Wellington Capital PIF/Octaviar (MFS) PIF

Re: Octaviar MFS Premium Income Fund PIF

As a regular reader and contributor to this thread, it is absolutely clear that without the facility we would all be in the dark - like the thousands who don’t use it. The posts seem to comprise: 1. Bittter and justified comments about the past and present. 2. Conjecture about where we are heading. 3. Very useful updates from media sources etc. 5. Opinions about what we should be doing, often backed by time-consuming research. 6. Some black humour. 7. Action - as in the CA arrangement by the AG which was really impressive.

We really must not give up on defending our rights. Let’s all keep working together!

Re: Octaviar MFS Premium Income Fund PIF

There are many members using the forum and it is great to see. It would be nice if all of the users who are unit holders login, even if you don't have much to say, it would be nice if we could hear your views in order that the people who are really working on your behalf behind the scenes could get a sense of the mood out there and what future directions we should take. I am simply saying, "knowledge is power" "strength in numbers" and "people power". Please seriously consider this option.

Re: Octaviar MFS Premium Income Fund PIF

For anyone who is interested, Bernard Ripoll will be interviewed by Alan Kohler on the Inside Business program Sunday morning (tomorrow) on the ABC at 10am (EDT).

Re: Octaviar MFS Premium Income Fund PIF

charles36 said:

There are many members using the forum and it is great to see. It would be nice if all of the users who are unit holders login, even if you don't have much to say, it would be nice if we could hear your views in order that the people who are really working on your behalf behind the scenes could get a sense of the mood out there and what future directions we should take. I am simply saying, "knowledge is power" "strength in numbers" and "people power". Please seriously consider this option.

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You are right Charles, it would be good to know how many unit holders view this forum. Sadly, I doubt it is more than a couple of percent of Members........... I could be, ( and hope that I am), wrong.

Re: Octaviar MFS Premium Income Fund PIF

JohnH -

There are about 400 hits to this thread within a 24 hour cycle. (The link to the JH YouTube video scored about forty hits after being posted here.)

Re: Octaviar MFS Premium Income Fund PIF

I haven't been back through the posts to check, but has the draft ASIC Statement of Claim been posted on the forum? If anyone is interested I'm happy to email it to them for posting on the forum.

Re: Octaviar MFS Premium Income Fund PIF

Thanks Hiekka

The ASIC originating application is also on the IMF website http://www.imf.com.au/caseoverview.asp Just click on the right hand side link - Current Cases - and in the dropdown click on KPMG
At the bottom of the page you will also find the Amended and Further Amended versions of our Statement of Claim. This page also lists future Court dates etc.

Re: Octaviar MFS Premium Income Fund PIF

seamisty said:

It appears there are lots of relevant PIF questions that deserve answers and are not being satisfactorily responded to by the Wellington Capital hotline or JH. I suggest we collate investor queries on a monthly basis from contact we receive re the forum or email as in my opinion this forum is still the only independent contact and information point and send them directly to our RE requesting adequate responses. If the issues are not addressed and answered satisfactorliy and promptly , we then have the right to lodge a formal complaint with ASIC who are already 'on the case' and should take on board these issues and deal with them appropriately.


Also, in our investor ranks do we have some one qualified to simplify the latest IMF report as I have had several enquiries as to what the implications are re Wellington Investment Management Ltd still being named a respondent in the IMF Class Action as a result of their lack of cooperation with our lawyers, contrary to what JH indicated she would do in exchange for being removed from the same .Thanks, seamisty

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This seems to be the most efficient course of action at the present time. What we need is a list (not too long) of key questions that WC is not giving us answers on. Such as the 25% INTEREST LOAN, INVESTOR REPS VOTING, LOAN PORTFOLIO VALUATION, etc.

Submit these directly to WC on behalf of the PIF AG and its members seeking an official response. If we receive an unsatisfactory response then we lodge a complaint with ASIC. If we can demonstrate a lack of transparency, lack of disclosure and actions which are not in the interests of investors, ASIC may take action against the WC financial services licence.

Many contributors to this forum have raised important questions which can form the basis of the list. I will go through the posts and extract a a list of questions and I will post these for coment. Anyone who wishes to add to the list just put up a post.

While I was composing this I thought "is it wise to compile this on an open forum"? I concluded that WE HAVE NOTHING TO HIDE, WC IS THE ONE WHO IS NOT BEING OPEN WITH INVESTORS.

Comments on the strategy please.

Re: Octaviar MFS Premium Income Fund PIF

Hiekka said:

I haven't been back through the posts to check, but has the draft ASIC Statement of Claim been posted on the forum? If anyone is interested I'm happy to email it to them for posting on the forum.

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Thanks Hiekka and welcome to the forum. I have read the ASIC SOC (Marcom it is not the IMF SOC) and it is compelling reading. I am hoping someone else will post the attatchment as my computer skills are challenged when it comes to attatchments! Seamisty

Re: Octaviar MFS Premium Income Fund PIF

marcom said:

This seems to be the most efficient course of action at the present time. What we need is a list (not too long) of key questions that WC is not giving us answers on. Such as the 25% INTEREST LOAN, INVESTOR REPS VOTING, LOAN PORTFOLIO VALUATION, etc.

Submit these directly to WC on behalf of the PIF AG and its members seeking an official response. If we receive an unsatisfactory response then we lodge a complaint with ASIC. If we can demonstrate a lack of transparency, lack of disclosure and actions which are not in the interests of investors, ASIC may take action against the WC financial services licence.

Many contributors to this forum have raised important questions which can form the basis of the list. I will go through the posts and extract a a list of questions and I will post these for coment. Anyone who wishes to add to the list just put up a post.

While I was composing this I thought "is it wise to compile this on an open forum"? I concluded that WE HAVE NOTHING TO HIDE, WC IS THE ONE WHO IS NOT BEING OPEN WITH INVESTORS.

Comments on the strategy please.

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Yes please Marcom my time is limited so collate away and I am sure Breaker will forward them on to WC on behalf of PIF investors. Many of the issues raised have been raised previously with WC and as yet have not been satisfactorily answered. It is bad enough the deteriorating state of the PIF with out having the added insult of not being adequately informed. I also think in view of the fact that had ASIC intervened when they were first alerted to the fact of a gross missapropriation of PIF funds our current situation may have been avoided, so in view of the evidence available now to substantiate our original complaints perhaps they will be more supportive. I urge all investors to take avail of this opportunity to put your concerns forward and those who don't normally post to please do so. We are at an important crossroad and it is imperative to combine and utilise any support offered. Cheers, Seamisty

Re: Octaviar MFS Premium Income Fund PIF

seamisty said:

Thanks Hiekka and welcome to the forum. I have read the ASIC SOC (Marcom it is not the IMF SOC) and it is compelling reading. I am hoping someone else will post the attatchment as my computer skills are challenged when it comes to attatchments! Seamisty

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Seamisty, the ASIC Application is also on the IMF website - here is the direct link http://www.imf.com.au/pdf/KPMG_3.pdf

Re: Octaviar MFS Premium Income Fund PIF

marcom said:

Seamisty, the ASIC Application is also on the IMF website - here is the direct link http://www.imf.com.au/pdf/KPMG_3.pdf

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Sorry, Thanks Marcom. What did you think of it? Below is a letter sent to Fund Advisers after the alledged crimes had already been committed and not long before the alledged forged documents were invented to cover the alledged activities!!! The letter is the biggest load of BS and had ASIC stepped in earlier the proceeds from the original sale of the 65% Stella should have been used to pay down the RBOS loan and pay the support facility. We are owed far more than 147.5mill my friends!!! Seamisty


1
23 January 2008
Dear Adviser
MFS Premium Income Fund
Following recent events regarding MFS Limited and current financial market
volatility, we thought it would be beneficial to write and clarify the management and
operational structure of your MFS Premium Income Fund investment.
The following points should answer many of your questions and we will continue to
provide you with updates in relation to the fund.
Fund Performance History
Over the last seven years since the inception, of the Fund it has always achieved its
performance targets and delivered the published Target Rates of Return. This is a
result of the disciplined investment process adopted by MFS Investment
Management.
We anticipate that the Fund will continue to meet its investment objectives for unit
holders.
Fund Objective
MFS Investment Management’s investment approach has always been as an active
manager who invests in assets which have simple and transparent structures with
an emphasis on the diversification of risk.
The objectives of the fund are:
• Preservation of Unit holder capital
• Maintenance of liquidity to meet forecast withdrawals and monthly distributions
• Achievement of a positive net portfolio yield in order to meet target return
obligations to Unit holders
• Matching the maturity profile of investment assets with investors’ investment
term options
Fund Governance
MFS Investment Management is overseen by a five member Board of Directors
(three independent members) who are committed to industry best practice corporate
governance and providing investors with full disclosure of corporate governance
practices.
The MFS Premium Income Fund is a registered managed investment scheme
governed by a constitution and compliance plan. MFS Investment Management is
the Responsible Entity and issuer of units in the Fund. The Fund is managed to its
2
Constitution with a focus on the security of assets and income on those assets. The Premium
Income Fund’s assets are held by an independent custodian (Perpetual Nominees Ltd).
Exposure to MFS Limited shares
Your Fund does not invest in MFS Limited shares and is not impacted by the recent movements
in the MFS Limited share price.
MFS Limited
MFS Limited is a company listed on the Australian Stock Exchange and a completely separate
legal entity to the Premium Income Fund. Please note the share price performance of MFS
Limited does not affect your investment in the MFS Premium Income Fund.
As announced today, MFS is presently in detailed discussions with a number of parties interested
in acquiring a substantial interest in the Stella tourism business. MFS is aiming to reach an
agreement within the next two weeks. The proceeds of any transaction would not only result in
full repayment of all short term maturing debt facilities, but further strengthen the financial
position of MFS.
For current announcements to the market on MFS Limited, please visit the MFS Shareholder
Centre at www.mfsgroup.com.au, or the Australian Stock Exchange at www.asx.com.au.
Yours sincerely
CRAIG WHITE
CHIEF EXECUTIVE OFFICER
MFS LIMITED
GUY HUTCHINGS
CHIEF EXECUTIVE OFFICER
MFS INVESTMENT MANAGEMENT LIMITED

Re: Octaviar MFS Premium Income Fund PIF

seamisty, Given the chain of emails, accounting entries, Board Minutes etc which which I am sure support the ASIC application, it looks like they have the respondents "on toast". No amount of argument that "we were going to replace the RBS loan funds with the sale of 65% of Stella" will wash. These are clear breaches of the Act, PIF Constitution, AFS License etc. Critically, the misappropriation proves MFS were insolvent in November 2007 and that fact when judicially accepted will assist the liquidator to claw back funds/compensation in relation to some of the transactions that were perpetrated while insolvent.

Some concerns are - the ASIC application calls for the respondents to "...pay the Responsible Entity for the Premium Income Fund $XXX M compensation for loss caused by the contraventions..." That means the amount of compensation secured will be paid to WC when it should be paid directly to investors.

How much we will get is another question. After payment of ASIC fines $200,000 each plus all costs, some respondents may be a tad short. There is also the prospect of further CRIMINAL charges after the civil action. In the end it will come down to the D&O insurance - but as there is an element of criminal activity here the insurers may be able to lessen liability.

As for our CA - findings in the ASIC case will lessen the burden of proof in relation to these transactions in our CA.

Re: Octaviar MFS Premium Income Fund PIF

It would be a real blow if any ASIC compensation gained were to be handed straight to WC. We want cash! After all, its our money that was lost, not WC's. And to add insult to injury, WC are not exactly being helpful when it comes to our CA.

Re: Octaviar MFS Premium Income Fund PIF

And what about all of us who have sold our shares; it was OUR money, not the new investors money that was "stolen", and it will all go into JH's coffers.

It could also ensure that it bankrupts them all prior to the CA, wouldn't it? Then, apart from insurance, what is there left to pay us then. Can they be asked to pay for some of the same crimes twice? Obviously not!

Re: Octaviar MFS Premium Income Fund PIF

Mary Lynch said:

And what about all of us who have sold our shares; it was OUR money, not the new investors money that was "stolen", and it will all go into JH's coffers.

It could also ensure that it bankrupts them all prior to the CA, wouldn't it? Then, apart from insurance, what is there left to pay us then. Can they be asked to pay for some of the same crimes twice? Obviously not!

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Mary, I'm not sure that it would be for the benefit of the "new" investors - surely it would be fixed at the date of the misappropriation - worth asking your barrister son-in-law.

As Carney has said all along we will receive most of the CA compensation from KPMG's insurance policy.

Re: Octaviar MFS Premium Income Fund PIF

Marcom/Seamisty,

The document on the KPMG site is only the Application (circa 10 pges). There is also a circa 65 page Affidavit from the ASIC lawyer which attaches the draft Statement of Claim. That document goes into great detail (email trails etc) re the internal communications at MFS & PIF re the $147.5m. It is very apparent from the claim who was driving the show.

I don't know how to post the attachement, but I'm happy to email through to you.

Regards,

Hiekka.

Re: Octaviar MFS Premium Income Fund PIF

Well OK, so ASIC are actually admitting that yes there is a case and they are investigating and have instigated legal proceedings. Where is the bloody media that sat up JH's derriere and followed her and the travelling well paid circus around , reporting on every cough, fart and sneeze?? Hey guys and girls, there is an even bigger story emerging and it appears the blinkers have been slapped on and ear plugs inserted. Whatever happened to supporting the victims and the current repurcussions being experienced by thousands of innocent trusting individuals?? Don't you recognise the opportunity to actually report the truth and expose one of the biggest possible rorts and culumative crime from previous associated parties? I thought PIF investors were apathetic but journos and media reporting on this subject are either totally short sighted, lazy or have a different agenda. Time to direct effort to individuals that may benefit directly for being honest and focus on getting the facts out there I think. We are at least recognising those with vested interest to know who not to rely on. Early days with more to come IMHO. SHAME SHAME SHAME to those that failed to help and intervene on behalf of those that cried for help, and yes, a smart journo would have followed up on investor sentiment, not accepting a bunkered down mentality from someone that found delivering on promises that snared a yes vote was not sustainable but rather than be open and transparent as previously promised has gone to ground . Every dog has its day, wearing a red jacket just makes it more easier to spot. Seamisty.

Re: Octaviar MFS Premium Income Fund PIF

SMH business day ::: http://www.smh.com.au/business/lots-of-wear-and-tear-down-at-the-waterfront-20091115-igce.html SCOTT ROCHFORT
November 16, 2009

TANGLED WEBS

David Anderson, founder of Business Puzzle Solutions and company secretary of the collapsed Gold Coast financial concern Octaviar, appears to be a gun for hire.

Bentleys Corporate Recovery, the new liquidator of Octaviar (aka MSF), will terminate the services of Business Puzzle Solutions from Wednesday.

Anderson set up the firm last year to help the former administrator and liquidator Deloitte untangle the financial mess that was MFS.

The former chief financial officer of MFS saw his firm get paid $940,000 in ''consultancy fees'' from Deloitte in less than a year. Bentleys is yet to disclose how much extra was paid to Business Puzzle after it took charge.

The fees compare with the $532,133 base salary Anderson pocketed in his last full year as chief financial officer at MFS, before things went pear shaped. Bentleys served Anderson his notice when they replaced Deloitte in September. It is believed Anderson was also restricted by Bentleys to only being allowed to visit the office during working hours. Anderson will probably not be around to answer questions when the next Octaviar creditors' meeting is held next month. The company has more than $1.7 billion of outstanding bills.

Re: Octaviar MFS Premium Income Fund PIF

Hello Hiekka, I have sent you a private message with my email.