Wellington Capital PIF/Octaviar (MFS) PIF

Duped · 11 May 2010

http://www.theaustralian.com.au/bus...erms-court-hears/story-e6frg8zx-1225864764674

"NAB 'reneged' on terms, court hears"

* Susannah Moran
* From: The Australian
* May 11, 2010 12:00AM

"Former chief financial officer David Anderson continued ... saying NAB was "promising" to give them a facility and would agree not to aggregate loans made to various MFS companies.

He said he understood NAB had "reneged" on the issue of the aggregated loans.

"Mr King wasn't happy?"the liquidator's barrister, Adam Bell SC, asked. "He wasn't happy," Mr Anderson replied."

"Mr Anderson also told the court that a $250 million facility from Fortress Credit may not have been used for the purpose he outlined in an email to Fortress executives in May 2007, but this had not affected the loan agreement and MFS had given a charge to Fortress over various MFS companies.

Asked what the money was spent on, Mr Anderson replied in part: "To answer that question . . . that tracing exercise, you really need to have a look at the accounting systems."

Seems like some expert dodging of the key question there.

selciper · 11 May 2010

"Mr Anderson said there was a degree of flexibility as to how the money was supposed to be used." (AAP) "Flexibility" may become the buzz word in the coming months and years.

simgrund · 11 May 2010

seamisty said:
#5576 Simgrund I sent the following to ASIC on the 12 Nov 2009 .....................................
..............And ASIC wonder why they receive so many complaints, maybe something to do with them not answering them? Perhaps it is time I re sent the original enquiry accompanied with a complaint.
Seamisty

Thanks, seamisty.
At least some comfort that question was raised by PIF AG.
Good work.

seamisty · 11 May 2010

simgrund said:
Thanks, seamisty.
At least some comfort that question was raised by PIF AG.
Good work.

Hi Simgrund, I spoke with a person with ASIC just now , have re-submitted my original email and have received acknowledgement. Hopefully I will get a response (containing answers!!!) Cheers, Seamisty

simgrund · 11 May 2010

seamisty said:
Hi Simgrund, I spoke with a person with ASIC just now , have re-submitted my original email and have received acknowledgement. Hopefully I will get a response (containing answers!!!) Cheers, Seamisty

Great to hear. Another salute to PIF AG.
Please PIF IAC, let's hear from you as well.
All combined efforts are to the good of ALL unit holders.
Regards,

seamisty · 12 May 2010

MFS exec questioned on pre-crash payout
Susannah Moran From: The Australian May 12, 2010 12:00AM

Yesterday, the court was told of email correspondence between Mr Anderson and chief executive Michael King in the early hours of May 29, 2007. "I would love to go for as much as possible, in case you hadn't noticed," Mr King said of a proposed dividend, with a smiley emoticon at the end of the email

Full story http://www.theaustralian.com.au/bus...pre-crash-payout/story-e6frg8zx-1225865202120

MFS scheme for dividend KATE LAHEY
May 12, 2010

IN THE middle of the night, over email, as the financial year neared its end, the men who ran the investment group MFS engineered a plan to deliver a healthy dividend for shareholders out of profits they did not have, the New South Wales Supreme Court has heard.

http://www.smh.com.au/business/mfs-scheme-for-dividend-20100511-uuy9.html

Jadel · 12 May 2010

MFS could have paid its dividend from a $100 million placement the group might have received, Mr Anderson said. MFS collapsed in 2008 owing $2.5 billion. The examination continues today.

This is beginning to look like a gigantic Ponzi sheme from early 2007.

I wonder if Andrew Peacock has once cast his eyes over a balance sheet or set of accounts with any business he has ever been associated with as a Company Director

Simgrund, I can assure you that all action groups are working together and doing everything in their power to redress the appalling state of affairs

Duped · 12 May 2010

My favourite bits in the latest Kate Lahey article:

"Mr Anderson replied at 4.46am that to do that, at a cost of $94 million, they would need a pre-tax profit of $230 million, or after-tax profit of $160 million."

it goes on to say:

"''There was no other available source of cash to pay the dividend,'' Mr Bell said.

Mr Anderson said that claim was ''rubbish'' and MFS had ''significant equity'' at the time. ''There is no evidence these were the only funds available,'' he said."

Full version of the article is at http://www.watoday.com.au/business/dividend-out-of-thin-air-at-mfs-20100511-uupt.html

So when did profit and equity become the same thing?

What a joke our financial regulations are. Jadel, this suggests to lay me that Ponzi schemes are completely legal in Australia in practice.

WC MUST RESIGN

selciper · 12 May 2010

Except for an earlier reference to Korda Mentha, there appears to be no substantial mention yet of any auditors. The same goes for the former chairman. The thought that PIF investors were possibly assisting in the paying of dividends to MFS shareholders is sickening.

mellifuous · 12 May 2010

seamisty said:
MFS scheme for dividend KATE LAHEY
May 12, 2010

IN THE middle of the night, over email, as the financial year neared its end, the men who ran the investment group MFS engineered a plan to deliver a healthy dividend for shareholders out of profits they did not have, the New South Wales Supreme Court has heard.

http://www.smh.com.au/business/mfs-scheme-for-dividend-20100511-uuy9.html

Seems like the tax office might have to repay any tax paid by the company and by investors on this one.

That would mean that any tax repaid paid to MFS should be claimable by the PIF.

That's give the fund back 30% of the total.

simgrund · 12 May 2010

Jadel said:
#5586 ---------------------Simgrund, I can assure you that all action groups are working together and doing everything in their power to redress the appalling state of affairs

Thanks Jadel,
I speak of the elected representatives and of our desire to hear them involved in a visible way.
It would lift so many unitholders' spirits to have this support known.
Thank you again,
Regards

selciper · 12 May 2010

This article from Time Magazine in December 08 describes the role of auditors in the Bernie Madoff scandal.

http://www.time.com/time/business/article/0,8599,1867092,00.html

seamisty · 12 May 2010

mellifuous said:
Seems like the tax office might have to repay any tax paid by the company and by investors on this one.

That would mean that any tax repaid paid to MFS should be claimable by the PIF.

That's give the fund back 30% of the total.

According to a media report posted on bentleys website::
Bentleys have Corresponded with the Australian Taxation Office in relation to a freezing
order which it has served on OA, preventing creditors from accessing
approximately $60 million.

http://www.bentleys.com.au/files/do...essionid=7f247d51-01eb-4292-8a4d-a88e31656a63

King and Whites turn next, I wonder if the Wellington Capital terms of PIF aquisition will be discussed this week?

Seamisty

mellifuous · 12 May 2010

Duped said:
My favourite bits in the latest Kate Lahey article:

"Mr Anderson replied at 4.46am that to do that, at a cost of $94 million, they would need a pre-tax profit of $230 million, or after-tax profit of $160 million."

it goes on to say:

"''There was no other available source of cash to pay the dividend,'' Mr Bell said.

Mr Anderson said that claim was ''rubbish'' and MFS had ''significant equity'' at the time. ''There is no evidence these were the only funds available,'' he said."

Full version of the article is at http://www.watoday.com.au/business/dividend-out-of-thin-air-at-mfs-20100511-uupt.html

So when did profit and equity become the same thing?

What a joke our financial regulations are. Jadel, this suggests to lay me that Ponzi schemes are completely legal in Australia in practice.

WC MUST RESIGN

Yes, it's also a joke about these funds being based on valuations of real property, valuations managers have discretion to alter for 1001 reasons.

Perhaps there's a lot of jokes - but it's a truism that they're all capable of becoming scams.
..

seamisty · 12 May 2010

Octaviar executive denied colleague access to documents: court

The court heard some documents containing credit analysis and briefing notes evaluating a proposed transaction involving one of MFS's funds in October 2007 may have been backdated.

Asked if he was aware of documents being backdated, Mr Anderson said "no", before asking for the question to be re-asked.

His more expansive reply was: "I wasn't aware with any certainty of any documents being backdated.

"I don't recall ever being aware of any documents being backdated or allegations of documents being backdated before 2008."

Full article

http://www.tradingroom.com.au/apps/...ished/2010/5/132/catf_100512_183300_9516.html

seamisty · 13 May 2010

http://www.smh.com.au/business/mult...ns-powers-of-concentration-20100512-uy37.html

Talk about 'snouts in the trough'!!!! Was Anderson helping Deloittes 'pick through the wreckage' or was he 'picking up assets from the wreckage' while being paid handsomely for the privledge? What on earth was Deloittes doing? Oh boy, getting really interesting now!!

And another one:http://www.smh.com.au/business/form...s-has-stake-in-new-company-20100512-uy35.html

'Yesterday in court, Mr Anderson defended his role in an alleged raid of the MFS Premium Income Fund to pay a $100 million loan to Fortress Credit on November 30, 2007, saying he did not consider at the time where the money was from.'

When colleagues later asked him for details of loans involving the Premium Income Fund, he refused to tell them because, he told the court, it was none of their business and they didn't know what they were talking about.

Seamisty

seamisty · 13 May 2010

Class Action movement::

14-May-2010 10:15 Judgment Justice Perram Court Room 22A

Possibly to do with the Statement of Claim???

Seamisty

selciper · 13 May 2010

Great to see movement tomorrow on the CA front. Also, the fact that the veteran SMH business journalist, Scott Rochfort, reported today on the OCV liquidator's hearing could well mean increased coverage by that paper of the examinations. If so, it will lead to increasing exposure for some people.

seamisty · 13 May 2010

http://news.smh.com.au/breaking-new...iar-exec-opens-up-in-court-20100513-v1j6.html
Thanks Jason Chong::
Starting to get warmer!!! Do I detect some contradictions?

Former Octaviar exec opens up in court JORDAN CHONG
May 13, 2010 - 7:34PM

The information Mr Anderson provided in his email response, the court heard, related to the source of funds for the company's October dividend payout.

Mr Anderson said he was "confused" about the two separate matters and responded to the question in error.

"I acknowledge that email is not the correct answer to the question that was asked and I can only put that down to my being confused by two sets of transactions," Mr Anderson said.

He said he was "not in any way" trying to give false information.

"Are you suggesting that it is inconceivable that I would ever make an error?" Mr Anderson said
:bs: At the rate Anderson charges I would expect no room for errors!!! We are not :sheep:

Seamisty

seamisty · 13 May 2010

What really concerns me is that ordinary people who invested in so called 'safe' funds after being advised and relied on so called reputable investment rating agencies and financial advisers etc have been left to fend for themselves and basically ignored by tax payer funded regulatory bodies, media , mps and even their own RE's etc when it has been made public they were rorted, robbed and deceived!!! (and possibly still in the same leaky boat)

And the perpetrators are still out there pleading their innocence and still in business!! We were not 'greedy' as has been indicated, the greedy ones are still at large!!! Trying to justify their well paid for actions. No wonder the majority of PIF investors are so apathetic, how long can one for without sustaining permanent injury?
Pretty sad really, I can only hope that if there was/is employees at MFS/OCV/WC that knew/know the truth that they have had the guts and the honesty to do the right thing because I don't think this issue will be resolved in the short term.
Seamisty

Wellington Capital PIF/Octaviar (MFS) PIF

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