association has made a profit of just over $1 million in less than 3 days. The prices are still going up and expected to hit $1.25 per share according to experts.

Discussion with Mayor's office indicates that the investment of $1.4 million has come to the association from 12,000 individual rural students. The Longburn Mayor's office said they have details of each transfer and when the shares are sold, the profits will be shared proportionately. A document posted in the association's social media account reflects that the Mayor has declined to take any fees for doing their investments. He is also not providing them with Financial Advice.

It appears (but cannot be confirmed as ISEMB has sealed records of investors) both children of the Mayor are members of the association and invested their pocket money. Dawn Hale, sister of current owner of Cartier Fruit Master Inc. is also a member of the association. She refused to comment on her investment.

ISEMB is investigating Mayor of Longburn for the following violations:

1. The stock trading account was opened by an individual without registering the association itself as an AJP (Artificial Juridical Person).

2. The Investors, (members of the association) should have been doing individual trading and not putting money into the account of the Mayor. The transfers can be due to Extortion, Threat, Money Laundering or Coersion.

3. The Rural Student Support Forum charter does not have 'investment vehicle' or 'group investing' as a purpose and therefore the investment may be considered as illegal.

4. Many of the students may be below age of consent for investment made. If the parents do not immediately give their consent, it could result in civil or criminal action against both the Mayor and the Financial Advisor running the stock trading account. (Considering the profits made by the students, it would be stupid for any parent to object because they would only get original money and not profits.)

5. In view of the connection between the Mayor as well as Dawn Hale to the current owners, possibility of insider trading needs to be investigated.