A last ditch effort from a couple of really desperate guys. Not even worth mentioning, but here just for entertainment purposes..

Some short sellers (we will get to whom they are in a minute) accuse InterOil of… the terrible, unforgivable deadly crime of not filling out a form correctly. At least that’s what they allege.

Here is the story, part I, part II.

A little over a year ago, Merrill Lynch, already in trouble, didn’t want to extent a cheap loan. This put InterOil in a bit of trouble, as they urgently needed finance to pay that ML loan off. In a remarkably short time, InterOil managed to do that, via a debenture issue ($95M) to private investment. That saved InterOil a lot of trouble, otherwise they might have been in default over that ML loan.

What is now alleged? In essence, two things:

• InterOil did not disclose the names of the investors that assisted in the placement
• A couple of these (Dolan and Carey International) might not have been investors (InterOil did disclose that the finders fee went to ‘investors’ in the company), but hired to raise the money, and these are now suing one another.

Keep in mind that this is a worst case. Nothing has been proven.

An interesting question is also if indeed Dolan nd Carey International did play some role in finding investors, who actually hired them? Was it InterOil, or were they subcontractors and not directly hired by InterOil? In the latter case, can InterOil be held responsible?

And who are those desperate shorts pulling this last ditch desperate effort out of the hat? Well, let’s look at that guy who posted these messages on the message board. Interesting, four messages, two at the USANA Health board, one at Herba life, and this one at InterOil. Hmm, were have we seen those names before?

Well, here. (Also here and here). Basically, the usual suspects.

Another poster pumping this story is using the name milberg_weiss-esq. That’s also funny, as it’s not exactly a securities litigation firm with the finest reputation…  We also have a feeling we’ve heard more of this firm in relation with some of those shorters in InterOil, stay tuned.

And of course, just as the last time, this is made public just before options expiration. Coincidence? Once perhaps, but twice?