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Equititrust?

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No Trust said:
ASICK has not spoken to Piper Alderman and I suggest investors do so and get any independent advice they think fit before making a decision. Piper Alderman is on the front foot and it will not cost the investor's anything upfront. Investors do not have the money to fund a legal claim. What Piper Alderman is doing is sensible. They are first investigating the merits of the claim via the Federal Court rather than launching into a full scale assault. This costs the investors nothing. NO ONE else is doing this and this is what should be done at this Early Stage rather than waiting for a liquidator to firstly get appointed and then to get of his ass and do something. This is a proactive approach and why a lot of investors have signed up even after getting independent legal advice...

I encourage investors to speak to Piper Alderman and get all the facts before making a decision...
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My understanding from the Piper Alderman proposal is that the costs of investigating the merits of the case are deducted from any settlement sums before the percentage split between the litigator and investor are dealt with. If costs are awarded in the settlement, this should not be much of a problem for investors, but if there are no costs awarded it will reduce the return to investors - and this could be significant. There are already costs being racked up on this account for work done to date.
 
ASICK said:
No Trust, I most certainly have not spoken to PA since I'm not a unitholder in your fund.

You might speak to members of the PIF (as I suggested) about what happens when a class action commences and a fund manager wants to get into the act on behalf of the fund. I really don't think anyone in the PIF knows what the outcome will be.

You'll all be aware that it'll cost about 26% of recoveries (maybe increasing with time) to join a class action - the litigation funder is also entitled to recovered costs.

If a liquidator brings the action the costs will be substantially less but there's no insurance against loss - however with proper litigation management, lost costs can be mitigated. Further, the fund will be entitled to recover costs.

If a liquidator takes over the fund, the liquidator is entitled to commence proceedings for losses suffered by the fund (not the members of the fund per se).

I can undersand PA wanting to get into the act, there might be a bag of money in it for them, but remember if you sign up for the deal with a class action you may will find yourself limiting your rights elsewhere.

I think members should wait should wait until you find out what is happening within the management of your fund and further get independent advice about the pros and cons of even talking to the class action lawyer: it could be the case that members will not be able to opt out of the class action once signed up to it.

There are only my opinions tendered in good faith.
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The Piper Alderman class action take has been advised at much more than 26%, and it does increase over time. In view of the mess needing to be dealt with, and assuming it takes more than 12 months (which it will, obviously) we will end up paying the maximum in fees. There won't be a lot left for investors once the fees are sorted.
 
Re: A LAWYER'S NIRVANA !!!!

kostag said:
4. The Insolvency industry around Sydney are all fighting their way into Piper Alderman’s door to somehow get the job of Liquidator. That is where the money is, I am afraid. No-one is talking seriously now about any recovery for anyone. That is fact.
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If PA sue Equitrust Limited for breaches of its duty why would this give PA any rights to appoint a liquidator of EIF?

Even if PA wins against Equitrust Limited any payment may well have to stand in line after the Banks etc.

Does anyone know any details of the Bank loans to Equitrust Limited and what security was given for the loans.
 
Re: A LAWYER'S NIRVANA !!!!

klua said:
If PA sue Equitrust Limited for breaches of its duty why would this give PA any rights to appoint a liquidator of EIF?

Even if PA wins against Equitrust Limited any payment may well have to stand in line after the Banks etc.

Does anyone know any details of the Bank loans to Equitrust Limited and what security was given for the loans.
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http://www.couriermail.com.au/ipad/loans-pressure-boosts-equitrust-woes/story-fn6ck2gb-1226188147411

The Courier Mail article suggests a loan to Westpac around $24 million....
 
ASIC has released new financial requirements for responsible entities

ASIC has released new financial requirements for responsible entities (REs) of managed investment schemes (MISs).


The changes, implemented through Class Order (CO 11/1140]) and outlined in updated versions of Regulatory Guide 166 Licensing: Financial requirements (RG 166) and Pro Forma 209 Australian financial services license conditions (PF 209), aim to ensure REs have adequate resources to meet operating costs and there is appropriate alignment with the interests of investors.


To meet the new net tangible asset (NTA) capital requirements, REs must hold the greater of:
•$150,000
•0.5% of the average value of scheme property (capped at $5 million), or
•10% of the average RE revenue (uncapped).


Read the Article below and make your own assessment as to whether Equititrust will keep its license.

http://www.adviservoice.com.au/2011...ancial-requirements-for-responsible-entities/
 
Legal Action and Recovery

Notice how quiet Equititrust have become in regard to the legal actions on foot that Tucker was running... No mention whatsoever. When Equititrust becomes silent its because they are hiding something and this is a big one. The interests of investors have been jeopardized by this idiotic conflict of interest. If an independent firm was acting this scenario would not have arisen.

I alerted everyone in regard to the financials on this thread recently and look what emerged, non lodgment then ASIC action. Here we have a grave situation where all the legal actions have now stalled and there will probably be another legal action against Tucker for the release of the files and a cross claim by Tucker for payment of legal fees.

McIvor is solely to blame for this conflict of interest...
 
Re: ASIC has released new financial requirements for responsible entities

No Trust said:
ASIC has released new financial requirements for responsible entities (REs) of managed investment schemes (MISs).


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Equititrust Limited has previously put in a disclosure that there was some problem under the old rules:
see here:
http://www.equititrust.com.au/Pdfs/Disclosures/Disclosure_Statement_03_11_2011.pdf
Equititrust has recently lodged with ASIC a number of Form FS80s – Notification by
an AFS Licensee of a significant breach of a Licensee’s obligations, in circumstances
where a breach has occurred or is likely to occur.
 
Re: ASIC has released new financial requirements for responsible entities

No Trust said:
ASIC has released new financial requirements for responsible entities (REs) of managed investment schemes (MISs).


The changes, implemented through Class Order (CO 11/1140]) and outlined in updated versions of Regulatory Guide 166 Licensing: Financial requirements (RG 166) and Pro Forma 209 Australian financial services license conditions (PF 209), aim to ensure REs have adequate resources to meet operating costs and there is appropriate alignment with the interests of investors.


To meet the new net tangible asset (NTA) capital requirements, REs must hold the greater of:
•$150,000
•0.5% of the average value of scheme property (capped at $5 million), or
•10% of the average RE revenue (uncapped).


Read the Article below and make your own assessment as to whether Equititrust will keep its license.

http://www.adviservoice.com.au/2011...ancial-requirements-for-responsible-entities/
Click to expand...

10% of the average RE revenue should be a cinch ..
10% * $0 = $0

(as long as the average pertains only to the current year)

oh.. darn, I didn't read 'the greater of' .. what a shame (for Equititrust)
 
Looks like Insurers are distancing themselves

Have followed ths thread over last few months and whilst not an investor I do feel for the investors stuck in this mess. I add that I do have friends who have invested in Equititrust.

From their WEB site today.

http://www.equititrust.com.au/Pdfs/...atement_11_11_2011_Extension_of_Insurance.pdf

Extension of Insurance for Equititrust Limited

Equititrust Limited has obtained an extension of the existing insurance policies until 4pm on the 21st November, 2011 on the basis of a liability limit of $6million but with Inception only cover from 00:00 on 12 November 2011.

The Directors note that this breaches a condition of Equititrust’s AFSL which will be notified to ASIC forthwith.
 
No Insurance after the 21st

Coincidentally the hearing date for the ASIC hearing is the 21st of November...

This is not only a breach of the FSL it is also a breach of the loan covenants with the banks... Expect to see more MAJOR developments within the coming weeks including the appointment of receivers to Equititrust.

Nice work McIvor, that DONKEY principle of running a mortgage fund has really worked well for you... This sorry saga is a national disgrace................
 
Ban McIvor

The next important milestone is to ban McIvor from ever obtaining a FSL again...
 
Legal Action and Recovery

At what point will Equititrust make an announcement on the ongoing battle with Tucker about the release of the files pertaining to the legal action and recovery of outstanding loans.. I have mentioned this on a number of occasions and cannot overemphasize the importance of this issue as millions of dollars have been spent on legal recovery and this will all go up in smoke unless something is done about it. ASIC surely has to step in to rectify this disaster..

This is another instance where McIvor and Tucker prioritized their own self interest rather than the interests of investors. This situation where Tucker was in a clear position of conflict was highlighted by me on this thread on numerous occasions and look where this conflict has now led. Surely basic corporate governance must be a prerequisite for a AFSL.. These idiots have failed miserably..... Having a mate be the company lawyer as well as a director is a gross dereliction of duty and a slap in the face to elderly retiree investors...
 
Directors Fees

How much was Tucker paid to be a director of Equititrust ?
 
How many other prominent Gold Coast Business people are involved in this mess??

Why is the Gold Coast Bulletin so quiet about the further massive losses ???

Why doesn't the Gold Coast Bulletin care about that happens to innocent retiree investors... Nick Nichols should be ashamed of himself. It proves the Gold Coast Bulletin is not a serious, objective newspaper. How could a story like this be suppressed when it's happening in the Bulletin's own backyard...
 
Equtitrust Melt Down

afp.jpg
+
asic_.jpg
= No More Equititrust

The above Equation sums up the fate of EquititRust and its founder Mark McIvor.........

Banks are calling in their loans and Insurers will not insure them past the ASIC hearing on the 21st..........

There is now a litany of breaches of the FSL

When will someone place some form of an injunction over McIvor's personal assets ?????

When will a travel ban be placed on McIvor preventing him leaving Australia ???

When will there be an inquiry into how many assets his wife Stacey McIvor is holding on his behalf ???

Many questions to be answered yet no answers for the investors watching from the sidelines.

Rest assured these issues will be relentlessly followed up until there are answers
 
Remember This

Remember this Steaming Pile of Horse Crap

Coast's Equititrust comes out fighting

Mr McIvor said Equititrust's new inflow drive initially would target investors 'who know us very well' and would then extend it to the broader market.

"It is inevitable that money will flow in. We are going to grow."

http://www.goldcoast.com.au/article/2010/10/26/265891_gold-coast-business.html


McIvor made these comments a year ago... What happened to the 500M in assets he talks about or was he just talking Sh#t as usual...
 
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