CAREER OPPORTUNITIES IN FUND MANAGEMENT.
The Australian Securities and Investment Commission has at
last started to take proceedings against LM Investment Management which has
taken down hundreds of millions in people’s pensions.
last started to take proceedings against LM Investment Management which has
taken down hundreds of millions in people’s pensions.
But the victims are not exactly going to be thrilled with
the news.
the news.
What many see are out and out criminal offences ASIC sees as civil
matters – and ASIC are prosecuting under dereliction of duty laws – the maximum
fine of which is AUS$200,000 (£109.697).
matters – and ASIC are prosecuting under dereliction of duty laws – the maximum
fine of which is AUS$200,000 (£109.697).
Most individuals lost a lot more than that.
Here follows the report from International Financial Adviser.
 |
| Francene Mulder – left |
ASIC has started commenced legal action against LM
Investment Management, seeking financial penalties and banning orders against
the collapsed fund manager.
Investment Management, seeking financial penalties and banning orders against
the collapsed fund manager.
The corporate regulator announced it had brought civil
proceedings in the Federal Court of Australia against LM Investment Management
founder Peter Charles Drake and former directors Francene Maree Mulder, Eghard
van der Hoven, Simon Jeremy Tickner, and Lisa Maree Darcy.
proceedings in the Federal Court of Australia against LM Investment Management
founder Peter Charles Drake and former directors Francene Maree Mulder, Eghard
van der Hoven, Simon Jeremy Tickner, and Lisa Maree Darcy.
 |
| van der Hoven |
In a statement, ASIC alleged Mr. Drake “used his position to
gain an advantage for himself and the former directors breached their
director’s duties for failing to act with the proper degree of care and
diligence regarding transactions involving the LM Managed Performance Fund
(MPF).”
gain an advantage for himself and the former directors breached their
director’s duties for failing to act with the proper degree of care and
diligence regarding transactions involving the LM Managed Performance Fund
(MPF).”
Specifically, ASIC stated the action concerns a series of
loans made to Maddison Estate Pty Ltd – which Mr. Drake owned – to develop a
Gold Coast property development in 2011 and 2012.
loans made to Maddison Estate Pty Ltd – which Mr. Drake owned – to develop a
Gold Coast property development in 2011 and 2012.
The maximum fine for a director breaching their duties is
$200,000 for each contravention, ASIC stated.
$200,000 for each contravention, ASIC stated.
As well as fines, ASIC is also seeking to disqualify Mr.
Drake and the former directors from managing companies and providing financial
services, according to the statement.
Drake and the former directors from managing companies and providing financial
services, according to the statement.
Well, amassing those millions to get such an irrisory fine was surely in their calculations, as to losing their "status" as Directors or Managers does not add to punishment since their future is already financially guaranteed. Those who write and approve the Laws are in the same "club" as those who profit from them, we are just mere astonished spectators of the millions of dollars merry go round…Anyone can pay their way out anywhere in the world, it is just a matter of "how much"…
Whatever 'sentences' they receive will never be enough for the pain and anguish they have caused to so many of their victims.
The way they will pay their way out of it will result in an outcome very similar to Thailand I think. The corrupt and rich will again get away with it, and probably only token fines within another legal system which is biased towards the wealthy.
It must not stop here. There is a real criminal case to be brought.
What about all the hanger-oners? There were plenty of other shysters in this scam who also took a large slice of the victims' saving and pensions.
Some of those same bottom feeding IFAs are still walking the streets here now. Not to be trusted. Not forgotten. Not going to get away with it.
But once sanctioned and punished for these breaches of duty then it'll be open for the losers to mount civil class actions against the LM board.
Criminal prosecutions inevitably drag on and rarely ever result in custodial sentences which usually involve suspension or are so short as to be meaningless.
Go for the money. Make their lives hell and never stop.