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disappointed?? not as much as the 1600 poor investors who have been shafted!

yep - it was good of them to be dissappointed..... it is surreal - it is like it is someone else's fault..... not "I am sorry for causing this mess and not fessing up".....

that's one of the problems - simply not taking responsibility for their actions and continuing on with impunity....

ASICK said:
"... Again let me record our disappointment that distributions have been suspended and that there is now a capital loss on your investment in EIF. ..."
http://equititrust.com.au/Pdfs/EIF_Update_08Jun11.pdf

What! not even a "sorry"?
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Re: disappointed?? not as much as the 1600 poor investors who have been shafted!

kostag said:
yep - it was good of them to be dissappointed..... it is surreal - it is like it is someone else's fault..... not "I am sorry for causing this mess and not fessing up".....

that's one of the problems - simply not taking responsibility for their actions and continuing on with impunity....
Click to expand...

That's what I was thinking .. externalization of blame .. oh! that darn market .. the floods .. bad luck ... GFC .. anything but the fault of the directors of Equititrust Limited.
 
and now the public purging of the 'guilt'....

Mark and Matt (as seen on youtube) - the TRUST MUTUAL 'not for profit' - out there helping communities for nothing..... see, they are all really great guys.....

now, dont we all feel better?

Frued would have a field day .....its a shame that Ian Maurice couldn't hand the microphone over to Sigmund.

ASICK said:
That's what I was thinking .. externalization of blame .. oh! that darn market .. the floods .. bad luck ... GFC .. anything but the fault of the directors of Equititrust Limited.
Click to expand...
 
Sorry = Admission of Liability

Remember who you are dealing with here, lawyers... So saying sorry to them equates to "admitting liability"...

Expect more of this as the momentum for legal action against Equititrust and the directors starts to build... ASIC is cutting every escape route as reported by Colin Kruger in the Sydney Morning Herald…


http://www.smh.com.au/business/sydney-airport-gets-new-wingwoman-20110609-1fuzx.html
 
False Promises

This is what Equititrust posted on this thread on :

16 February 2011 Post Number 153


"Would we like to state that investors investment is 100% safe? Yes we would but ASIC guidelines restrict us from making such statements."

I hope the lawyers preparing the class action scroll through this thread and closely examine some of the "highly misleading statements" made by Equititrust...
 
Investors lose in encounter with King Con

Investors lose in encounter with King Con

Colin Kruger
Sydney Morning Herald
June 13, 2011

This would have to be by far the most damming article yet on Equititrust and more importantly its founder Mark McIvor.. Colin Kruger does not hold back any punches in this comprehensive review of what actually happened with King Con and how tens of millions of dollars of investors’ money was squandered without the investors knowing.


http://www.smh.com.au/business/investors-lose-in-encounter-with-king-con-20110612-1fz9d.html

Quote
"The judgment reports how McIvor effectively provided a reference for the developer, speaking ''of Mr Quinlivan's personal qualities and experience and the pivotal role he plays in the company''.

He told the tribunal Quinlivan's role in the group was an important ingredient in any success it has had or will enjoy and his disqualification would make the group less attractive as a financing proposition.

He said ''the evidence he had heard about Mr Quinlivan 's chequered business history did not change his mind about the desirability of retaining Mr Quinlivan in a management role at the Quinlivan group''.



"In January this year, when Quinlivan's appeal to the Full Federal Court of Australia on the ban failed, ASIC said it ''expressed concern that Mr Quinlivan continued to be involved in large-scale commercial property developments''.

Equititrust did not appear to have any such concerns.
One month later the company was explaining it would be unaffected by the collapse of Quinlivan's latest property venture, Croftworth Property, as the EIF held first mortgage over the properties.

This claim would last until the April when the meeting of EIF investors were told a massive writedown on these loans to Quinlivan would single-handedly ensure they would lose money on their collective $200 million investment." End Quote


This is now becoming a "National Scandal" and yet further evidence why management of the fund should be taken out of Equititrust and McIvor's hands. How on earth can ASIC allow McIvor to now try and raise funds via Landsolve and or Trust Mutual in light of these revelations and whilst Equititrust is on the verge of collapse...

If this level of incompetence and misinformation about the state of the fund is now in the public domain as a result of Colin Kruger’s Article today then there is an urgent need for someone competent to step in and safeguard investors interests as it is clearly evident that Equititrust is totally out of control when it can make statements up until April that there will be no losses on the loans to King Con and then announce in April that losses may amount to tens of millions of dollars.. This was hidden from investors as well as the public in an attempt to raise a further 50M from the unsuspecting public. Urgent action needs to be taken now to protect investors from an organisation which is clearly in disarray...
 
Investor Fury

Investors have every right to be “screaming mad” at the revelations in Colin Kruger’s article in the Sydney Morning Herald this morning.. The chronology of events demonstrates that Equititrust clearly had something to hide in its dealings with "King Con". Investors spoken to this morning are absolutely disgusted at this farce, particularly the delusional attempts to raise further funds whilst the current disaster goes from bad to worse..

It is no wonder that Piper Alderman on their website have stated they are now investigating contraventions of the Corporations Act.. It seems there is more to the "King Con Scandal" than meets the eye..

In combination with the Media, Legal Action, Pressure on ASIC and Referral of this Matter to your Local Member to Press for an Inquiry Equititrust can rest assured that investors will keep digging until they get to the bottom of this murky mess.
SHAME EQUITITRUST SHAME​
 
CROFTSWORTH ANGLE - there is a whole side to this we are missing

there is an aspect to this that we are all missing - we are told that $66M is/was owed and the valuation etc was $88M etc.... so on teh face of it, we assume that the $66M represents something akin to project costs.....

BUT the reality is this......

1. Corymbia Woods - the Ipswich security - was and remains a vacant block of land. So what was paid for it by Croftsworths and once we know that - where did the $66M advanced in cash by EquitiDUST go? Who got it? and if Equititrust has proper secuirty documents which would include a charge over the BORROWER entity, then wherever those moneys (our money) went, they can be tracked down. Those moneys are still part of our secuirty.

2. The excellent Colin Kruger SMH article shows that up until March 2011, there was still a close relationship between McIvor and Quinlivan. Why? What moneys flowed back and forth, if any? What EQUITITRUST projects did Quinlivan run or have a hand in? What moneys were paid to Quinlivan by Equititrust on other projects as well? What moneys did Quinlivan disburse and to whom? Did Quinlivan simply serve as a convienient 'middle man' receiving and disbursing moneys?

There is atleast a $46M black hole here. It is not just a valuation 'drop' - this is real cash - our cash $66M loaned out in cash and only a small part of it spent on the actual property secuirty. Now, any prudent lender would ensure that moneys disbursed were to the benefit of the asset/project and clearly Equititrust failed big time here. However, leaving that to one side - where did the money go? and who got it?

That must be attacked.

I suspect that Dudley Quinlivan may even be happy to talk about this whole set-up etc to get it off his back...... and his revelations could be most illuminating.

Piper Alderman and Colin Kruger - stay on it!

GH
 
Forensic Investigation

This morning's damming Article by Colin Kruger of the Sydney Morning Herald into Equititrust's dealings with King Con resulting in tens of millions of dollars’ of losses to retiree investors warrants an independent inquiry. Investors spoken to are now contacting their State and Federal Members to push for an inquiry and to bring this sordid matter before Parliament, just as King Con was named in Queensland State Parliament. I encourage all investors to also contact Treasurer Wayne Swan's Office to push for further action. He is a Queenslander and this disaster is happening under his nose..

Wayne Swan Contact Details:

Email: ministerial@treasury.gov.au

Electorate Office

Location:

1162 Sandgate Rd
Nundah QLD 4012

Tel: (07) 3266 8244

Postal Address:

PO Box 182
Nundah Qld 4012


Further there needs to be a proper forensic analysis as to where every single cent went in relation to the "King Con" loans. This can only be done by an independent party far removed from Equititrust or its directors..
 
Just another great example of how interest is accrued and then capitalized and of how the fund and its paper profits grew as a hollow facade, only to crash a year or two into the future.

By your manager's own admission, the fund had about $30m in impairments paid from another 'pocket' without the knowledge of the owners of the fund advancing the loans - it's just extraordinary that ASIC pays not attention to such a goings-on.

You guys were just sitting ducks - just like the members of the badly damaged funds which preceded you.
 
Sitting Duck

Well said ASICK, however after this morning’s Sydney Morning Herald Revelations it seems that McIvor is now in the crosshairs. In terms of responsibility and "absolute investor fury" , he may now be the sitting duck...
 
CLASS ACTION OUGHT FOCUS IN LIQUIDATOR OF QUINLIVAN

I say that the EIF will be atleast $100M short - 40% write down and that has been my calculation since February 2011.

Of this - some 50% or $50M of losses is probably tied up in one man - King Con! McIvor's 'bestie' (if Court transcripts are correct).

Now, as I stated the other day, when a Borrower over-borrows against an asset and does not use the moneys borrowed on the purchase or development of the project - they go somewhere. (Leaving aside whether the Lender has been materially negligent to allow this to occur is anoteher issue for another day) Unlike an illusory valuation, theyse funds dont just disappear. They might be tied up in family homes, boats, luxury assets, intercompany loans, preferential repayments of loan accounts to family members...... a whole raft of areas that can be both traced and attacked.

Piper Alderman should be adding this tracing to their ocourt sought rders...... there will be millions divreted to third parties.

Now, EIF's culpability will be to the extent that they knew of this or aided this. Maybe (speculation) they somehow privately benefited etc from this. All wmust be and will be revealed. ASIC should be watching this very very closely - I suspect tthat these issues will be at the core of the losses.

All good stuff and gives us all the potential for some additional recovery.
 
McIvor and Kolonel Klink Kennedy resigned at 5pm 14th June

Citing conflicts because of his family's large subordinated investment ... The same delusional diatribe... He doesn't get it does he? $100m of losses... What investment... Anyhow, if anyone is so worried about it... Do the right then by investors and turn it to share capital. Any how I imagine that ASIC has had a hand in this...maybe the banks, too

Thankyou to Colin Kruger of SMH for his dogged persistence and for the Ian Lazar led court case which brought so much to light.

One has to feel sorry for the remaining Board.... Hopefully they will have the good sense to shut the place down and our money back, as reduced as it now is.

New opportunities from this mob? Please Lord, spare us!
 
Get Rid Of All Of Them For Total Transparency

The fact that McIvor and Kennedy resigned is a good thing, however it changes nothing... McIvor is still pulling the strings in the background and the board in any independent assessment is not independent... This is the same scam as the 50M Capital Raising where they admitted they had a conflict yet proceeded with the farce anyway to see if they could get away with it.. They say the board is totally independent … So let’s have a closer look at this “so called” Independent board.

Not So Independent

Tucker and his firm have been McIvor's and Equititrust's lawyers for many years and in the application of the reasonable man test, independence or the perception of independence would not be met in any sense of the word. How can the company's lawyer as well as the founder Mark McIvor’s lawyer and personal friend be considered to be independent. This matter should be brought to the immediate attention of ASIC.

In terms of the other two "so called" independent directors, Craig Treasure and John Goddard were previously appointed and paid by McIvor to sit on the board. Seriously this is the biggest load of crap being pulled on investors I have ever seen... Independence with a few strings attached??? Nothing surprising coming from Equititrust.

Damage Control

McIvor clearly reeling from yesterday's damming Article by Colin Kruger in the Sydney Morning Herald is trying to head off Investor fury as well as regulatory intervention at the revelations of his intimate involvement with King Con at the expense retiree investor's life savings. His presence anywhere near investors’ money or decisions relating to their future was put to bed yesterday by Colin Kruger..

The proposed board is NOT independent in any sense of the word and will not survive... Investors should have been given the democratic right to vote on whether Equititrust remains the manager of the fund, not a loading of the decks with McIvor Stooges. How on earth can ASIC stand by and allow this further CONFLICT OF INTEREST to occur.

Appointment of Receivers to Equititrust

The only way investors can be represented independently is via the appointment of a receiver who will investigate possible breaches of the Corporations Law by the directors, appoint independent forensic accountants to investigate the murky and highly dodgy "King Con" loans as well as sell off the remaining assets as it is clear from yesterday's article in the Sydney Morning Herald that Equititrust has no future.

The announcement on the Equititrust Web Site reads:

"Mark McIvor will now focus on exploring a range of opportunities and potential proposals"


Is this a sick joke... After what was revealed in the SMH Article yesterday the same guy who was behind the loans to King Con will now offer investors opportunities and proposals... Does that mean brain storming sessions with "King Con"... ABSOLUTELY DELUSIONAL. These proposals and long promised opportunities never seem to materialise as it seems ASIC takes these idiotic, delusional self-serving proposals and cuts them down at the knees each time McIvor and Co go cap in hand to ASIC...

I encourage investors to contact ASIC, their local member, Federal Treasurer Wayne Swan and The Media to put pressure to bear to finally remove Equititrust from the management of the Fund before investors suffer further damage ..

Wayne Swan Contact Details:

Email: ministerial@treasury.gov.au

Electorate Office

Location:

1162 Sandgate Rd
Nundah QLD 4012

Tel: (07) 3266 8244

Postal Address:

PO Box 182
Nundah Qld 4012
 
WHOM WE TRUST
Colin Kruger
Sydney Morning Herald
June 15, 2011

Quote
"More news is expected today from law firm Piper Alderman on a campaign to oust Gold Coast mortgage fund operator Equititrust as the responsible entity (RE) for its flagship Equititrust Income Fund.
A new manager would help clear the air on some of Equititrust's more colourful decisions, like its massive loan exposure to the twice-bankrupt Dudley ''King Con'' Quinlivan.
Alas, a new RE will not be able to shed light on some of the more interesting developments around Equititrust's Chevron Island home.

The company's loan triage operation, Landsolve Partners, appears to have developed a life of its own and is hustling for investor funds.

Only big money is invited this time round - $50,000 minimum - which may rule out some of the poor pensioners who have done their dough at Equititrust.

There's not much in the way of details yet. Your columnist could not find any registration with the Australian Securities and Investments Commission, or any documents, for the Landsolve Capital Solutions Fund.

But don't worry; there are plenty of familiar faces. Equititrust and Landsolve Partners share the same telephone number, address and some of the same board members, including Equititrust's founder, Mark McIvor". End Quote


http://www.smh.com.au/business/arnotts-unwrapped-but-coe-takes-biscuit-20110614-1g21b.html

Well, it seems the "Not So Independent Board's" lifespan may be very short lived... It is good to see that Colin Kruger is exposing the other scams that these cowboys are trying to pull via renamed Phoenix Funds like Landsolve... All escape routes are being blocked for McIvor and co and it seems that Piper Alderman are about to make their move on behalf of long suffering investors and remove Equititrust, McIvor and his board stooges from the management of innocent retirees money once and for all...

The first cab off the rank for a new Responsible Entity should be a full forensic analysis of the loans made to King Con, a Mareva Injunction over McIvor's personal assets should also be an immediate priority to protect the interests of innocent retiree investors..

It now seems that a receiver being appointed to Equititrust will be inevitable given there are moves on foot to oust EquitiRust as Irresponsible Entity and actually appoint a responsible one. Given its precarious position to date and future inability to generate an income stream through holding investors hostage and collecting extortionate management fees it ultimately may be rather "Darwinian" and "Be the Survival of the Fittest"..

GOODBYE EQUITITRUST
​
 
Did anyone make a complaint to ASIC about Equititrust Limited proping up impaired loans and not disclosing this action to investors? Why weren't the auditors aware of the acts? If the auditors were aware of it, why didn't they advise invesotrs? Could you imagine if you'd been aware of that a year or two ago?

Isn't the auditor KPMG? a well known co/defendent in so many claims by members of damaged managed funds.

The auditors are there to protect investors.
 
KPMG were also MFS auditors and David Kennedy used to work at KPMG

all too close in my humble view
ASICK said:
Did anyone make a complaint to ASIC about Equititrust Limited proping up impaired loans and not disclosing this action to investors? Why weren't the auditors aware of the acts? If the auditors were aware of it, why didn't they advise invesotrs? Could you imagine if you'd been aware of that a year or two ago?

Isn't the auditor KPMG? a well known co/defendent in so many claims by members of damaged managed funds.

The auditors are there to protect investors.
Click to expand...
 
McIvors Resignation - Of His Own Accord Or Was He Pushed...

McIvor's resignation on the same day as Colin Kruger's "Damming Article" in the SMH seems too much of a coincidence to the average observer... The question now is where the pressure came from. Was it ASIC, the banks or did he know about the action about to be taken by Piper Alderman??? Or maybe it was an attempt at face saving i.e. resign before you are pushed..

One way or another if he didn't resign, he would not have seen the week out, let alone Valentine’s Day. Deja vu is seems, remember the resignation of Michael King at MFS when his presence was no longer tenable ... It’s like a broken record on the Gold Coast, replaying itself with the same old twists and turns as MFS, City Pacific and Asset Loan.

So does this mean that McIvor will respect the corporate veil and not come into the office anymore... One can only hope and pray this will be the case for the sake of all investors... But being Equititrust don’t bet your life’s savings on it…

I encourage all investors who as yet have not contacted Piper Alderman to do so.

Piper Alderman - Contact Details for the Class Action:

http://www.piperalderman.com.au/firm/equititrust-limited-class-action

dholland@piperalderman.com.au

or


Amanda Banton
Partner

Dispute Resolution and Litigation
Credit Management and Insolvency

Tel : +61 2 9253 9929
Fax : +61 2 9253 9900
abanton@piperalderman.com.au


Also refer to the Sydney Morning Herald Article by Colin Kruger 13 April 2011

"Lawyers Weigh Up Equititrust Class Action"

Quote
"The investigation is expected to look at potential claims against EIF's directors for allegedly breaching their statutory and fiduciary duties.

This includes payments to Equititrust, as the fund's manager, which the law firm does not consider bona fide. In the second half of last year EIF paid Equititrust $4 million, leaving the fund with almost no cash by year's end.

Also under investigation are possible unauthorised, imprudent investments by the company." End Quote


http://www.smh.com.au/business/lawyers-weigh-up-equititrust-class-action-20110412-1dco1.html
 
It's really a well-beaten track - a shiny new board (thing) to look at.

A duck for cover?
 
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