After trying for four years to get his clients cash out of LM Tokyo based financial adviser Martin Terpilowski watched in horror, but not surprise, as the funds crashed and went into receivership.
But the bitterest pill to swallow was being told by LM salesman Martin Vernier:’For once in your life take responsibility for your actions’
Vernier was talking about Terpilowski’s commissions saying how he had previously been boasting about them. But there was no mention of how Terpilowksi had been tried to recover his clients fund for years from the LM (Mis)Managed Performance Fund. Not surprisingly Terpilowski saw red.
Intro by Lindell Lucy at www.rapeofhongkong.com
LM sales manager, Martin Venier, constantly flew around the globe persuading advisers to put more of their clients’ money into the Managed Performance Fund. Meanwhile, Martyn Terpilowski was desperately trying to get his clients’ money out.
When LM went into voluntary administration on March 19, 2013, Terpilowski fired an email to Venier, saying, “You all have blood on your hands”.
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| Vernier |
Venier responded by accusing Terpilowski of being one of “those brokers” who were greedy and unethical. He said, “For once in your life, please take responsibility for your actions.” When Terpilowski angrily pointed out that Venier’s accusations were bizarre, hypocritical, and unfounded, Venier threatened to call the Hong Kong police.
The next day, the Sydney Morning Herald printed a scathing news article, which reported that half of LM was controlled by a company registered in Hong Kong, and Drake had used this company to make a $16 million dollar loan to himself. Terpilowski forwarded the news article to Venier and said,
“I never saw the HK police today and it would be funny if they arrested me before you? Are u still in HK? Or have u run away…?”
Sources say that Venier is no longer responding to emails. He seems to have disappeared.
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Below is an announcement sent to advisers on the day LM collapsed. It is followed by a heated exchange of words between Martyn Terpilowski and Martin Venier.
LM’s Announcement
From: LM Investment Management Ltd [mail@LMaustralia.com]
Sent: Tuesday, March 19, 2013 6:30 PM
To: Martyn Terpilowski
Subject: LM Announcement
www.LMaustralia.com
Financial Adviser/Intermediary Information Only
19 March 2013 Dear Martyn, The information contained within this letter is all that is currently available and able to be provided by LM Investment Management Ltd (LMIM). Our LM offices and regional managers will have no further or additional information available to you at this time. All queries for additional information should be forwarded to mail@LMaustralia.com. Further information will be forthcoming, and we will send it to you as soon as it becomes available. Announcement
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| LM boss Peter Drake |
The Board of LM Investment Management Ltd (Administrator Appointed) (LMIM, the company) advises that after full consideration of its obligations as a company and its duties to ensure it acts in the best interests of investors in the LM Funds, it is placing the Responsible Entity, LMIM, into voluntary administration. This is not liquidation or receivership, and neither LMIM nor any of the Funds is in liquidation or receivership. Events over the past couple of weeks, however, have meant that the Company and the funds are in imminent jeopardy of being unable to meet creditor obligations, and hence the appointment. Voluntary Administration is as a proactive approach by the Board to officially bring in independent financial advice across the company and the Funds. This step is believed to be in the best interests of protecting the Funds and maximising returns for investors, and prevent LMIM company cash flow issues going forward. Voluntary Administration has no effect on the structure of the Funds. The Voluntary Administrator assumes the responsibility for the decision making in the Responsible Entity role, however the funds will continue to be managed in accordance with their governing documents and the applicable Corporations Act and Trustee Law. The Voluntary Administrators will be working with senior LM investment personnel to optimise investor outcomes. In addition, the Voluntary Administrator must comply fully with its own requirements under the Corporations Act, in its administration role. All licence conditions of the Responsible Entity have been and continue to be met, and there has been no breach in this regard. The financial requirements (Net Tangible Assets) of the Responsible Entity licence remain in order. The Funds are unit trusts, the assets of which are separate and segregated from those of LMIM. The process
Within the next couple of days you will receive a separate communication from the Voluntary Administrator. It will provide more detail around the process of the Voluntary Administration. The ultimate aim of the Voluntary Administrator is to manage and resolve a solution over a period of time, yet to be worked out and about which you will receive communication. Why make this appointment?
Whilst the creditor issues rest with LMIM and are quarantined from the Funds, the Funds need to be shielded from any ensuing reputational damage. The Board considers that the appointment of a specialist bringing with it, as it does, expertise and independence will afford the best protection for the Funds in this regard. What to expect over the next couple of weeks
There is an enormous amount of work to be undertaken this week to ensure the optimal results from this appointment for all the investors in all of the LM Funds. Many of you will have questions and those questions will be answered. Please bear with us though, as our response may not be as prompt as usual, due to the expected initial high volume of queries. The Board is earnest in this appointment as the best means of providing arms-length, commerciality and financial analysis to the solutions Further information will be provided, as stated above and below. All LM Funds are now closed pending a full independent analysis by the Voluntary Administrato
Regular Fund updates will continue to be provided via the LM website, www.LMaustralia.com. LM Australian Structured Product Fund
It will be business as usual for this fund with no financial impact expected as a result of the Voluntary Administrator. LM and the Voluntary Administrator will communicate directly with Deutsche Bank, the holder and underwriter of the notes in each of the closed end products within the Fund. Communication to investors and advisors as required will continue. Any income distributions and the maturity dates of each of the offers within the Fund continue uninterrupted. A full report will be provided to you following the Voluntary Administrator’s analysis. LM First Mortgage Income Fund, LM Currency Protected Australian Income Fund and LM Institutional Currency Protected Australian Income Fund
We do not expect any change for investors in these Funds. The manager will continue with the orderly sale of all assets for eventual wind up of the Fund. Regular periodic capital distributions for investors have commenced, and will continue. Regular communication will continue. The appointment of the Voluntary Administrator brings with it independent, arms-length, specialist financial expertise. LM Australian Income Fund
We expect this Fund will continue to be managed as it has been, according to its main documents. The Voluntary Administrator is conducting a full analysis in conjunction with senior investment personnel from LM and on its completion a report will be provided for you. LM Managed Performance Fund
We expect this Fund will continue to be managed as it has been, according to its main documents. The Voluntary Administrator is conducting a full analysis in conjunction with senior investment personnel from LM, and on its completion a report will be provided for you. The appointment of the Voluntary Administrator brings with it independent, arms-length, specialist financial expertise. LM Cash Performance Fund
We expect this Fund will continue to be managed as it has been, according to its main documents. The Voluntary Administrator will release a report on the Fund as soon as possible. In Conclusion
This decision has been well considered in consultation with independent specialist accounting and solvency practitioners and with independent legal counsel. LMIM cannot run a risk of being unable to pay its creditors, and this is the process being established to work out the issues. LM is acting to maximise outcomes for all investors. Yours Sincerley, The Directors LM Investment Management Ltd Download a PDF version of this update The LM products are solely for distribution via financial advisers and intermediaries. LM requests investors consult a financial adviser and read and consider the relevant disclosure document before making any decisions on their investment. The LM Funds are not bank deposits. This communication is general information on the LM funds issued by LM Investment Management Ltd. privacy | contact us © LM Investment Management Ltd 2011 Responsible Entity & AFSL No. 220281 ABN 68 077 208 461
From: Martyn Terpilowski
Sent: 19 March 2013 18:40
To: ’Martin Venier’
Subject: FW: LM Announcement
So now all them poor b@stards who carried on placing money with you after being deceived are in trouble… plus my clients who have been trying to get their money out. This is a mis-managed mess and should have stopped taking money from people years ago. You all have blood on your hands for that as do all the disgusting brokers who took 9% and ignored all the obvious signs that this was going this way.
How predictable was this? I can’t believe I have been the only one knowing this was coming for the last 4 yrs…
Unbelievable.
Martyn
From: Martin Venier [mvenier@lmaustralia.com]
Sent: Tuesday, March 19, 2013 6:45 PM
To: ’Martyn Terpilowski’
Subject: RE: LM Announcement
Dear Martyn, For once in your life, please take responsibility for your actions. You boasted to me about how [much you made] in commissions one year. I hope you are happy with the successful sales you have made to earn your commission. You are one of those brokers I am afraid and I feel sorry for your clients. Please do not email again. Kind regards, Martin
Martin Venier Regional Manager International | Treasury T +852 2501 0262 | D +61 2 8268 0100| F +852 2530 1076 | E mvenier@lmaustralia.com A 16/F Aon China Building 29 Queens Road Central, Central, Hong Kong S.A.R. | P 16/F Aon China Building 29 Queens Road, Central, Hong Kong S.A.R.
www.LMaustralia.com
From: Martyn Terpilowski
Sent: 19 March 2013 18:55
To: ’Martin Venier’
Subject: RE: LM Announcement
Yes u tosser – I made good sales being honest and my clients like me, I just made a mistake getting involved with LM, but for 4 yrs have been desperately trying to get my clients money out as I knew this was coming and I have told u that many times.– I could have carried on selling this sh1t and made a fortune but I did not as I knew and I was right and u are an absolute shyster for writing this and I hope to see you very very soon. You have continued to sell this knowing the problems and paying high commission, you should go to prison. I certainly hope I see you out and about this weekend, you disgusting little person.
Rgds
Martyn
Martin Venier
From: Martin Venier [mvenier@lmaustralia.com]
Sent: Tuesday, March 19, 2013 7:06 PM
To: ’Martyn Terpilowski’
Subject: RE: LM Announcement
Dear Martyn, your threatening email and the others you sent have been forwarded to head office and we will contact the HK police tomorrow as a result. Please do not communicate with me again. Kind regards, Martin
Martin Venier Regional Manager International | Treasury T +852 2501 0262 | D +61 2 8268 0100| F +852 2530 1076 | E mvenier@lmaustralia.com A 16/F Aon China Building 29 Queens Road Central, Central, Hong Kong S.A.R. | P 16/F Aon China Building 29 Queens Road, Central, Hong Kong S.A.R. www.LMaustralia.com
From: Martyn Terpilowski
Sent: 19 March 2013 22:59
To: ’Martin Venier’
Cc: ’Debbie Leung’; ‘Peter Drake’; ‘[Martyn’s Colleague]‘
Subject: RE: LM Announcement
Martin
You can send your emails to your Head Office and the Hong Kong Police – that is fine. I have not threatened physical violence but for sure I would love to see you and look you straight in the eye. The only physical threat of violence ever in our relationship was offered by you at your office, when you stood up and smashed your fists on the table asking how I dare come to your office and question your integrity… I am sure Debbie would concur as she was there. You soon sat down when you realised that you are 4 foot tall and I am not. I was completely right to question your integrity as I always knew I was.
Your comment below regarding ‘taking responsibility for my own actions’ is quite ridiculous Martin and I am happy to take my LM dossier to any regulator in the world. I have lots of evidence to prove that for over 4yrs I have never invested with LM and questioned everything about LM. I have taken this up with all the bond providers and constantly suggested that they do not deal with you due to the constant lies and deceit. I did very well in the good years for the markets but not with products paying 9% commission in bonds. When I did all my LM, it paid 3% Martin and people could get there money out again. You can try to blame me as much as you want but I have a ridiculous amount of evidence to prove that I have questioned you for years and always knew this would happen. Throughout this time I did no LM business despite the ridiculous rewards on offer. During this time you constantly travelled the region selling more and more of this products which was basically gated to unsuspecting clients who were never told the truth. You pass the blame to the brokers (you know I did none and that can be proved easily), but it was obvious if the truth was known, no one would ever buy this. I have documented this time and time again and have a very good dossier on LM. I have had your number since day 1 and you know it and saying that I was in on it absolutely pathetic and juvenile. I honestly believe you should go to prison as money taken in the last few years has been taken through false pretences, all the time knowing that you were in trouble. The brokers who sold it should also be in serious trouble as there was no way they did not know the stupid risks they were taking with client’s money. You like your boss Peter Drake have always acted like a megalomaniac, passing off your obscene commission levels and the nonsensical nature of everything LM, as me not understanding Australia. Well Martin I did and am clearly far cleverer than you are as I predicted this in every meeting that we ever had and collected as much evidence as possible, so no Martin, I am gutted for my clients but always knew this was coming and they know I have done everything to help them. In another respect at least this stops your lies and all your dodgy brokers will finally stop making money from this sham as it is basically theft and I hope you have to answer for it instead of writing ridiculous emails like the one [above]. It is theft as I have told you many times – it was sold without the facts and clients were lied to repeatedly and it was encouraged by you and your superiors. I can take responsibility as do not have such blood on my hands as you clearly do. There is a very good email trail to prove this Martin, I am sure you know that
Please forward this email to your head office, your lawyers, the regulator, the Hong Kong police or anyone else… I hope to see you in a courtroom somewhere soon mate…
Sleep well.
Martyn
From Martyn Terpilowski the day the above article was published in the Sydney Morning Herald
From: Martyn Terpilowski
Sent: 20 March 2013 23:20
To: ’Martin Venier’
Cc: ’Debbie Leung’; ‘Peter Drake’; ‘[Martyn’s Colleague]‘
Subject: RE: LM Announcement
http://www.smh.com.au/business/when-drakes-empire-came-crumbling-down-20130320-2geq9.html?
Martin – u little scumbag… can I use the word scumbag..? Is that threatening to u? because u are a scumbag aren’t u? I never saw the HK police today and it would be funny if they arrested me before you? Are u still in HK? Or have u run away u evil little thief? U must hate me as I was right about everything and whatever u say that is not true, I can prove it all. I could have written this article couldn’t I? I will write the one tomorrow and your name will be all over it, I assure u..….. Do not worry I have the proof – before u call the lawyers in…. U have probably done a runner already..
Talk soon my friend.
Martyn
Does anybody see a pattern here? These lying, thieving pieces of shit steal peoples money with their lies and spin, then when it all goes pear shaped and people start getting angry, they threaten to run to the police like they are some victim.
This Martin Venier is just another Noyes or Goudie with a better tailor and better office. LM sounds not much better than a boiler room. Just another bunch of greedy crooks.
Yes we are seeing a lot more of these scumbags like Drake and Venier. Lucky I never invested in LM as I would have hunted these pricks down. In this world there are ways to pay back and just like Noyes and Goudie they will get there justice soon. They think theyre above the law and can do what they like by not paying tax & ripping off good folk — there dues will come. They are the dregs of society and Thailand needs to wake up on this lot.