I had heard rumors of this for months but now there is confirmation. PMI and Inexto are under investigation for illegal activities in Argentina. They are accused of falsifying information, defrauding shareholders and potentially money laundering. Of greatest relevance to me is that much of this revolves around PMI’s Attempts to get Inexto’s Codentify technology utilized in Argentina.
The story was broken on two different Spanish websites Including TRIBUNA and a small blog which constants elements yet to be verified.
What we do know is that using Codentify, big tobacco tried to collude with corrupted government officials in a way that would mislead PMI shareholders.
The Story is as follows: In order to insure adoption of Inexto, PMI paid off government officials in the Argentinian government, specifically in AFIP and INTI.
If this is how they behave in South American I wonder how we can expect them to be different in the EU.
All of this is based on a letter sent to Jay Clayton a laywer at the SEC from Alejandro Kalbermatten of Argentina.
I am going to delve into this story further and publish a more organized piece next week.