Boris Johnson’s brother loses £14m (GOLD) down a Mongolian mine !!

[Coverte]

As per title; full story behind The Times paywall, but for non subscribers, it's bound to be reported in the free media.........

The pleasures and potential pitfalls of being related to Britain’s prime minister quickly become clear when Maximilian Johnson begins to speak of the predicament he is facing in, of all places, a Mongolian goldmine near the Gobi desert.

Boris Johnson’s younger half-brother is battling to save a multimillion-pound investment gone badly wrong in a landlocked Asian country that for all its remoteness has emerged as a candidate for UK trade deals in the post-Brexit age of Global Britain. But how can he ask for the British government’s help without potentially embarrassing his relative?

“I’m not asking for any favours,” Max Johnson, 36, insisted last week. He faces a “significant” personal loss amid allegations that fraud, embezzlement and money-laundering may have put paid to about £14 million of foreign investment in the Zasag Chandmani gold, copper and iron ore mines. Johnson added: “I note my own relationships and I would never want to invoke those.”

Snip, later continues:

 

It was Murray who invited him to take charge of a “tricky but quite promising” multi-metal mining project in Mongolia in 2018. Murray and Johnson put together a £14 million investment intended to fund the Mongolian-owned mine’s start-up operations.

That was the last they saw of the money. Production failed to begin, no audited accounts were forthcoming, investors started asking for their money back and Johnson, a fluent Russian-speaker, went to the Mongolian fraud squad. “The police were fantastic,” he said.

Full story here, I repeat, paywall, hence C&P's:

https://www.thetimes.co.uk/article/boris-johnsons-brother-loses-14m-down-a-mongolian-mine-pls0qc8vs

[Dan12345]

Shame it wasnt Boris that got lost down a mine 

[dicker]

This does neatly highlight the risk of investing in regions where corporate governance is non-existent and corruption levels are high if not endemic.

Sometimes you get an email, other times it is a gold investment company that has been trading for some and is offering chances to invest, backed by local politicians etc  

The end result however is always the same - lose your money.  
 

Best

Dicker

 

[Coverte]

1 minute ago, dicker said:

This does neatly highlight the risk of investing in regions where corporate governance is non-existent and corruption levels are high if not endemic.

Sometimes you get an email, other times it is a gold investment company that has been trading for some and is offering chances to invest, backed by local politicians etc  

The end result however is always the same - lose your money.  
 

Best

Dicker

 

 

Or in this case, which ever bank lent the money to the investment vehicle.

You can be sure he had none of his own money in this, the rich like him can borrow for close to zero now due to al the money priting and zero interest rates damn near nothing.

[dicker]

The article above says he faces a “significant personal loss”.

Most banks, when you are embarking on ventures like this will want you “on the hook for delivery of the project” and losing enough sleep to make it work!

 

[Coverte]

I suspect he's being a drama queen, big banks etc, especially now, are desperte to lend, so my interpration of "personal loss" more means emotional, as he also says he does not want to "use the family name" - in which case, why give an exclusive interview to the Times!!

It also says as below in the article - my interpetration of "put together £14 million" implies 3 party or parties were sucked into it, plus as below - you maybe right, but I doubt he's put up a PG as I suspect he does not have that sort of liquidity.

“I’m not asking for any favours,” Max Johnson, 36, insisted last week. He faces a “significant” personal loss amid allegations that fraud, embezzlement and money-laundering may have put paid to about £14 million of foreign investment in the Zasag Chandmani gold, copper and iron ore mines. Johnson added: “I note my own relationships and I would never want to invoke those.”

[Arcadian]

It does make you wonder why he didn't invest in a Canadian or US startup mine, perhaps the return was dazzling in Mongolia, 'all that glisters is not gold'.

[dicker]

I think you are right - returns are potentially massive on this type of investment, rather a few percent a year.

[Coverte]

It turns out that Simon Murray, the person who got Johnson involved, is 81; so one asumes he got Mr Johnson to act as his "runner" on the ground over there in Mongolia.

With 90% of Mongolian exports going to China and 90% energy supplied by Russia, it seems a tad optimistic to think 2 Brits could get their hands on any serious gold find/s.

Anyway, he's currently running around Indonesia, looking for more deals, so good luck to him and let's hope his due diligance is better in future I guess.

[Gordy]

2 hours ago, Coverte said:

I suspect he's being a drama queen, big banks etc, especially now, are desperte to lend, so my interpration of "personal loss" more means emotional, as he also says he does not want to "use the family name" - in which case, why give an exclusive interview to the Times!!

It also says as below in the article - my interpetration of "put together £14 million" implies 3 party or parties were sucked into it, plus as below - you maybe right, but I doubt he's put up a PG as I suspect he does not have that sort of liquidity.

“I’m not asking for any favours,” Max Johnson, 36, insisted last week. He faces a “significant” personal loss amid allegations that fraud, embezzlement and money-laundering may have put paid to about £14 million of foreign investment in the Zasag Chandmani gold, copper and iron ore mines. Johnson added: “I note my own relationships and I would never want to invoke those.”

Well looking at your thread title... he didn't lose 14m, it was 14m of foreign investment, not his personal wealth.

[CollectorNo1]

I also heard he gave his bank details to a Nigerian lottery company who emailed to say he had won £50 million 😆

[Coverte]

12 minutes ago, Gordy said:

Well looking at your thread title... he didn't lose 14m, it was 14m of foreign investment, not his personal wealth.

 

The title is C&P from the Times.

[Gordy]

30 minutes ago, CollectorNo1 said:

I also heard he gave his bank details to a Nigerian lottery company who emailed to say he had won £50 million 😆

he needs to share it with me, i got that email too

[SidS]

I got that last week as well! It's like Bruce Almighty, we all won the Nigerian State Lottery, so I guess we all got about 57 cents each. I won't tell of my good fortune, if you don't. There might be crooks about who want to steal our winnings... 🤫

[CollectorNo1]

My lips are sealed 🤫

[Norskgeld]

He should have join the Silver Forum and bought some Sov's...wot a plonker!! 😎

[SilverStorm]

The saying, "If it seems too good to be true, it probably is."   I guess Max Johnson didn't get the memo.  

[Stacktastic]

On 05/09/2021 at 17:29, dicker said:

The end result however is always the same - lose your money.  

Good. £14 million and he is still greedy for more, says a lot about our prim minister and a lot of people in power. 
Hope it teaches him a lesson and he is not bailed out - doubt it. I went to a school that groomed people like this - never fitted in. 

I know next to nothing about mining, but I would never even dream of investing in Mongolia. 
I dont know when he invested, but even buffet know to find a dividend paying major minor to park your cash. 

Edited September 7, 2021 by Stacktastic

[Coverte]

7 hours ago, SilverStorm said:

The saying, "If it seems too good to be true, it probably is."   I guess Max Johnson didn't get the memo.  

 

Nope, nothing learned, he's in Indonesia now; "chasing other opportunities" - whilst the Johnson family seem hard workers, all always writing newpaper comumns, books, paid TV interviews, Rachel on LBC radio, the children from father Stanley, (worth about £4-5 mill) come in 2 types, 1st wife and 2nd wife - Maximillion is from the 2nd breeding round, also went to Eton etc, etc, but does not, to my knowledge, do all the 1st batch do, and simply 'deals/trades'

Deals not very well this occasion, but he still has time to learn and I agree with @Stacktastic - I hope he gets no bail out and learns the hard way, I did the rounds in many of the Eastern Bloc countries and it worked outvery  well, but the learning curve is harsh and unforgiving and can be long in some countries, and in Russia itself, I never stopped learning right upto selling out just prior to the 2008 crash - a lucky escape as 2009/10 almost everything was available on fireside sale prices.

[TommyTwoShots]

Dear Mr Johnson, I lost 50 quid betting on the football please can I have my money back?  Cheers

[HerefordBullyun]

This story reminds me of Maggies boy Mark thatcher geting caught up in the dodgy arms deals in South africa.  

[HerefordBullyun]

59 minutes ago, TommyTwoShots said:

Dear Mr Johnson, I lost 50 quid betting on the football please can I have my money back?  Cheers

thats a great analergy!