Wellington Capital PIF/Octaviar (MFS) PIF

http://www.smh.com.au/business/valad-shareholders-left-in-the-dark-20100617-yjuu.html

EARNING A CRUST

The former MFS chief financial officer, David Anderson, has played down any notion he was well paid when his firm Business Puzzle Solutions Pty Ltd helped the former liquidators and administrators sift through the Gold Coast corporate wreck, Deloitte.



Asked by Adam Bell SC, for the current liquidators Bentleys Corporate Recovery, what Business Puzzle Solutions was, Anderson explained to yesterday's public examination into the MFS collapse: ''As your clients are well aware, it provided services to them and to their predecessors Deloittes.''

Asked if he had received any income from it in the past three years he said: ''It may have paid some costs on my behalf, I haven't received a salary.'' Business Puzzle, which is solely owned by Anderson, was paid more than $900,000 in consulting fees in less than a year when Deloitte was overseeing things.

Interesting isn't it that my partner (who has never supported me, as we have only been together 11 years), who is a 71 year old retired architect now on the pension, has to declare to Centrelink every cent I earn, as it is deducted from his pension at the rate of 50c per dollar (after a small allowance). If he was to dupe Centrelink he would risk losing his pension altogether.

Here we are with this noose around our neck as our financial circumstances in 2008 were particularly frightfully affected being between homes...and David Anderson gets to say that he chooses not to disclose his financial details as it would be too much homework to do!!! Well, if he's worth so little surely it won't take him long.

Seamisty, how is he allowed to just refuse like that?

Mary Lynch said:

Interesting isn't it that my partner (who has never supported me, as we have only been together 11 years), who is a 71 year old retired architect now on the pension, has to declare to Centrelink every cent I earn, as it is deducted from his pension at the rate of 50c per dollar (after a small allowance). If he was to dupe Centrelink he would risk losing his pension altogether.

Here we are with this noose around our neck as our financial circumstances in 2008 were particularly frightfully affected being between homes...and David Anderson gets to say that he chooses not to disclose his financial details as it would be too much homework to do!!! Well, if he's worth so little surely it won't take him long.

Seamisty, how is he allowed to just refuse like that?

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I imagine Anderson is only hoping to delay the inevitable Mary but hindering proceedings will not go well in his favour!! Any wonder we are in such a predicament with people like this allowed to hold positions of responsibility and trust? I've come across some low life bottom feeding scumbags in my time Mary, but this lot sure take the cake! (and eat it too?)

I am wondering if there aren't a few gaps in what is being revealed to the media at present from the current examinations? All will be revealed.

Seamisty

Mary Lynch said:

... Seamisty, how is he allowed to just refuse like that?

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Sorry to hear about your continuing difficulties ML. I hope this post helps in some small way.

My guess: it's only a public hearing. If it were a trial, a judge could order him to. I don't see how such a Stat Dec would help us anyway. The main issue is to determine the date MFS/Octaviar became insolvent and chase any remaining assets. Perhaps Bentley's were hoping to find a shortcut. If so, then good on em for trying.

This conduct by the likes of Mr Anderson's doesn't upset me anymore. Looks like he's pretty much well continuing to treat us investors as he always has. I worry for the Equititrust fund investors. I for one would never go near Equititrust. Check out their site http://www.equititrust.com.au/about-us

Look at the similarities to PIF. Not much older and born out of a law firm. Gold Coast based. Now look at the disclaimers. E.g.

"In Equititrust's history, no investor has ever failed to receive an income payment." - same happened with PIF .... until it imploded after which we can only get out at about 90% loss.

"Equititrust holds a $40m investment in the Fund, which is subordinated to the interests of investors." - for now, but how quickly and easily can this change, and what does 'subordinated' really mean. PIF had something along those lines too didn't it , the so called $50m support facility; look what happened to that. And who's $40m is it anyway? Some other investors/note holder/shareholder/creditor like our OCV's: NAB, Challenger, Note Holders (PTQ), OPI Pacific etc?

And now they've got Anderson too.

WOOOOHOOOOO!! Do my eyes deceive me?? The Brisbane Courier Mail has surfaced!!!

MFS co-founder Michael King `often left finer details to support staff' to work out
James McCullough From: The Courier-Mail June 18, 2010 1:53PM

MICHAEL King, the businessman that ran the now-collapsed MFS group, was a "big picture'' executive who left the finer details or a deal to his support staff to work out, according to the co-founder of the group Phil Adams.

Speaking publicly for the first time since the $2.4 billion collapse of MFS in late 2008, Mr Adams said the polo-playing king was entrepreneurial in organising big deals but seldom got involved in the detail.

Full article: http://www.couriermail.com.au/news/...taff-to-work-out/story-e6freon6-1225881397316

Interesting from the above article "The company collapsed in September 2007 "
How long has it taken for anyone to admit that? If this was the case MFS certainly was operating while insovent!!!??? Well before the $200million RBOS loan was secured. If this is correct you better pack them bags guys!!! And where does that leave all those responsible for making PIF investors pay back a loan which should never have been secured in the first place?

I sent WC a list of questions as follows yesterday of which they have declind to answer due to the fact that they are 'either the subject of current or pending litigation'.


Dear Caroline,
I would appreciate answers to the following questions.

At what time did any members of the current team become aware that former MFS directors had used monies borrowed from the RBOS on behalf of the PIF for purposes other than for the benefit of the PIF? Was this never detected when the current RE conducted due dilligence on the PIF?
On June 25th, 2008 Jenny Hutson was quoted in the media as saying the loans to PIf were inappropriate with zero value and the Fund had retained a top Sydney barrister on behalf of PIF investors. Did this top Sydney barrister and WC not discover the alleged fraud in relation to these loans even though the drawdown of this money did not meet the PIF's guidelines? I understand WC filed a statement of Claim against Octaviar in June 2008 indicating that WC knew the money was used fraudulently but allowed the PIF to continue to repay an alleged fraudulent loan resulting in irrepairable damage to the Fund. Prior to this, 333 Capital, Deloittes, Freehills, possibly McCullough Robertsons and Mintor Ellisons, Mike Korda had all been engaged at some time to examine and advise on the future of MFS/Octaviar and the PIF.
The PIF deal was signed off on by six OCV directors and
Freehills
Korda Mentha
Minter Ellison
McCullough Robertson
Jenny Hutson

Were none of these individuals and legal companies aware of the alleged fraud at this time?

Considering the former RE of the PIF authorised the draw down of the RBOS loan, why has our current RE not taken legal action against the former RE?

Was the handover to WC of the PIF ever considered a preference deal or uncommercial
transaction?
In view of the pending claim from XXXXXXX Pty Ltd against WC as RE of the PIF, is the PIF indemnified from possible compensation if WC is proved responsible for financial recompense to XXXXXXX?

Now that WC has provided directions will the NSX be notified of this pending XXXXXX claim if legal proceedings continue?


Starting to hot up now. I imagine these revelations will be crucial in our Class Action and ASIC's action. Seamisty

Octaviar founder sells cars to pay rent
SYDNEY, June 18 AAP
June 18 2010, 6:41PM
One of the founders of the failed Octaviar Ltd says he has sold his collection of cars to meet the rent and cover living expenses, a court has heard.

Octaviar is the Gold Coast-based property group previously known as MFS that collapsed in 2008 and owes about $2 billion to creditors.

It was founded by Phil Adams and Michael King.

Mr Adams, who now calls Dubai home, faced questions in the NSW Supreme Court on Friday from lawyers for liquidator Kate Barnet from Bentleys Corporate Recovery, which is trying to determine when Octaviar became insolvent.

Full article:: http://www.tradingroom.com.au/apps/...ished/2010/6/169/catf_100618_184100_6773.html

MFS founder 'had no inkling' of woes COURTS KATE LAHEY
June 19, 2010

In the fallout in early 2008, Mr Adams offered to buy the Dubai business for $1 on the condition it carried no debt. The chief financial officer, David Anderson, had agreed to reassign the debt so it was owed to Mr Adams instead, the court heard.

Mr Adams had then forgiven the debt he was suddenly owed and had used a Cayman Islands registered business, Agilis, owned by him and the MFS Dubai chief executive, Stuart Price, to hold the Dubai shares.

Full Story:http://www.theage.com.au/business/mfs-founder-had-no-inkling-of-woes-20100618-ymrz.html

seamisty said:

Interesting from the above article "The company collapsed in September 2007 "
How long has it taken for anyone to admit that? If this was the case MFS certainly was operating while insovent!!!??? Well before the $200million RBOS loan was secured. If this is correct you better pack them bags guys!!! And where does that leave all those responsible for making PIF investors pay back a loan which should never have been secured in the first place?
...

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It's interesting Seamisty, that citypac extended the FMF's loan facility with the cba on 1 September 2007 and deconsolidated the fund on 1 December 2007 ... I reckon the FMF was no more than a ponzi scheme back in late 2007 too.

All the scammers were jumping in lifeboats in late 2007 - the whole bloody lot of them.

mellifuous said:

It's interesting Seamisty, that citypac extended the FMF's loan facility with the cba on 1 September 2007 and deconsolidated the fund on 1 December 2007 ... I reckon the FMF was no more than a ponzi scheme back in late 2007 too.

All the scammers were jumping in lifeboats in late 2007 - the whole bloody lot of them.

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The sad truth is though that it was the investors and shareholders that went down with the ship.

It appears David Anderson was pretty good an handing out the assets for one dollar and forgiving debt. I wonder if Wellington Capital even paid that for the PIF at the end of the day? No one forgot or forgave the $200million PIF debt which shoudn't have been secured to start with.

Now we have to wait for the next installment.

Seamisty

IMLO the most worrying part of the ALF PIF offer is the 90% threshold. It has no chance of getting that. They should know that. So what is ALF PIF really up to? Aiming for a 30% holding? (Contrary to amendment 6.4 - how could anyone be confident they could prove in court that ALF PIF had a plan to waive the 90% condition) And what if ALF PIF gets 30% Jenny? Your WC helped our PIF to become such an attractive target. Should we wrap the fund up now?

Gold Coast Bulletin 18 Jun 2010

"Big Jim's colourful history gets airing

IF there was ever a good reason to think twice about a takeover offer, here is a line that should send warning bells.ALF PIF Finance, an obscure company controlled by Michael Pakula that uses former bankrupt Jim Byrnes as a consultant, has had to tone down the wording in its bidder's statement for Wellington Capital's Premium Income Fund.
"The combination will create a stronger merged entity, with greater scope to enhance shareholder value," touted the original statement to PIF's 11,000 unitholders.
The corporate watchdog has forced ALF PIF Finance to delete that statement in the amended copy, particularly in light of the obvious, that unitholders would be about $100 million worse off after the takeover bid. The most curious aspect of the amended documents was the space devoted to revealing the colourful past of 'Big Jim' Byrnes whose family stands to gain around 10 per cent of the $100 million windfall. ..."

High Court sitting in Brisbane today will hear the PTQ v Fortress appeal.

For a page and a half of details see http://www.hcourt.gov.au/registry/matters/21-06-10SP.pdf

It's sadly comforting that the Short Particulars quotes the phrase I've posted about: "Her Honour observed that when notice of the original charge was lodged, the definition of “secured money” would alert any prospective investor or creditor to the need for further inquiry as to what might be comprised by those liabilities."

Probably best that the Courier Mail stays away. We don't need more misinformation spread around.

According to Courier Mail last Friday "The company collapsed in September 2007 and accounting firm Deloitte appointed administrator [emphasis added] Kate Barnet of Bentley’s Corporate Receivers."

Ummm. Mr James McCullough! That's wrong wrong wrong. You couldn't have been more wrong. McMurdo effectively SACKED Deloitte. It was PTQ pushing for the removal of Deloitte and pushing for Bentley's to be appointed.

Perhaps I shouldn't be so harsh. After all according to the Fin Review PIF is "New Zealand based" and The Australian reported that 2000 PIF units selling at 45c was worth $35,000.

With such false reporting in the Press, it's little wonder that some might think that us PIF victims are just wingers.

'With such false reporting in the Press, it's little wonder that some might think that us PIF victims are just wingers.'

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Maybe thats all part of the plan Duped? On several occasions some of the journalists were given the opportunity to write a correction when it became obvious some aspects of their reporting was incorrect but they chose not to.
Also the media has had ample opportunity to follow up certain other aspects relating to newsworthy PIF investor related incidents but have chosen to ignore issues that could be seen as remotely casting shadows of doubt related to current management. Its almost like a silent code of conduct (not ethics), if you shut up we will put up, give you the next scoop etc. Cynical? You bet!!

Seamisty

Duped wrote in #5810 "Your WC helped our PIF to become such an attractive target." Exactly. It's another example of brash actions that have served us so badly.

Re: Octaviar MFS Premium Income Fund PIF

Duped said:

Seamisty. Perhaps this explains everything.

http://www.youtube.com/watch?v=Z86V_ICUCD4

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Duped please dont do that again as they had to get the doctor to me,i was in a straight jacket for a short time (brilliant my friend)i hope others saw the funny side.cheers flatback

In today's SMH, p2, an article on John DAVID, Chairman and CEO of "Emergent Capital; Dubai.
Detained May 13 this year for yet to be specified foul deeds objected to by United Emirates regulators.
Isn't one or some of ex MFS directors on the payroll of "Emergent Capital"?
Not a safe haven by way of a refuge.
Regards,

SUPREME AND DISTRICT COURTS BRISBANE

LAW LIST

Monday 21 June 2010


COMMERCIAL LIST

OCTAVIAR LIMITED
Justice Philip McMurdo
Court 16
Floor 3 10:00 AM
(Review)
OCTAVIAR ADMINISTRATION PTY LTD
Justice Philip McMurdo
Court 16
Floor 3 10:00 AM
(Review)

EQUITITRUST - another MFS ? looking like it

has anyone noticed these similiarities:-

1. same auditors as MFS had
2. David Kennedy ex CEO of MFS is now COO at Equititrust
3. David Anderson ex MFS CFO is now some strategic executive at Equititrust
4. Bank of Scotland was a big lender at MFS and ended up yielding the big stick - they are also a big Lender to Equititrust and market information is that they wnat to be paid back and have given extensions to Equititrust to do that -

are we facing a repeat of the MFS wipeout ???

Re: EQUITITRUST - another MFS ? looking like it

kostag said:

has anyone noticed these similiarities:-

1. same auditors as MFS had
2. David Kennedy ex CEO of MFS is now COO at Equititrust
3. David Anderson ex MFS CFO is now some strategic executive at Equititrust
4. Bank of Scotland was a big lender at MFS and ended up yielding the big stick - they are also a big Lender to Equititrust and market information is that they wnat to be paid back and have given extensions to Equititrust to do that -

are we facing a repeat of the MFS wipeout ???

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kostag I have not had the time to research Equititrust but this thread is a valuable tool which can be used to link names to other companies, etc. It comprehensibly covers people remotely and or directly connected to Wellington Capital Ltd, Octaviar, MFS and anything remotely involved with all three!! Please feel free to post any info which may help others to be aware and fully informed of past/present performance of links to names which should be monitored in relation to current or potential investors. Information is a powerfull tool if used honestly and correctly to expose wrong doing.

Seamisty

Please note, that the new Fund's Registry (Armstrong Registry Services),
does not allow you to check your Unit Balance online, as you could with
the previous Registry. This is not good enough!!

Also it is a conflict of interest that Wellington Capital is using this new Fund Registry, which has some affiliation with it. As the former name of our fund was called Armstrong Capital Limited.