There is a huge conflict of interest when it comes to asking tough questions to at least one of the Principals you have mentioned with the other one being his partner.
Consider a junior pilot having a tough conversation with a senior TRE in a politically charged airline....the airline that lives and breathes the theory of OIC.
Asking the Principals involved will not alleviate the concern. The lessons learned from the past illustrate that the full disclosure of the books and where the funds (the money which BELONGS to the syndicate) are allocated - is the only way to stop what has become a troubling rumour mill when it comes to EPI.
While there is no indication thus far that anything untoward has occurred why not send the investors an audited package of exactly what the situation is.
This is a tough time for everyboby and I suspect that there would be a reasonable understanding from the syndicate should the profitibility of the projects not meet expectations - fair enough, thats the way of investing. BUT when it comes to the exact allocation of specific funds - there should never be anything to hide, EVER.
Ipso facto, a full declaration of funds to the syndicate. Where it has gone, what is left and future plans.
In todays environment there are no excuses....the creation of any will raise increasingly serious concerns.
f.
Last edited by fliion; 1st Jan 2009 at 08:41.