KICKING THE LM CAN DOWN THE ROAD!
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| Heather McLeish |
A client was able to redeem a large investment from LM but it still took two years and he had a senior position at a well known investment bank and there were threats to sue.
In continuing revelations by Martin Terpilowski, whose client it was, replies from senior executives at LM, the emails to-ing and fro-ing between Terilowski and LM executives get excruciatingly painful as LM staff say that there is no freeze on redemptions – they are just not paying them out or they have been delayed, of they are being paid at a lower rate than normal.
But then comes this admission when agreeing to pay the investment banker: “[Client 2’s] payment will be one of the first to be released once our funds management committee determines that the assets are protected and that we can apply funds to redemption payments again.”
Oh so redemptions were stopped then!
The woman handling Terpilowski’s cherished banking client was Heather McLeish. She works out of Tokyo speaks Japanese fluently and has featured many times on the ‘Cool Japan’ TV programme. At the time she was working for GK Helm in Tokyo. She is now with another company – but not surprisingly on her biography does not mention that she used to agent for LM!.
Quite clearly LM are lying their heads off and again there is that claim that the LM Managed Performance Fund was for ‘sophisticated investors only’.
Their excuses for their cash flow problems also do not stand appear to stand up. Apologies but reading this is akin to listening to nails being scraped on a blackboard.
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| LM Supremo Peter Drake |
From: Shauna Larkin <slarkin@lmaustralia.com>
To: [Client 2]
Sent: Fri Mar 05 12:45:24 2010
Subject: LM Managed Performance Fund redemption – [#########]
Hi [Client 2],
I know the fact that we have been delaying withdrawals in the fund has been frustrating to say the least.
The end of quarter 1 is fast approaching. We are finalising a written update at the moment and it will be available next week. It will cover time horizons for payments and the things we are doing to meet them.
You will receive a copy of this update (as will your financial adviser) and I will discuss via phone the impact this will have on you then. I will give you a call next week.
I look forward to speaking with you then.
Kind regards
Shauna
Shauna Larkin
Client Relations – Treasury Services
LM Investment Management Ltd
Client 2
From: [Client 2]
Date: Fri, 5 Mar 2010 19:00:18 +0800
To: [Martyn’s Colleague]
Subject: Fw: LM Managed Performance Fund redemption – [#########]
Fyi
[See Larkin’s message.]
Martyn’s Colleague
From: [Martyn’s Colleague]
Sent: Friday, March 05, 2010 8:26 PM
To: Martyn Terpilowski
Subject: Fw: LM Managed Performance Fund redemption – [#########]
[Also see Larkin’s message.]
Sent from my BlackBerry® wireless device
Martyn Terpilowski
From: Martyn Terpilowski
Sent: 06 March 2010 14:40
To: [Martyn’s Colleague]
Subject: RE: LM Managed Performance Fund redemption – [#########]
Joke mate… I have an issue with this also…
MT
July 2010
Heather McLeish
—–Original Message—–
From: “Heather C. McLeish” <hcmcleish@lmaustralia.com>
Date: Tue, 13 Jul 2010 11:39:15
To: [Martyn’s Colleague]
Subject: Are you back in Japan?
I wanted to give you an update on [Client 2’s] redemption.
Please let me know where its best to reach you.
Cheers,
Heather
Martyn’s Colleague
—–Original Message—–
From:[Martyn’s Colleague]
Sent: Tuesday, 13 July 2010 11:05 AM
To: Heather C. McLeish
Subject: Re: Are you back in Japan?
I am not in Japan can you e mail as I am speaking to him today.
Sent from my BlackBerry(r) wireless device
Heather McLeish
—–Original Message—–
From: Heather C. McLeish [hcmcleish@lmaustralia.com]
Sent: 13 July 2010 03:28
To: [Martyn’s Colleague]
Subject: RE: Are you back in Japan?
No problem.
I spoke to the directors this morning and it looks like we will be paying [Client 2] out in September. I am not sure what you would like to tell him as you are no doubt as hesitant as I to give dates when they could change, so I leave that up to you. Good news anyway!
All the best,
Heather
Martyn’s Colleague
—–Original Message—–
From: [Martyn’s Colleague]
Sent: Tuesday, 13 July 2010 11:30 AM
To: Heather C. McLeish
Subject: RE: Are you back in Japan?
That would be for the whole amount and would take place after you have paid the 29 in the line before him.
[Martyn’s Colleague]
Heather McLeish
—–Original Message—–
From: Heather C. McLeish [hcmcleish@lmaustralia.com]
Sent: 13 July 2010 03:31
To: [Martyn’s Colleague]
Subject: RE: Are you back in Japan?
That would be the whole amount yes and that timeline takes the other redemptions into account, yes.
October 2010
Martyn’s Colleague
—–Original Message—–
From: [Martyn’s Colleague]
Sent: Thursday, 7 October 2010 2:26 PM
To: Heather C. McLeish
Subject: RE: Are you back in Japan?
Heather
I have heard nothing from you on [Client 2’s] redemption.
Can you update be by return please?
Thank you.
[Martyn’s Colleague]
Heather McLeish
—–Original Message—–
From: Heather C. McLeish [hcmcleish@lmaustralia.com]
Sent: 08 October 2010 06:53
To: ‘[Martyn’s Colleague]
Subject: RE: Are you back in Japan?
Hello [Martyn’s Colleague],
Apologies for the delay. I was just able to get an update on this client’s account.
No good news I am afraid. The currency movements have not been in LM’s favour requiring funds to go to the margin account making the September time frame to pay out your client null and void.
I realize how frustrating this is, honestly I do, but it is still a waiting game. His redemption is very near the top of the queue, so his payout should be within the next couple of months.
I am sorry to have nothing better to tell you.
Best regards,
Heather
Martyn’s Colleague
—–Original Message—–
From: [Martyn’s Colleague]
Sent: Friday, 8 October 2010 3:56 PM
To: Heather C. McLeish
Subject: RE: Are you back in Japan?
Heather
You virtually guaranteed that it would be in September and I re assured the client accordingly and prevented him pursuing legal action against you.
Please confirm the exact position in redemption queue and when exactly he will be redeemed.
I expect he will now launch a legal case against LM.
Is his coupon still being paid?
[Martyn’s Colleague]
Heather McLeish
—–Original Message—–
From: Heather C. McLeish [hcmcleish@lmaustralia.com]
Sent: 08 October 2010 07:58
To: [Martyn’s Colleague]
Subject: RE: Are you back in Japan?
[Martyn’s Colleague],
I was assured that that was the case at the time I told you.
As I mentioned before it is impossible to confirm the exact redemption date.
It is his right to seek legal action, however the PDS [Product Disclosure Statement] is clear on this.
Yes, he is still continuing to earn the same interest he was during the true investment time. It is the least we can do for the delay.
Best regards,
Heather
Martyn’s Colleague
—–Original Message—–
From: [Martyn’s Colleague]
Sent: Friday, 8 October 2010 4:29 PM
To: Heather C. McLeish
Subject: RE: Are you back in Japan?
Heather
Are you still selling funds without disclosing to investors that they are closed for investment?
[Martyn’s Colleague]
Heather McLeish
—–Original Message—–
From: Heather C. McLeish [hcmcleish@lmaustralia.com]
Sent: 08 October 2010 08:36
To: [Martyn’s Colleague]
Subject: RE: Are you back in Japan?
Hello [Martyn’s Colleague],
Advisors who sell this fund that I work with do disclose the redemption delays. It is not a closed fund.
Martyn’s Colleague
—–Original Message—–
From: [Martyn’s Colleague]
Sent: Friday, 8 October 2010 4:42 PM
To: Heather C. McLeish
Subject: RE: Are you back in Japan?
Do you disclose the redemption freeze on your literature?
[Martyn’s Colleague]
Heather McLeish
—–Original Message—–
From: Heather C. McLeish [hcmcleish@lmaustralia.com]
Sent: 08 October 2010 08:52
To: [Martyn’s Colleague]
Subject: RE: Are you back in Japan?
The redemptions are being paid, albeit at a slower rate than they would be in normal market conditions. Please refer to the August portfolio update.
Martyn’s Colleague
—– Original Message —–
From: [Martyn’s Colleague]
To: Heather C. McLeish
Sent: Fri Oct 08 18:04:49 2010
Subject: RE: Are you back in Japan?
Heather
Do you not feel that you have a duty of care to your investors to disclose that there are parties who have been waiting 21 months for redemptions. This redefines the idea of ‘at a slower rate than normal’
I have just spoken to [Client 2] and he intends to launch a legal suit against LM. I really wish it had not come to this but I have held him at bay for as long as I can and I now feel let down by your promise of September redemptions.
I am completely at a loss to understand your exchange rate rationale. I was under the impression that you were awaiting certain sales of land. He invested in AUD [Australian dollars] so how do exchange rates have any bearing?
If you could at least provide a credible explanation for the delay I may be able to take some heat out of this situation.
[Client 2] is a highly experienced and very senior investment banker who has been up until now very patient. He now sees this as a point of principle and will engage the very best legal council to take on LM. Surely you could have at least made a part payment by now? LM have damaged my relationship with one of my very best clients and I now feel terribly let down and would appreciate you passing on my concerns to Peter Drake.
If you recall I attended a presentation months ago in Tokyo and it was mentioned repeatedly that LM was paying it’s coupons on time but no mention was made at that gathering that effectively redemptions have been frozen on this fund. You still have not yet replied to my question about the position of [Client 2’s] request in the queue.
I await your response on this matter and consider it appropriate for Peter to reply to my wider concerns.
Regards
[Martyn’s Colleague]
Lisa Darcy
—–Original Message—–
From: Lisa Darcy
Sent: Sunday, 10 October 2010 4:53 PM
To: Heather C. McLeish
Subject: MPF update
Dear Heather
Please pass the following information to [Martyn’s Colleague] in relation to his queries [above]. I am also happy to speak with [Martyn’s Colleague] in person if he requires anymore explanation. I have also passed this on to Peter Drake who has read both [Martyn’s Colleague’s] email and my reply.
Firstly, an update on the Australian Property and Credit markets.
The property market and the general economy in Australia (as evidenced by the strong AUD) has held up well over the last few years, however the credit and financial markets still remain extremely tight.
The banks in Australia are just not lending to the levels they were prior to the GFC [global financial crisis], in particular in the commercial and business sector and more specifically transactions over $5m are just not happening in the current market.
Commercial lending transactions when they do occur are taking as long as 8-12 months – this makes it very difficult for sellers and purchasers alike.
This is the major factor which has led to the delay in redemption payments to investors as the funds assets are primarily in this sector in Australia.
Several of the assets within the fund are currently available for sale – they include completed developments in the residential, commercial and industrial sectors in Australia – again the sales process is influenced by the availability of credit which as I mentioned above is slow.
One of the larger investments in particular which is located in SE QLD [South East Queensland] (a growth corridor) was offered for either complete or partial sale earlier in the year – this did not eventuate due to reasons outlined above – the fund will continue to hold and develop this asset as it continues to and always did represent an excellent investment opportunity for the fund.
Just so you are aware, the only reason this particular property was ever offered for sale was to satisfy those investors with a redemption request as it was always meant to be a long term hold – bearing in mind the decision to invest in this asset was taken well before the GFC.
The MPF [Managed Performance Fund] is a vehicle which is designed for sophisticated investors only as the nature of a large component of its assets are in the property development sector in Australia (this is how we provide the additional returns) – as we have seen over the last year in particular this can lead to timing issues in relation to the realisation of assets back into cash and cause delays in redemption payments.
The fund also offers investments in multi-currency – this enhances the fund as an investment choice for advisers and their investors.
In order to provide this the fund needs to hedge its FEX [foreign currency] exposure via two providers – they require a certain percentage of margin which increases as you know with the very strong increase in the AUD.
Understand that [Client 2] invests in AUD – however as the fund is pooled we need to manage the FEX margin exposure across the whole book as leaving these positions uncovered could lead to a loss at fund level and could impact all investors.
We also understand how this may seem a little odd to an investor with AUD exposure only but this is the way the fund is structured and we must cover these calls as a priority over redemption payments.
Conversely, the strength in the AUD is a good sign however of the ongoing performance and expectations of the Australian economy and even though this issue is extremely frustrating for those investors who wish to exit – over the medium to longer term this will see the credit and financial markets return to normal and the fund operating within its normal redemption timeframes once again.
[Client 2’s] payment will be one of the first to be released once our funds management committee determines that the assets are protected and that we can apply funds to redemption payments again.
Please let me know if you have any further questions
Lisa
Heather McLeish
—–Original Message—–
From: Heather C. McLeish [hcmcleish@lmaustralia.com]
Sent: 12 October 2010 00:09
To: [Martyn’s Colleage]
Subject: FW: MPF update
Good Morning [Martyn’s Colleague],
Please see the [above] email from Lisa in regards to [Client 2’s] redemption.
You have relocated to HK [Hong Kong], correct? Please let me know if you have time for a conference call this week. Lisa will be in Tokyo next week if you are going to be here we can arrange a meeting.
Best regards,
Heather
Martyn’s Colleague
—–Original Message—–
From: [Martyn’s Colleage]
Sent: Tuesday, October 12, 2010 2:29 PM
To: ‘Martyn Terpilowski’
Subject: FW: MPF update
what dya think?
See [above]
[Martyn’s Colleague]
Martyn Terpilowski
From: Martyn Terpilowski
Sent: 12 October 2010 15:09
To: [Martyn’s Colleague]
Subject: RE: MPF update
Mmmmmm
1) why are they still taking money in, if this is the case? This should not be allowed and are brokers being truthful when selling this fund (i.e telling clients there are redemption issues).
2) [Client 2] invested in the fund BEFORE it was multi-currency and therefore it is totally unacceptable that this is used as an excuse and is basically not what he bought.
3) why were we told when LM knew already that were delays that there were no delays? That remains a question that has never truly been answered.
4) the comment I have increased the size of and coloured red [above] in regards to [Client 2’s] payment – suggests infact that as I suspected – No payments are being made right now. This makes the fact that they are taking money in even worse.
Martyn
#LM #LM Managed Performance Fund #PeterDrake #HeatherMcLeish #LindaDarcy #MartinTerpilowski
Can we get any info of what Drake was getting paid in management fees etc? I'm betting the fund had enough coming in to pay him but nobody else. ASIC are a bit like the ACCC who keep telling us the oil companies are colluding and price fixing. Then do nothing to stop it!
Old time crooks used to wear a boiler suit and balaclava, modern crooks wear a suit and tie and have their teeth veneered.
I worked in China in the 80s when communism was in its prime in the days when you could only stay at certain hotels & your passport veted via permissions on your movements. My Chinese friends said you trust noone but yourself & least of all a character who comes out with amazing promises. You could not deposit earnings into any Chinese State Bank as that mean’t you were detrimental to the communism system. The idea as Weapon says, put it under the bed. The Chinese did just that—they stuffed their money into boxes until they got what they wanted in CASH -biz/property/shophouse all in one. They paid it in full—it was theres—no mortgage—no inbetweens—no transport from home to business—it was all in one — then they forgot this buy and moved on to the next buy & did the exact same thing. That’s how they accumulate wealth with nothing being owed to anyone & no monies owing & in their name under the then Communism regime. LM speculators did the opposite and again I emphasis that this is a ponzi scheme but Darcy, McLeish and Drake etc will blame anyone but themselves just like a peodophile does when he gets caught. This is a lesson that foreigners coming to Thailand or at home need to wake up on. The system doesn’t work in your favour if it goes wrong so you are playing a game of chance. Cases in NZ [ not sure about Australia] with high flyers who could do no wrong like Bridgecorp, Hanover Finance, Blue Chips & many others saw these characters who embezelled millions get off real lightly & used Trusts to hide their ill gotten gains while investors lost their life savings. The Courts are useless, as is the NZ Govt and theres no law in place to take private equity in trusts to recoup loses yet has been going on for years. Drake whose a kiwi will do exactly the same & laugh due to non admission? but there are ways?
Go pinch a cake of chocolate from the local shop and you lose your job, name in the paper, fine etc and be known as a petty thief for the rest of your days. The rule of thumb here is the more you can embezzle the less time you get so those who got bitten by this scheme need to now spend a little more to join forces to lobby against LM & seek some sort of recompense via class action —its up to you but it can be achieved & you have one honest IFA who saw the light on his investor’s behalf go offer your support where it is needed and things could work out. Do nothing then blame yourself & let these monkeys carry on to the next scheme. As for McLeish anyone can read thru the lines the crap she writes about as its plain to see there was never going to be redemption payments to anyone but Drake, her and Darcy before they absconded. Its time to exemplify these characters on a few other websites & blogs. The more people know about them the better as they are all a bunch of liars.
You've answered all my queries in one statement. Drake is a Kiwi.
Yes, he was milking it for all its worth. The records show that LMIML was still taking exceptionally high fees from the funds. These were often taken in advance of providing any management service. The defaulting mortgages were made to development companies and trusts which generally were ones only controlled by Drake. Drake also took personal loans to a reported $46 Million.
He's now running another of his companies – Australian Global Insurance Services (AGIS). Not a director or shareholder but he's the boss. Is this suspect or what?
Only 46 million? I'm glad he's not greedy………..