The Life Foundation Trust pledged a rare stamp collection that, as of the last appraisal, had a catalog value of almost $50 million and a wholesale value of $20 million...
...Hitsgalore.com has identified an expert appraiser and collector to assist with liquidation scheduling. As soon as the Company's auditing firm gives final approval of the appraising firm, that firm will be retained permanently to begin liquidation after the grace period ends.
Here is relevant part of the 10K about the appraisal:
The Asset is insured as to all risks of physical loss and/or damage for $20 million through Lambert Fenchurch Specialties Group Limited, London, with a certain underwriter at Lloyd's, London, UK, per Contract No: NA0100098, Certificate No: NA0112598. The premium for the 12 months ending December 3, 1999 of $70,000 has been paid in full. The Asset has been appraised for $50 million (catalog value).
Apparently since HITT has just now identified an appraiser for the stamps, the original appraisal was most likely done at the behest of LFT... and HITT apparently didn't hire a firm of their own to verify their value. I note that HITT is very specific as to who insured the stamps and who is storing them, but never even mentions the name of the appraiser (I'm assuming the appraiser was independent of Lloyds). Under the circumstances, I would have expected HITT to say they have contracted with the firm who originally did the appraisal. I mean, one would think they would have had prior approval from (one of) their auditors on that firm or else the auditors couldn't very well have verified the value of the stamps. Unless, of course, everyone involved just accepted the appraisal at face value. But what if the appraiser was really... oh, never mind ;^).
- Jeff |
