Still some activity

June 23, 2015

I am still here, but, obviously, other priorities have taken hold.

A piece on “unregulated advisors”: FT: Advisors Under Fire.

Beware investments in Australia: The Telegraph: Lessons to learn from this list of dud investments

State of the Australian financial advice industry

April 22, 2015

Yep, lots of victims left out in the cold:

According to the Financial Ombudsman Service (FOS), more than $15 million worth of compensation applications should be paid to victims but the organisations have either gone belly up or their professional indemnity insurance doesn’t cover the payouts. It means hundreds, possibly thousands of customers are left out in the cold.

Hello? What about those who don’t even qualify to use the FOS?? You know, like overseas investors who invested in a what-turned-out-to-be-an-essentially-unregulated fund?


Aggrieved Investor #2111

April 14, 2015

Hi, my name is Barry and I’ve read many articles on this whole shambles,regarding the MPF,the way it was run and the thought that Mr Drake is out their living very comfortably on some of MY money. We are only small investors in terms of capital put into this scheme,but for us the loss of 20,000 sterling has been a major blow (probably pocket money to Mr Drake). I DO NOT recall being advised that the scheme was non regulated,this would possibly have been a warning sign, but again was advised that this investment was low risk. What I find very hard now to understand is that with all the legal action going on, administrators doing this and that, running up bills that mean, what money is left is very fast running out and the poor investor,and there are many of us will receive no return. Keep your money under the Mattress because for my wife and I any gain we had from other investments have been WIPED OUT and we now have a big hole in our retirement savings,thank you L&M Australia!!

Aggrieved Investor #4520

April 14, 2015

Was sold a UK SIPP via Brian Smith IFA from Acuma, Abu Dhabi in Oct 2010. Hornbuckle were the Trustees of this Skandia collective redemption bond. Lost 50000 sterling with this LM PMF. Was told this was low risk investment and was never asked about the annual rollover by the IFA. He disappeared late in 2015.

Drake and co hit with claim

April 14, 2015

From the Australian, and it seems that BDO and KoraMentha are cooperating:

Receivers at KordaMentha to another fund previously managed by LM Investment Management, the Managed Performance Fund, have also been added to the legal action.

But with MPF having no cash left against which to claim, BDO is seeking control of MPF’s remaining assets so it can recoup its claimed $20m when future assets are sold.

BDO’s claim relates to some of the proceeds of litigation launched after the group’s collapse being paid to MPF rather than to the First Mortgage Income Fund, which should have had priority given the terms of its charge.

MPF had a second-ranking charge.

Not good news for MPF of course. Further comment welcome.

Yeah, pretty livid.

January 5, 2015

Thanks Australian Financial System, you toothless pony:

“We understand the dis­appointment of investors who lost money on their investments. However, in this particular case, specific issues are assessed appropriately through the official regulatory and court processes as appropriate, while any systemic policy issues have been considered through our Financial System Inquiry,” Senator Cormann said.

So, what would have to happen for criminal charges to be brought up?

An anonymous Australian investor is quoted as saying:

“While I personally hold no hope of any kind of recompense from the Australian government, I had hoped that criminal proceedings would be taken against Drake and his cohorts,” she said.

“Considering that Drake has apparently walked away with $26m in the form of a ‘loan’ to himself from (another fund) the Managed Performance Fund, the possibility of only having to pay a fine of $200,000 is peanuts to him.

“What kind of a message is ASIC sending? It is one of encouragement to carry on, as the only punishment they will ever receive is a slap on the hand!”

The ultimate side-step:

“ASIC can confirm that we are not pursuing a criminal investigation at this time but as usual, would obviously reassess if other evidence became available,” a spokesman for ASIC said.


November 21, 2014

Quite interesting. More comment later.

New article focuses on victims

November 10, 2014

A welcome addition to the ongoing saga.

I just had a query about this bit:

More than 500 investors have contacted each other across international borders to form victim groups, share knowledge and build a legal case – which is being backed by lawyers from Slater & Gordon in Australia.They have spent the past year and eight months researching the company and the fund, how it operated and how they were all lured into it.

Wait, I thought Slater & Gordon said they weren’t going to pursue this any further?

“Safe as Houses?” event

October 31, 2014

Okay, this may be one of the more important posts, so listen up:

You got questions? What, exactly, happened? Who is to blame? The key question that I’ve been trying to figure out: What can victims do? Seems like there’s some someones who can help answer them.

While this website and others have done their best to help, the reality is that we’re not experts and the thing is complicated, and in many ways the scam depends upon being complicated in order to thrive. So I am delighted to learn that The British Chamber of Commerce Thailand has arranged for 2 speakers who apparently are well known in the Bangkok area, where many of the victims seem to be concentrated. I’m not going to be able to attend this event (details below) due to my existing commitments, but if I could, I’d be there in a heartbeat.

Paul Gambles, who is the founding partner of financial consultancy MBMG Group, has been warning investors of the risks posed by LM and similar funds since 2008. So if he was sounding the alarm bells, how come others recommended it as “low-risk”? And Andrew Batt, who is the senior editor of Property Guru Magazine, has also written extensively about property investment scheme failures. They both are going to take questions from victims, bystanders, and interested parties alike. They both insist that they have no axes to grind, they just want to pass on their knowledge to anyone who may benefit, including investment advisors.

Please see below, click here to book.


BCCT – MBMG Insights


As safe as houses?

In the last few years more investors have fallen prey to questionable schemes and outright scams built around such supposedly safe assets as property, legal services, life insurances and physical assets such as forestry. In many cases the structure of the offering or the distribution behind it were major contributory factors to investors substantially losing their investments.

Join Andrew John Batt, International Group Editor of Property Guru Group and Paul Gambles, co-founder of MBMG Group and Managing Director of SEC licensed financial advisory practice MBMG Investment Advisory as they explain the importance of due diligence, why very high profile schemes have really failed and what victims can be doing right now, and why sometimes seemingly secure and familiar investments can actually be as dangerous as houses.

Date: Tuesday, 11 November 2014

Time: 6.30 – 8.30 pm

Venue: Study Room, 2nd Floor, Hilton Sukhumvit Bangkok, Sukhumvit Soi 24 (Phrom Phong BTS Station Exit 4)

Cost: THB 850 net for BCCT members & THB 1,100 net for non-members including cocktail food, soft drinks, beer and wine.

Sponsored by:

MBMG Group

Posts to come tomorrow

October 29, 2014

For a variety of reasons I have been somewhat MIA lately. However, tonight I checked my mail and found quite a few messages intended for action. So, if you are a reader of this blog and emailed me, I will reply shortly. Thanks for understanding.