Delaware court papers 'seized by police'

by OUR CIVIL CLAIMS TEAM

A planned $500 million Delaware lawsuit aimed at recovering huge losses allegedly suffered at the hands of UK insolvency experts, lawyers and a number of so-called 'Bad Buggers' may be further delayed after all papers and productions linked to the litigation were apparently seized by North Yorkshire police.

As recently as April 12th Martin Frost, the bankrupt former chairman of companies bearing the name Avocet and Genfro claimed in correspondence he sent to shareholders that Genfro's unnamed "donors" had the process and evidence to commence the US proceedings 'this April'.

Mr Frost, who lives in Scarborough, has claimed repeatedly that at least £150 million has been 'stolen' from the Avocet Group following the collapse of several businesses which are now in the hands of liquidators or administrators. Each firm has a list of creditors said to be owed hundreds of thousands of pounds.

Investors in Avocet Infinite [now called Omega Infinite and in compulsory liquidation] were told the green vehicle fuel the company was working on was worth hundreds of millions of pounds. But no product ever came to the market, and now the patents believed to be held by Genfro are said by critics to be completely worthless.

The proposed class action in the courts of Wilmington, Delaware has been mentioned many times by Mr Frost in a series of 'newsletters', copies of which have been seen by Not Just Sheep & Rugby.

In the April 12th missive, Mr Frost wrote: "Genfro’s donors are seeking to obtain the assignment of your debt claims caused by the [named parties] and so to join in the class actions being brought in the USA by Avocet, and Genfro shareholders in Wilmington, Delaware, USA. 

"In the US the consequences of company wrongdoing by professionals are more expensive and carries punitive damages. Thus, given all the circumstances of theft, legal fraud, failure to renew Avocet patents, bad mouthing by XXXX and the ‘bad buggers’: the total award from a US jury trial is not likely to be less than $500 million to Avocet shareholders with XXXX and XXXX carrying the brunt. Currently, Genfro’s donors have the process and evidence to commence these US proceedings this April."

Two days later Avocet investors were told by Mr Frost: "Genfro has two Delaware subsidiaries which brought in a cluster of Avocet / Genfro North American shareholders. Because Delaware courts are the fastest in the US, one (this year) can expect positive verdicts against the ‘Bad Buggers’. 

"Because of the extensive experience of the Delaware courts, Delaware has a more well-developed body of case law than other states, which serves to give corporations and their counsel greater guidance on matters of corporate governance and transaction liability issues. There is not a question as to whether or not our donors will be successful in our litigation: the question lies as to how much in punitive damages that will be secured."

A newsletter dated April 16th declared: "Along with the postal voting slip will be a litigation assignment agreement. This is a universal document which can be used in UK, EU, and North American courts. Apart from your time there is no cost obligation to you, but if you do decide to join the class actions your entitlement assignment should carry two witnesses to your consent along with the name and address you wish your payments to go to. All payments shall be made by cheque via your national postal system."

According to Mr Frost, joint life president of Genfro, the thrust of the Delaware litigation claims were that Omega Infinite Plc was cash book solvent on 30th March 2020 when liquidators were appointed. He added: "Martin Frost does not have an overdrawn loan account with Omega Infinite Plc, and there is an ongoing plot to denigrate Martin Frost and Avocet."

There was a new twist on April 28th when Dr Bob Jennings, the other life president of Genfro, put out what was called a "Warning of Pre-Action Protocol".

The Jennings document stated: "We are a group of Omega Infinite Plc shareholders who believe that in your performance of your professional duty you have failed us. Your failure is better set out in the six current Lloyd Reports of which you are cognisant. 

"This is a warning that after 14 days you will receive a Pre-Action Protocol which will give you 28 days to enter into settlement discussions. Failing which an action shall be raised in Wilmington in the State of Delaware. Such action, in addition to seeking monetary recompense, will seek US confiscation awards against you. Unless you choose to caveat your position, confiscation awards can become interim in 42 days’ time.

"Please note that while this and similar actions are funded by ‘The Omega Shareholders Association’ whose ultimate parent is Genfro Limited, other non Genfro shareholders have directly assigned their claims to ‘The Omega Shareholders Association’ (a Delaware Corporation). Please, do not ignore this notice."

Then came the bombshell news of the intervention by North Yorkshire Police.

An email from Mr Frost which was circulated on May 4th revealed that on the previous day - prior to him leaving for medical treatment - "North Yorkshire Police seized all my Genfro, Avocet and personal computers and phones".

He also told shareholders: "The police appeared to be interested in recent Genfro and Avocet correspondence, the Lloyd Reports and the UN Avocet dossier plus all papers and productions for the upcoming Delaware litigation.

"I was not interviewed by the police but was instead taken to hospital. I was subsequently released by the police without charge and without any bail or conditions and kindly driven home".

North Yorkshire Police were contacted by us on Friday May 5th for comment. At the time of publication we had not heard back from the force.