Subject:Aug 2011 emails to MP Paul Fletcher

From:Geronimo Bob <gbob37@gmail.com>

Date:8/24/2011 1:00 AM
To:"Graham, Casey" <C.Graham@kennedys-law.com.au>, "Giles, Rebekah" <r.giles@kennedys-
law.com.au>
---------- Forwarded message ----------
From: Geronimo Bob <gbob37@gmail.com>
Date: Fri, Aug 19, 2011 at 5:22 PM
Subject: trio capital inquiry
To: "McCulloch, David (P. Fletcher, MP)" <David.McCulloch@aph.gov.au>, "Fletcher, Paul (MP)"
<Paul.Fletcher.MP@aph.gov.au>
Dear Mr. Fletcher,
I have brief comments both in regards to your unanswered quesuons in wriung as well as remarks
made by ASIC chairman Medcra regarding the status of the Trio invesugauon. I believe you and
your commiuee should make independent inquiry as the various asseruons made by ASIC which in
my opinion highly quesuonable, including their recent published info on frozen funds (which is just
plain wrong. (one frozen hedge fund).
For the conunued condence of Australia's nancial markets and its regulators, tranparacy, fairness
and the rule of law and especially all those who have had their savings and lives advesrsely
aected, ASIC needs to answer the quesuons in wriung you have submiued. Specically, the extent
to which investors suered losses due to criminal/fraudulent acuviues as compared to negligence
or excepuonal market condiuons, inability on the part of both regulators and
administrators/liquidators to understand much less unwind and liquidate complex nancial
contracts. Judge Palmers speculauon of fraud in his decision winding up ve trio managed
investment funds and Minister Shorten's decision to compensate superannuauon investors $55
million has created an inaccurate belief in the public consciousness (an oshore evil mastermind
named Jack Flader who for some reason has not been charged, extraduded or subject to any legal
acuon whatso ever!) making it incredibly dimcult to challenge the lack of evidence or the many
inconsistancies much less the considerauon of Trio's failure caused by more mundane
factors.(From which investors potenually would be able to seek damages from.) It is inconceivable
that the 2.5-year sentence received by Shawn Richard can be adequate if he indeed parucipated in
the stealing of $180M! You will note that the same judge sentenced an 80 year old man to six years
for stealing $4M just today!
Aug2011 emails to MP Paul Fletcher
of 6 2/ 13/ 2014 1:01 PM
Investors have unquesuonably suered greatly because of Trio Capital; many of these investors are
being taken advantage of again by greedy class acuon lawyers and advisers seeking to pursue legal
acuon for which there is no factual basis and no possibility of success.
I hope that you and that PJC will hold all parues responsible for this mauer to account.
Previously Tony DAloisio and now Greg Medcra have assured you and the PJC that the Trio
invesugauon was a high priority and ongoing mauer. At the most recent hearings he had assured
the commiuee that he was personally looking into the mauer. While your quesuons and the PJC
inquiry into Trio has resulted in a number of publicized acuons, this is clearly a case of too liule too
late and in my opinion soley to placate the PJC and yourself.
Relevantly;
Shawn Richard Invesgaon
1. For all intents and purposes ASIC's invesugauons into Trio Capital were completed Dec 2010 aer
reaching a plea agreement with Shawn Richards. The enure Shawn Richard Invesugauon team were
awarded Australia Day medallions Feb 2011 in recogniuon for their eorts. Historically ASIC had
given medallions for completed invesugauons not those sull ongoing. Shortly aer the two lead
invesugators Joe Kouper and James Hogan le ASIC for posiuons in private sector. The invesugauon
is currently being handled by an ASIC lawyer with liule invesugauon or nancial product
experience. She is essenually a beurocrat. She is being supported by an accountant who has been
with ASIC for only a short ume.
Mr. Richard's lawyer, Costa Green (who curiously had previously advised Phillip York and the
investments in the ARP Growth Fund) negouated the deal which included the enforcible
undertaking published Dec 3, 2010 banning Mr. Richard from working in nancial services for life.
ASIC has not explained the reasons it accepted an enforceable undertaking from Mr. Richard as
ASIC policy and publicauons clearly state that ASIC would not accept an EU in circumstances of
deliberate conduct or fraud. To my knowledge ASIC has never accepted an EU in comparable
circumstances. In addiuon there apeared to be very liule benet from Mr. Richard's undertaking as
his convicuons would preclude him from work in nancial services in the future anyway.
Aug2011 emails to MP Paul Fletcher
of 6 2/ 13/ 2014 1:01 PM
Links to informauon ASIC was acung on when they iniually shut down Trio
hup://www.smh.com.au/business/trio-from-the-boiler-room-into-the-re-20100101-llq3.html
hup://www.smh.com.au/business/blogger-who-blew-the-whistle-on-hedge-fund-20100101-
llq5.html
ARP Invesugauon
2. ASIC's invesugauon into the ARP growth fund was a half assed eort from the start. They were
clearly going through the mouons to appease demands for acuon in response to Stuart Washington
and John Hempton's sensauonal ARP fraud accusauons published in numerous arucles and online
between Jan-March 2010. Stuart Washington and John Hempton provided numerous misleading
documents to the administrators of Trio and met with Partners of PPB on numerous occasions
starung from Dec 2009. PPB has admiued that informauon published in the Sydney Morning Herald
and auributed to partners of PPB were actually provided to them by Stuart Washington (SMH
reporter) and John Hempton. The ASIC, ARP invesugauon was opened only AFTER these media
reports were published; they were never pursued seriously by ASIC. The invesugauon was given to
Ross Blowers; while an experienced invesugator, he did not have any understanding or experience
of structured products, hedge funds or derivauves AT ALL. He was also being made redundant by
the cost cumng at ASIC.
The invesugauon into the ARP growth fund was given to someone without the experuse and
knowledge and ALSO someone who was halfway out of ASIC anyway! You may be interested that
your queries into ARP caused a mad urry of acuvity and ulumately delaying Mr. Blowers departure
by two weeks.
ARP Fraud links
hup://www.smh.com.au/business/asic-must-move-quickly-on-trio-fund-20100215-o2yu.html
hup://brontecapital.blogspot.com/2010/03/my-upper-on-astarra.html
Aug2011 emails to MP Paul Fletcher
of 6 2/ 13/ 2014 1:01 PM
The majority of hedge funds were frozen in late 2008-2009!
3. ASIC's claim that there was only one frozen hedge fund with .6 B in 2008 is wrong. I have
auached a PDF document with various documents I have compiled.
ASIC apears to have only included stausucs for funds that have applied for hardship relief rather
than a complete list of funds with altered redempuon condiuons. In 2008/2009 the MAJORITY of
fund of hedge funds were frozen. While ASIC provided hardship relief to the Macquarie Equinox
Asian 2 Trust it should have known that all 11 Equinox funds were frozen. ASIC granted fund
managers Cerutude (HFA) and Everest Financial Group relief from the liquidity requirements of the
Corps. Act but for some reason NOT included on their frozen funds list. Please note that Cerutude/
HFA, BT, Select, Goldman, DB and many other hedge fund managers froze redempuons in late
2008-2009.
Netwealth Frozen Funds link
hups://www.netwealth.com.au/librarymanager/libs/41/netwealth_List_of_suspended_funds.pdf
The fact that only one hedge fund applied for hardship relief does not mean it was the only hedge
fund frozen fund. ASICs stausuc on HFs does not accurately characterize the excepuonal
circumstances confronted by hedge funds and funds of hedge funds nor does it show that the
majority of hedge funds have subsequently seen liquidity improve far greater than the other
groups named in ASICs frozen funds publicauon. That there was only one hardship applicauon
would in my opinion demonstrate that investors in hedge fund products understood the risks
involved with hedge funds and alternauves to be able to wait out the unprecedented market
turmoil of the GFC as opposed to investors in mortgage funds who perhaps depended on the
dividends/ income for short-term expenditures. It also demonstrates that many funds with similar
investments as Trio/ ARP have been able to work out illiquid posiuons and open their funds up to
normal redempuons.
What invesgaons were actually undertaken?
4. I had previously asked that you read Judge Palmer's April 16 decision winding up the Trio funds.
Aug2011 emails to MP Paul Fletcher
of 6 2/ 13/ 2014 1:01 PM
Each of the rst four bullet points listed in Para 36 are objecuvely wrong! Please ask ASIC or
Treasury to provide you the leuer of sent by Dr. Ken Henry to ASIC Chairman Tony DAloisio in Sep
2009. Google Paul Richard Bell or see a prior ASIC release
hup://www.asic.gov.au/asic/asic.nsf/byheadline
/01%2F361+ASIC+obtains+court+order+against+cold+caller?opendocument
(this is NOT the same Richard Bell that managed the Huntleigh Investment Fund). Check with the
FSA in the UK or the SEC about Pacic Conunental UK and World Financial Group in NY(previously
called Pacic Conunental Securiues in 1999)
Look up Atlanus Capital Markets (even beuer ask ASIC for the administrauon reports from Swiss
Financial or the brokerage and trade blouers)
The audits for both EMA and Explorauon Fund (previously Huntliegh Investment Fund) were
completed or nearly completed. EMAs audit report was completed and nanlized but for the
auditors outstanding fees!
PPB Expense reports links
hup://www.ppbadvisory.com/creditor-informauon/v/175/trio-capital-formerly-known-as-astarra-
capital
Expense reports
hup://www.ppbadvisory.com/uploads/i175-Amdavit-of-Neil-Georey-Singleton.pdf
You should review each tab of the les labeled i175. I am sure aggrieved investors will be outraged
by the fact that it appears PPBs invesugauons were in large part based on the incorrect informauon
of John Hempton and reporters Duncan Hughes and Stuart Washington and then charged to the
funds by PPB as conducung invesugauon fees.
My own precarious legal circumstances do not allow for me to openly raise my concerns in a formal
submission to your comiuee or alternauvely to you personally. I hope that you conunue your
invesugauons and make all those responsible for this mauer accountable.
Aug2011 emails to MP Paul Fletcher
of 6 2/ 13/ 2014 1:01 PM
Bob
Attachments:
frozenfunsaph.pdf 2.2 MB
Aug2011 emails to MP Paul Fletcher
of 6 2/ 13/ 2014 1:01 PM