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Wellington Capital PIF/Octaviar (MFS) PIF

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Re: Octaviar MFS Premium Income Fund PIF

I will email Carneys if no one knows the answer to my question... Would it be likely that, say KPMG be tried first...and then have to settle? ..so that we can get some $$$ in our kicks before all the directors go into "mock" bankrupsy.

Are all the respondents tried separately...and each given a sum to settle immediately?

I know little about such things, and I daresay many others are the same.

I wonder if Michael King still plays polo on his polo farm!...owned now by who?...probably his wife or daughter.
 
Re: Octaviar MFS Premium Income Fund PIF

Another Directions hearing is listed for the Federal Court on December 2nd. I haven't read anything about yesterday's hearing...any news on that front?
 
Re: Octaviar MFS Premium Income Fund PIF

ORDER

JUDGE:
Justice Perram
DATE OF ORDER:
9 October 2009
WHERE MADE:
Sydney


THE COURT ORDERS THAT:

1. Leave be granted to the applicants to file and serve a notice of motion within 28 days, to be made returnable on a date to be fixed following consultation with his Honour’s associate, to make an application seeking:
(a) approval pursuant to section 33V(1) of the Federal Court of Australia Act 1976 to discontinue the proceeding on condition that the eighth applicant forthwith file and serve an application and statement of claim substantially in the form of the draft Further Amended Application and draft Amended Statement of Claim served on the respondents on 2 October 2009;
(b) approval of the form and content of the notice concerning the matters referred to in sub-paragraph (a) above, to be sent to Group Members in the proceeding pursuant to an order to be made under s 33X(5) of the Federal Court of Australia Act 1976; and
(c) directions concerning the method of service of the notice referred to in sub-paragraph (b) above on the Group Members in the proceeding.
2. The matter be stood over for further directions on Wednesday 2 December 2009.
3. Liberty to apply on 3 days’ notice.

This seems to be a procedural matter where the original group that initiated the class action is replaced by the Group Members (ie all those who registered with IMF). We will be receiving a notice to this effect.
 
Re: Octaviar MFS Premium Income Fund PIF

Can Michael King still be a director of AGILIS GLOBAL (Dubai) if he has now declared himself BANKRUPT? Not sure if the following article has been posted on the forum previously, Seamisty:::The chase for MFS identity Phil Adams beginsArticle from: September 24, 2009 11:00pm

ONCE upon a time there was a Gold Coast company called MFS, which became so big and so successful (seemingly) that it had former pollie Andrew Peacock as a chairman.

Then things went pear-shaped. Lots of people lost a lot of money.

Fingers of blame were pointed at founders Michael King and Phil Adams. But since Adams was over in Dubai, King, who once played polo with likes of the Packers, took the brunt of it.

Each still owes more then $60 million on loans they took out to buy MFS shares, now worthless.

Early in the year, burned ex-shareholders who'd lost more than $1 billion were infuriated to learn Adams was on the speaker circuit in Dubai and that the website of his Agilis business was touting him as a business genius, with no mention of the disaster back in Oz.

Still, it seems those chasing up Adams for cash have had some trouble getting in touch.

Here's where Confidential can help.

A source close to the family has told us that Phil, who, like jailed ex-pollie Gordon Nuttall, started out as a bank teller (in Ipswich), will be back late next month to prepare for his second wedding.

He informed first wife Liz, to whom he was married for 30-odd years, of these developments by text message.

The ceremony will take place near Warwick in December, we're told. It's understood elusive Phil has been crying poor somewhat during his brief Oz sojourns.

But when he stayed on the Coast in May while attending his daughter's wedding, he was booked into the Hyatt at Sanctuary Cove for 10 days.

Not exactly slumming it.
 
Re: Octaviar MFS Premium Income Fund PIF

King: I'm not bankrupt
Nick Nichols, business editor | October 12th, 2009

MFS founder Michael King has vowed to 'vigorously' defend a $650 million class action brought against him and his former company's auditors by Premium Income Fund investors.

The Gold Coast businessman, through his lawyer, also emphatically denied yesterday that he had been declared bankrupt.

The Gold Coast Bulletin yesterday reported Arthur Carney, of Sydney firm Carneys Lawyers, was not expecting a defence from Mr King against the class action as Mr King had been declared bankrupt.

"They (Carneys) have alleged to your reporter our client is bankrupt (when he is not)," wrote Mr King's lawyer, Mark Lacy, in a letter to The Bulletin yesterday.

Mr Lacy's statement was backed by Nick Mellos, trustee for a July agreement reached by Mr King with margin lenders to which Mr King and MFS co-founder Phil Adams owed about $127 million.

Mr King has agreed to repay an undisclosed part of the debt, thwarting bankruptcy proceedings.

"He is definitely not bankrupt," said Mr Mellos, a partner with Grant Thornton. He said the agreement was 'on track' and Mr King had 'some work to do' in order to make good on his commitments to creditors.

Meanwhile, in a broad response to yesterday's Bulletin report, Mr Lacy, of Hickey Lawyers, said allegations that Mr King was not planning to respond to the class action were incorrect.

"(Mr King) has never conveyed such fact to them (Carneys Lawyers) and, to the contrary, has conveyed any such action will be defended vigorously," wrote Mr Lacy.

"In circumstances where such basic facts are misstated, one must question the assertions made in connection with the class action itself.

"(Mr King) continues to deeply regret the financial loss many have suffered through the collapse of MFS ... and sincerely apologises for his inability to undo the events of early January 2008 once he had to resign as a director and CEO of MFS.

"In due course, he expects that the true causes of the failure of MFS will emerge, and the true people and organisations behind such failure will be identified, as will the wrongful conduct of those organisations and people."

Mr Lacy said Mr King welcomed the appointment of liquidators to MFS, which is now known as Octaviar.

"He has already indicated to such liquidators his full co-operation with such process and he looks forward to such investigation," wrote Mr Lacy.

"He personally intends to spend significant time in the next few years pursuing a range of people and organisations for their wrongful conduct in the demise of MFS and the losses caused to so many.

"Our client invites further investigations into the affairs of MFS as he believes, in due course, such investigations will show the true cause of (and people and organisations behind) the demise of MFS."

Mr Lacy said 'each and every independent investigation conducted to date has not identified one thing alleged to be wrongfully done by our client'.

"Our client expects in due course further investigations will continue to clear him of any wrongdoing concerning MFS."

Mr King also was prepared to spend the next few years defending the 'unblemished reputation and integrity' of former MFS staff who had been subjected to 'wrongful reporting concerning events at MFS prior to January 2008'.

These reports had left him 'deeply saddened' for staff he described as 'talented, loyal and dedicated'.

Hmmmm...............
Blueboy1
 
Re: Octaviar MFS Premium Income Fund PIF

MFS executive nets nearly $1m
SCOTT ROCHFORT
October 12, 2009
The company secretary of the collapsed Octaviar (formerly named MFS) collected close to $1 million in consultancy fees for helping the administrator and liquidator Deloitte sift through the wreckage of the collapsed Gold Coast finance group.

Accounts filed to the corporate regulator by Deloitte show a company founded by former Octaviar finance director David Anderson was paid more than $940,000 in ''professional fees'' from early October last year to September this year.

Mr Anderson is the most senior former Octaviar executive kept on by the administrators and now liquidators of the financial group, which has more than $1.7 billion in debts.

He said several people were paid from his business, of which he is the sole director.

But Mr Anderson declined to say how many people were paid from his company. ''That's wrong. I am telling you it was a number [of staff] and I told you that I don't wish to talk to you any more,'' he said.

He referred BusinessDay to recently appointed liquidators Bentleys Corporate Recovery.

Accounts filed to the Australian Securities & Investments Commission also show further wages were paid to staff working for Octaviar after it went into administration in late 2008.

The last set of accounts provided by Deloitte show around $40,000 a week in wages continued to be paid out of the carcass of Octaviar.

This was on top of what went to Mr Anderson's firm, Deloitte and in legal fees.

About five Octaviar staff, including Mr Anderson, continue to work with Bentleys. It is believed one staff member who stayed on is Craig Chapman.

Mr Chapman was installed as chief executive of Octaviar last year, after his business associate, the Singapore-based business identity Chris Scott, led a spill of the company's board.

A Bentleys spokesman said Mr Anderson was on an existing contract inherited from Deloitte.

The fees Mr Anderson's company has charged over the past year are almost double his base wage in the financial year before Octaviar imploded.

In the 2007 fiscal year, Mr Anderson was paid a $532,133 base salary and a $287,844 cash bonus. He also collected about $1.9 million in now worthless Octaviar scrip.

Deloitte partner John Greig, who filed the accounts, declined to comment.

''These are questions that are better off with the incumbent liquidator,'' he said, referring the matter to Bentleys, which replaced Deloitte as liquidator last month.

The Supreme Court ordered Deloitte be replaced by Bentleys last month after one of Octaviar's creditors, the Public Trustee of Queensland which represents noteholders who are owed $359 million, objected to Deloitte paying $20 million to another creditor, Fortress.

In a sign set to further infuriate investors and unsecured creditors who lost billions in the company and its various listed and unlisted funds, tens of thousands more was paid in consultancy fees on top of the hundreds of thousands of dollars paid in administration fees to Deloitte.

The accounts filed by Deloitte also show a firm called AFS Strategic Consulting was paid about $4300 a week for ''professional services''.

The owner of the business, Joanne Hill, is the company secretary of the hedge fund HFA Holdings, which once had Octaviar as a cornerstone investor. Ms Hill did not return phone calls.

More for the pot!
Blueboy1
 
Re: Octaviar MFS Premium Income Fund PIF

How do you solve a puzzle like OctaviarCBD
October 12, 2009



By Scott Rochfort

The company secretary of Octaviar (aka MFS Limited), David Anderson, must have had some sympathy for administrators of the Gold Coast financial group when they came on board last year.

Just two months before Deloitte was appointed the voluntary administrator of Octaviar in September '08, Anderson set up a firm called Business Puzzle Solutions Pty Ltd.

Maybe the former chief financial officer and right-hand man of MFS founder Michael King realised the tough job any corporate undertaker faced in untangling the complex maze of relationships the company had with its former satellites and other related parties.

In helping Deloitte work out the puzzle, Anderson stayed on board and allowed Business Puzzle Solutions to provide services, collecting about $1 million in fees along the way.

In a tell-all interview with CBD, Anderson said: ''You should speak to the administrators. I think you are making the assumption that I am the only person whose services are paid for through that [entity].''

Anderson declined to say how many people were paid through Business Puzzle Solutions, for which he is the only director and shareholder.

CBD: How many people are paid by Business Puzzle Solutions?

Anderson: Anything do with this and the payments of the administrators, you should … speak to the administrators.

''Speak to them,'' the former KPMG partner confided to CBD. In MFS's final annual report Anderson, who joined the firm in 2002, is referred to as ''responsible for treasury and financial structuring roles throughout MFS, oversees the financial reporting and taxation functions and assists in investment banking projects''
Source;;;http://www.smh.com.au/business/how-do-you-solve-a-puzzle-like-octaviar-20091011-gscz.html
 
Re: Octaviar MFS Premium Income Fund PIF

This article is worth re-reading in the light of recent news..

hmmmmm...

http://www.crikey.com.au/2008/02/04/kpmg-the-common-link-in-allco-and-mfs-fiascos/

KPMG: the common link in Allco and MFS fiascos
Adam Schwab writes:
Of all the similarities between struggling financial companies Allco and MFS, one obvious link has so far escaped media attention: the role of auditor KPMG in the twin fiascos.

While MFS remains suspended (it lasted traded at 99 cents compared with a high of around $6.70 in June) and Allco continues to struggle (closing at $3.30 compared with a high of approximately $13.00 in March) the common ground between the two companies is that they were both audited by (and more importantly, paid significant non-audit fees to) KPMG.

Both of MFS’s company secretaries were previously employed by KPMG; David Anderson, chief financial officer of MFS, was previously a partner at KPMG in the finance area while Kim Kercher, MFS’s chief “governance” officer was previously a manager at KPMG.

The auditor signing off on MFS reports (which in light of recent announcements, don’t seem to be entirely accurate) was Mitch Craig (who is KPMG’s National Partner in Charge of Risk Advisory Services). According to MFS’s 2007 Annual Report, KPMG were paid $483,600 for audit services. However, the audit fees pale in comparison to the non-audit related services performed by KPMG. The firm was paid $771,098 for assurance, taxation and diligence services in 2007. KPMG also provided $665,600 in non-audit services to MFS satellite, MFS Diversified (KMPG also audited MFS Diversified until last year).

In the Sarbanes-Oxley era, this is a farcical situation, with KPMG collecting almost double as much from MFS for non-audit related services as they did for conducting the audit. As noted by The Guardian back in 2002:

Regardless of the individual integrity of those involved, this situation [of auditors performing non-audit related services] raises a serious conflict of interest.

Where an auditor is providing other services to a company it is auditing, it can hardly be said to be independent and it is less likely to be critical or do anything that might embarrass management.

Companies may hire or fire an auditor. Consequently, with future career prospects and income hanging in the balance, there is little incentive for an auditor to publicly expose improper behaviour or “creative” bookkeeping being used by the company they are auditing.

KPMG signed off on MFS’s financials on 20 August 2007. MFS shareholders paid KPMG handsomely to ensure that the financial information provided was true and fair. Based on recent announcements, and the sudden departure of executive Michael King, it seems that MFS shareholders didn’t get great value for money.

Across at David Coe’s Allco things seem similar. Allco’s auditor was also KPMG. During 2007, Allco paid KPMG a significant $3.1 million for audit fees (signing off on the report was Chris Whittingham). On top of that, Allco also handed KPMG a very tasty $2.96 million for other services, including financial due diligence and taxation services. Allco’s Annual Report noted that:

It is the Consolidated Entity’s policy to employ KMPG on assignments additional to its statutory duties where KPMG’s expertise and experience with the Consolidated Entity provides an efficient solution to [Allco’s] professional service needs.

This situation was meant to have stopped after Arthur Andersen’s infamous association with Enron. In 2001, Anderson was paid US$25 million for audit services and US$27 million for non-audit services. Many believe that Andersen’s willingness to turn a blind eye to the frauds occurring at Enron was partially caused by its willingness to retain non-audit revenue. Many Enron executives had previously worked at Arthur Andersen. Similarly, several key MFS executives were employed by KPMG.

Interestingly, the ratio of audit services to non-audit services paid by MFS to KPMG was even worse than Enron’s although its fate may very well be similar.
 
Re: Octaviar MFS Premium Income Fund PIF

I am sure OPI Pacific Finance investors will not be impressed to see M King has retained the services of Mark Lacy for legal representation!!!
Mark Lacy, is Michael Kings lawyer. He is a partner at Hickeys Lawyers who handled most of MFS property work. Mark Lacy was also the chairman of MFS New Zealand and an independant director of OPI Pacific Finance which has since been placed in receivership. The company lost 75% of its funds while David Anderson, Mark Lacy and Jason Maywald were directors. At the time of its demise, OPI Pacific's collapsed owing creditors $456.6m including $313.4m of debenture and noteholders.

That is the same David Anderson who was paid more than $940,000 in ''professional fees'' from early October last year to September this year in consultancy fees for helping the administrator and liquidator Deloitte sift through the wreckage of the collapsed Gold Coast finance group. David is a former partner of KPMG Australia, holds a Bachelor of Commerce and is a Member of the Insolvency Practitioners Association of Australia, The Institute of Credit Management and is a Certified Fraud Examiner.



Jason Maywald is a former solicitor and holds a Bachelor of Laws degree
He was Chief Executive Officer and Executive Director of MFS New Zealand

In Feb 2008 Jason Maywald was quoted 'the company had been open and transparent about related party exposures in the past'.
"We are comfortable. It is not a concern to us," he said.
AH, MC'KING, youv'e done it again!!!!!!!! Seamisty
 
Re: Octaviar MFS Premium Income Fund PIF

Blueboy1 said:
King: I'm not bankrupt
Nick Nichols, business editor | October 12th, 2009

...

Mr Lacy's statement was backed by Nick Mellos, trustee for a July agreement reached by Mr King with margin lenders to which Mr King and MFS co-founder Phil Adams owed about $127 million.

...

"He is definitely not bankrupt," said Mr Mellos, a partner with Grant Thornton. He said the agreement was 'on track' and Mr King had 'some work to do' in order to make good on his commitments to creditors.
Click to expand...

Is that the same Grant Thornton that is administrator for the Sheraton Mirage?


... "(Mr King) continues to deeply regret the financial loss many have suffered through the collapse of MFS ... and sincerely apologises for his inability to undo the events of early January 2008 once he had to resign as a director and CEO of MFS.

"In due course, he expects that the true causes of the failure of MFS will emerge, and the true people and organisations behind such failure will be identified, as will the wrongful conduct of those organisations and people."

...

"Our client invites further investigations into the affairs of MFS as he believes, in due course, such investigations will show the true cause of (and people and organisations behind) the demise of MFS."

Mr Lacy said 'each and every independent investigation conducted to date has not identified one thing alleged to be wrongfully done by our client'.

"Our client expects in due course further investigations will continue to clear him of any wrongdoing concerning MFS." ...
Click to expand...

Yeah, Maybe for MFS LTD but what about the PIF?

... Mr King also was prepared to spend the next few years defending the 'unblemished reputation and integrity' of former MFS staff who had been subjected to 'wrongful reporting concerning events at MFS prior to January 2008'.

These reports had left him 'deeply saddened' for staff he described as 'talented, loyal and dedicated'.
Click to expand...

Yes hmmm. I'd expect I'd be marketing my support for former staff too if I was in King's shoes. Imagine the damage they could do if they felt abandoned/betrayed/let down?
 
Re: Octaviar MFS Premium Income Fund PIF

An update on progress with the sale of the PIF Port Macquarie project:

Two-year saga ends with for sale sign
12/10/2009 4:00:00 AM
Port Macquarie News http://www.portnews.com.au/news/local/news/general/twoyear-saga-ends-with-for-sale-sign/1646126.aspx

ONE Port Macquarie development has overcome its initial hurdles and is ready to make a comeback.

Icon Apartments will soon release 24 luxury three-bedroom apartments to the market.

Hastings investors may remember the property from its original name, Aston Hills Apartments.

The original construction was started by companies associated with property developer David Bloomfield.

Administrators were appointed to three company’s Mr Bloomfield was a director of in April 2007.

Finvest, Shores Australia and Scorpion Securities were placed in the hands of Worrells Solvency and Forensic Accountants.

Sources at the time said individuals were owed $5 million for investments in three apartment projects in Port Macquarie, including Aston Hills.

The construction of the property will be completed by Wellington Capital Limited and Brisbane-based Geocal Constructions.

Wellington Capital is a merchant bank who has owned the site for more than 12 months.

It is the bank’s first foray in the local real estate market.

Wellington’s general manager, funds management, Anthony Stanton believed Port Macquarie’s real estate market would remain strong.

“Port Macquarie has a lot of potential and we believe it has a strong future.”

He said local contractors had been paid over $1 million by the new owners for work done before construction stopped in 2007.

Mr Stanton said the sale of the units would allow local investors a chance to recoup funds tied up since administrators were appointed.

The property will be marketed jointly by Port Macquarie real estate agents Mark Carter and Greg Laws.

The agents said the “house-sized” apartments, which would start at $650,000, were coming on to the market at just the right time.

Mr Laws said there has been more activity recently in this segment of the market.

“There have been commitments given on seven of the apartments already.” he said.

The sale of the apartments will be launched on Friday from 2.30pm at Mort St.
 
Re: Octaviar MFS Premium Income Fund PIF

marcom said:
The Federal Court Judge on our class action case Justice Nye Perram has demonstrated his worth in a recent case reported at

http://www.smh.com.au/business/judge-rebukes-apra-over-insurer-probe-20091012-gu2m.htm

Worth a read.
Click to expand...

Marcom
Went I hit the site you mentioned I get the following message.


We could not find the page you requested. This is either because:

there's an error in the address or link,
due to a technical fault it has not been properly published,
it is an older article that has been removed from our site.
 
Re: Octaviar MFS Premium Income Fund PIF

The Owls - I had the same link problem. The item can be found by Googling "Justice Perram" in the News section of that search engine.
 
Re: Octaviar MFS Premium Income Fund PIF

How can I get a value of PIF units ? I need this for centrelink as they still value them at $1 help needed
Waleroo
 

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