A judgement in an unfair dismissal between Atif Kamran and LEO has revealed the corporate is bancrupt or on the verge of insolvency.
Following his arrest in Pakistan mid final yr, LEO CEO and President Dan Andersson can be purportedly locked down unable to go away the nation.
Atif Kamran is co-founder of LEO with Dan Andersson. As LEO’s Chief Advertising and marketing Officer, Kamran is believed to be instrumental in LEO’s proliferation all through Pakistan.
On June fifth, 2017, Kamran filed an unfair dismissal declare within the UK.
Kamran’s grievance initially included extra allegations of race, faith and perception discrimination, nevertheless these have been dropped in January 2018.
In his grievance, Kamran alleges his working relationship with Andersson started to deteriorate in 2016.
Kamran was involved that Andersson (proper) was ‘issuing extra LEO cash within the members again workplace as legal responsibility than the precise holding of LEO cash to satisfy this legal responsibility‘.
LEO Coin was launched in August 2015 and wasn’t publicly tradeable till June 2017.
Previous to public buying and selling, LEO operated as Ponzi factors. That’s LEO set its personal LEO Coin inner worth, its associates have been inspired to speculate and returns have been realized by way of an inner alternate.
LEO would honor withdrawal requests by way of the inner alternate, by paying out beforehand invested funds.
What Kamran alleged is that Andersson was knowingly dumping pre-generated LEO Coin, past what LEO was in a position to honor in withdrawal requests.
Kamran claims to have confronted Andersson concerning the scenario in September 2016.
He adopted up on that with an e mail to LEO board members, through which Kamran reported £300,000 GBP value of LEO Coin funding was “unaccounted for”.
For his half Kamran states he was
performing within the public curiosity because the respondent’s shareholders have been liable to being adversely affected by the potential accounting errors and or misappropriation of funds.
Kamran states that he believed that Mr Andersson and one other have been failing to adjust to their statutory obligation, fiduciary duties and obligations, and probably {that a} prison offence had been dedicated.
The lacking £300,000 GBP spanned April to August 2016 and was attributed to LEO Coin funding from Sweden.
Later in September 2016 Kamran knowledgeable the board that £3,000,000 to £4,000,000 GBP was “lacking” from LEO’s turnover since 2012.
Suspecting Andersson has appropriated the lacking £300,000 GBP through a “administrators mortgage account”, Kamran confronted Andersson in January 2017.
Later that month Kamran complained that Andersson had licensed €1.87 million EUR to accumulate “land value €1.1 million euro”. Purportedly a further €600,000 EUR was to be spent to “safe launch of the land” in LEO’s title.
Kamran attributed the overspending and €600,000 EUR sum to “backhanders” and “bribes”, paid by Andersson.
Following extra complaints to different LEO executives, Kamran acquired an e mail from Andersson on January twenty sixth, 2017.
The e-mail knowledgeable Kamran he was being summarily dismissed with instant impact.
Kamran alleges he “had no prior warning” of the dismissal.
The allegations justifying the dismissal had not been investigated by LEO.
Kamran was not taken by way of any process by LEO previous to the dismissal.
LEO did not observe its personal disciplinary coverage. The alleged grounds for dismissal have been gross incompetence and gross misconduct.
Following the dismissal, Andersson purportedly threatened Kamran with civil and prison proceedings.
Kamran maintains his dismissal was a “contrived plan to take away (him) from LEO as a result of (he) made numerous disclosures”, concerning tens of millions in lacking cash.
Owing to judicial workers shortages and delays, Kamran’s case wasn’t heard till February 4th, 2019.
Three days earlier than the scheduled listening to, LEO knowledgeable the courtroom that
- LEO is “bancrupt or at excessive threat of insolvency”;
- LEO couldn’t afford to incur additional liabilities, comparable to being represented within the matter; and
- Dan Andersson was unable to go away Pakistan to testify as per a no fly order
On the proof aspect of issues, a complete of seven ring binders contained 1913 pages of paperwork have been submitted.
Kamran’s proof and witness statements have been signed, LEO’s weren’t.
Subsequently the courtroom didn’t take into account LEO’s submitted proof.
On the listening to none of LEO’s different witnesses attended to testify, regardless of all three being primarily based within the UK.
Kamran made an look to testify, regardless of not being required to take action.
Upon consideration of submitted proof, the Employment Tribunal sided with Kamran.
The choice was primarily based on Kamran’s disclosures concerning lacking LEO investor funds, which the tribunal dominated certified as “protected disclosures”.
Having taken account of Kamran’s proof we’re glad that Kamran made qualifying disclosures.
Kamran disclosed data. The data disclosed by Kamran tends to indicate {that a} prison offence has been dedicated, is being dedicated or is more likely to be dedicated and that an individual has failed, is failing or is more likely to fail to adjust to any authorized obligation to which he’s topic.
Kamran disclosed the data within the cheap perception that it tended to indicate {that a} prison offence has been dedicated, is being dedicated or is more likely to be dedicated and that an individual has failed, is failing or is more likely to fail to adjust to any authorized obligation to which he’s topic.
The Tribunal is glad that he did so within the public curiosity.
Having thought-about the proof earlier than us we aren’t glad that LEO has proved that the rationale for the dismissal of Kamran is conduct.
Kamran’s proof leads us to conclude that there was no
justification for a real perception that (he) was responsible of misconduct.
The tribunal awarded Kamran to a primary award of £1916 GBP. A further £500 GBP was awarded for lack of statutory rights.
Dan Andersson has not been seen in public since his arrest in Pakistan final yr.
Individually, Andersson has sued Kamran in Canada over allegations of “monetary impropriety”.
After LEO Atif Kamran went on to launch My Journey Biz with former LEO govt Geraldine Aquino in late 2017.
My Journey Biz combines a travel-booking engine and pyramid recruitment with TravelCoin.
TravelCoin is just not publicly tradeable and holds no worth exterior of My Journey Biz. It’s primarily what LEO Coin was to LEO within the early days.
The standing of the Pakistan investigation into LEO, together with the lacking tens of millions Dan Andersson is believed to have stolen from LEO buyers, is unknown.