"Diamond Funds Recovery" - unclaimed shares query

[kawajez]

hey guys, i signed up hoping to scam some information in regards to this:

Just after a bit of advice on a letter my mum got recently from the above people. Basically we got a letter completely out of the blue from the above company (ABN: 68 553 944 383) stating that she has ~70k of unclaimed shares in her name. The letter goes on saying we can recover the funds for you etc for a 20% fee.

It all seems sort of legit:

-the listed ABN checks out that it has been around since '99
-mum's current and our old address from the 80s is listed
-It isn't surprising that mum would have something like this as she dabbled in shares in the 80s.
-The letter lists both location & PO Box addresses - both check out with ABN.
-Generally seems like a lot of effort has gone into the letter/research etc. Either very professional or legit. Including pre-paid return envelope.

The not so legit stuff:

-The company letterhead has a bag of money on it - tacky.
-Letter contains a suspect sheet of "some of our achievements.." - ie: small spiels from previous "customers".
-Can't find any information on the net about "Diamond Funds Recovery" or the man himself, David Hill.
-Come on.. it's just too weird to actually be real.. isn't it ?

My paranoid nature leads me to believe this guy is dodgy - the whole "money recovery" field feels a bit dodgy too. But that said, it would be a nice little surprise if it worked out..

So my questions to you guys are..
1) Has anyone dealt with this company/man before or a similar setup ?
2) Is it possible to go over his head and recover the shares ourselves - assuming it's for real - without actually knowing which shares they are ?
3) Can you think of any reason why someone would bother to do this ? IE: what good is a signed "Authority to sell shares" form from my mother, if they don't exist ? Which raises the possibility of said shares existing.. and this form doubling as permission to take them over 100%.. ?

Anyway, just thought i'd get some other peoples advice on it before I contacted him himself - knowledge is power etc..

Any thoughts would be welcomed.. cheers

 

[Singh]

Re: "Diamond Funds Recovery" - unclaimed shares query..

It sounds like a scam,since you've checked all the details(ABN etc) we cant be sure whether it's a scam or not, with this huge amount you must be confused if its true?
I tried to find any information on this myself through google and found this link which could be a help.

http://www.delisted.com.au/TraceLos...sLostMoney.aspx

They've contact email address to, if you feel inquiring from these people regarding your letter.

 

[bvbfan]

Re: "Diamond Funds Recovery" - unclaimed shares query..

Have a look at the ASIC website, inparticular the fido.asic.gov.au
I think that has a section on unclaimed funds/super but I've never heard of unclaimed (or lost) shares

As for your mum's information, anyone can get it of various websites on the net for a fee

 

[RichKid]

Re: "Diamond Funds Recovery" - unclaimed shares query..

Have a look at the ASIC website, inparticular the fido.asic.gov.au
I think that has a section on unclaimed funds/super but I've never heard of unclaimed (or lost) shares

As for your mum's information, anyone can get it of various websites on the net for a fee

I think the first port of call should be the ASIC website with a detailed letter to them from your mum about her situation, waiting to get a reply wont hurt. Not sure how good ASIC are but they are the people who would be familiar with such things. Also search asf using keywords like 'scam' to get an idea of some of the things that are out there.

You could also write to the FinReview or a financial mag asking them if they've heard of such a scheme and if they'd like to do a story on it (just to get their interest). Lost shares and recovery for a fee is new to me too, have heard of the super but you can find it yourself as mentioned by bvbfan.

Look forward to hearing how it goes.

 

[kawajez]

Re: "Diamond Funds Recovery" - unclaimed shares query..

hmm well in a bizarre twist, it all seems to be true. The guy called mum today to chat about it and apparently seemed very nice/professional.. he even told her the name of the shares. So mum went and dug out about 10 shares receipts from the 80s, one of them being this one for about 2200 shares - about a 3000% profit over 20 years. Nice one i say niiiiice..

Thanks for the advice.

 

[RichKid]

Re: "Diamond Funds Recovery" - unclaimed shares query..

hmm well in a bizarre twist, it all seems to be true. The guy called mum today to chat about it and apparently seemed very nice/professional.. he even told her the name of the shares. So mum went and dug out about 10 shares receipts from the 80s, one of them being this one for about 2200 shares - about a 3000% profit over 20 years. Nice one i say niiiiice..

Thanks for the advice.

Would you mind sharing the name of the company your mum held shares in? Not sure if you should relax yet, if you're entitled to the shares without any obligation to pay the DFRco then you might as well I guess. Just my opinion.

 

[kawajez]

Re: "Diamond Funds Recovery" - unclaimed shares query..

yeah it's WOODSIDE PETROLEUM LIMITED (WPL) - am wondering if it would be a good idea to hold onto them for a bit longer..

 

[RichKid]

Re: "Diamond Funds Recovery" - unclaimed shares query..

yeah it's WOODSIDE PETROLEUM LIMITED (WPL) - am wondering if it would be a good idea to hold onto them for a bit longer..

WPL sounds like a great stock, do a search here on asf for views on WPL (use the search tool at the top of the page). I like it personally for oil and gas exposure (I do not hold atm), especially in this resources boom, good div payer too. Not sure what the best decision for your mum is, better to see a qualified financial adviser to get a grip on overall finances rather than just on WPL.

This is the Woodside thread but there are others too which discuss it: https://www.aussiestockforums.com/forums/showthread.php?t=951&highlight=wpl

Do some research and post your views there and others may join in.

Good luck with it!

 

[RichKid]

Re: "Diamond Funds Recovery" - unclaimed shares query..

If all 70k are in WPL (if it's much less than 70k that her WPL share certificates show then you'll need to keep searching for the other co's- assuming there are others co's) then that's about $28.50 x 70,000 which is just under $2 Million.

With that much money at stake I'd probably see a tax lawyer and an estate planner or accountant.

The other issue is contacting Woodside to ask where the past dividends have been held and what there records show in relation to your mum's holding, some companies hold the div money in trust but don't pay any interest so the dividends may have been eroded by inflation. I assume your mum hasn't been receiving divs. A lot of work for you and your mum now, many cgt and super issues too I presume, there's also the matter of incorporating the assets into an updated will.....and more....this is not advice, just possibilities which may need to be considered.

 

[kawajez]

Re: "Diamond Funds Recovery" - unclaimed shares query..

Just to clarify, mum bought 1200 shares @ ~$0.97 each in '86. This has been bumped up to 2200 from dividends since then, so the 70k figure is a rough $ amount - not share amount.

Yeah at this stage we're not too sure what to do - Will research a bit further though as it's a pretty tidy little bonus..

If we are to sell the shares outright, what can be done to minimise tax dramas ? It would be a shame to loose half of it to tax..

 

[bvbfan]

Re: "Diamond Funds Recovery" - unclaimed shares query..

You could roll them into installment warrants over WPL, which would defer tax I believe