Djerriwarrh Investments (DJW.AX) is a criminal listed investment company that uses accounting fraud to inflate its books, including doublecounting upcoming dividends as a receivable, and manipulates its share price beyond asset backing before issuing shares to granny investors. DJW shares are currently ramped 29% beyond the value of the listed holdings that constitute its backing, so an investor buying $10,000 worth of DJW makes an immediate loss of around $2,200, not even taking into account subsequent fees charged. Like other similar scam companies, Djerriwarrh has a mysterious buyback mechanism in place with Goldman Sachs, for "capital management" purposes, that DJW claims to not use at all.
http://www.asx.com.au/asxpdf/20140203/pdf/42mj09h6cvm2xr.pdf
Scam listed investment companies have forged high level connections with regulators, media, analysts, fund managers and the government. The companies sometimes buy respectability by enticing figureheads to join their boards, relying on greed to silence questions and doubts fiduciary duty would mandate. On 29 May Djerriwarrh announced that a board member of the Reserve Bank of Australia had joined as non-executive director, to help with "deliberations" and "governance".
http://www.asx.com.au/asxpdf/20140529/pdf/42px6rv23zdksm.pdf
If this central banker observed her fiduciary duty as director of a company entrusted with other people's money, she would have done her due diligence, studied the annual reports for Djerriwarrh, and realized it is a fraud scheme. DJW is structured so that the average investor almost certainly will lose money, and thus has crossed the line into scam. Joining such a scam can provide a quick revenue stream in the form of director fees, but requires a complete lack of integrity and criminal negligence of fiduciary duty.
Friday 30 May 2014
Friday 23 May 2014
Avestra's Next Investors pump-and-dump AnaeCo
Avestra Capital runs a pump-and-dump operation, through its corporate authorised representative S3 Consortium Pty Ltd, offering to artificially inflate the price of Australian small cap shares for a fee. The website www.nextinvestors.com spruiks shares the criminals are trying to pump-and-dump, with these deliberately misleading "tips" and "opportunities" spread through spam emails and social media. The website even has a special VIP section for the extremely gullible to self-select. Most recently, Next Investors pump-and-dumped AnaeCo (ANQ.AX), an eternally loss-making trash management company with ties to other elements of the Australian financial underworld.
ANQ follows the standard pattern of manipulated shares, with long term catastrophic shareholder destruction interspersed by ramps designed to benefit insiders. This is because ANQ is a listed securities fraud. On 21 March 2014, the Avestra criminals started the pump-and-dump with a Next Investors article claiming ANQ had miraculously solved the world's waste problems. Global waste crisis solved!
http://www.nexttechstock.com/global-waste-crisis-solved-asx-company-invents-astonishing-technology
Over the next few days the criminals that had commissioned this pump-and-dump could unload their ANQ junk shares at up to 55% higher prices, fleecing the unsuspecting until the engineered ramp inevitably faded. What happened next is as idiotic as any episode of "America's Dumbest Criminals". When queried by the ASX about the mysterious 21 March price increase, the criminals at AnaeCo just had to say they had no idea, using the template provided here. ASIC would have written it off as yet another one of their magical market mysteries. Instead, AnaeCo responded that the price increase could be attributed to a positive article by "Stocks Digital".
But the name "Stocks Digital" is not mentioned anywhere in the article published on Next Investors. The website www.stocksdigital.com offers to "raise awareness of small caps" using "social media and the internet", providing no other information except a number to an Australian mobile phone. By mentioning Stocks Digital, the AnaeCo criminals inadvertently proved they had commissioned the pump-and-dump, and supplied the contact information of the pump-and-dumpers. In May ANQ announced that an ANQ director had lost control of a 163m shareholding, followed by the announcement of his resignation. The share price ramp to $0.013 at the end of the March quarter had artificially inflated the "market" value of the director shareholding used as security for a loan. Just before end of trading on May 23, 163m ANQ shares changed hands at $0.006.
According to ASIC, pump-and-dump schemes are illegal and operators "can be jailed and fined heavily". However, since ASIC never enforces this, ASIC has effectively legalized pump-and-dump schemes in Australia. As a result, such fraud is guaranteed to become more common.
ANQ follows the standard pattern of manipulated shares, with long term catastrophic shareholder destruction interspersed by ramps designed to benefit insiders. This is because ANQ is a listed securities fraud. On 21 March 2014, the Avestra criminals started the pump-and-dump with a Next Investors article claiming ANQ had miraculously solved the world's waste problems. Global waste crisis solved!
http://www.nexttechstock.com/global-waste-crisis-solved-asx-company-invents-astonishing-technology
Over the next few days the criminals that had commissioned this pump-and-dump could unload their ANQ junk shares at up to 55% higher prices, fleecing the unsuspecting until the engineered ramp inevitably faded. What happened next is as idiotic as any episode of "America's Dumbest Criminals". When queried by the ASX about the mysterious 21 March price increase, the criminals at AnaeCo just had to say they had no idea, using the template provided here. ASIC would have written it off as yet another one of their magical market mysteries. Instead, AnaeCo responded that the price increase could be attributed to a positive article by "Stocks Digital".
According to ASIC, pump-and-dump schemes are illegal and operators "can be jailed and fined heavily". However, since ASIC never enforces this, ASIC has effectively legalized pump-and-dump schemes in Australia. As a result, such fraud is guaranteed to become more common.
Tuesday 20 May 2014
Google Australia censorship
Google Australia has removed several posts from this blog, at the behest of the criminals whose securities fraud are exposed within. People in China and Russia are free to read these posts if they wish, and make their own mind up, but Australians are not allowed to. In Australia, criminals decide what information you are allowed to access. This is for your own good. However, Australian readers of this blog can bypass this censorship by adding /ncr to the blog address, with the full uncensored version of The Great Australian Investment Ponzi available here:
http://drbenway.blogspot.com/ncr
The removed posts can be accessed by Australian readers by following these links:
http://drbenway.blogspot.com/ncr/2014/04/conman-michael-
http://drbenway.blogspot.com/ncr/2014/01/avestra-hires-self-confessed-criminal.html
http://drbenway.blogspot.com/ncr/2013/12/aha-avestra-and-formosa-auto-trade-scam.html
The Chilling Effects clearinghouse still has not processed the takedown requests in relation to these posts. Perhaps this information is taboo too. If you are a rich criminal, the Australian system works great, as it allows you to hide your crimes using legal threats. After all, who has better access to lawyers, rich criminals or whistleblowers? According to Google's transparency report, in the first six months of 2013, the Australian government made 19 requests for content removal, of which 4 were for defamation on Blogger.
http://www.google.com/transparencyreport/removals/government/AU/
With recent judgments against Google in Australia and in the EU, the censorship situation is likely to deteriorate worldwide. The effect of this is easy to predict. Information that is true and in the public interest will be suppressed by those with the means to do so.
http://drbenway.blogspot.com/ncr
The removed posts can be accessed by Australian readers by following these links:
http://drbenway.blogspot.com/ncr/2014/04/conman-michael-
http://drbenway.blogspot.com/ncr/2014/01/avestra-hires-self-confessed-criminal.html
http://drbenway.blogspot.com/ncr/2013/12/aha-avestra-and-formosa-auto-trade-scam.html
The Chilling Effects clearinghouse still has not processed the takedown requests in relation to these posts. Perhaps this information is taboo too. If you are a rich criminal, the Australian system works great, as it allows you to hide your crimes using legal threats. After all, who has better access to lawyers, rich criminals or whistleblowers? According to Google's transparency report, in the first six months of 2013, the Australian government made 19 requests for content removal, of which 4 were for defamation on Blogger.
http://www.google.com/transparencyreport/removals/government/AU/
Sunday 18 May 2014
AIMS Property Securities Fund circular investment fraud
AIMS Property Securities Fund (APW.AX), formerly MacarthurCook Property Securities, is a loss-making property fund flagrantly committing fraud by making circular "investments" with related funds. Dual listed on the ASX and SGX, the fund holds a purported $37m in unlisted property funds that it values at will, and a further $18m in listed property funds. The fund consistently burns around half the cash generated by its assets, and so given these ongoing costs its fair value to a non-controlling investor would be around 50% of NTA. If APW truly traded in a free market, where a multitude of buyers and sellers made transactions without the intention or ability to affect the price, it would trade at 50% of NTA. The criminal operators of this fund has attempted to ramp the price up towards NTA with buybacks and related party purchases. So naturally, APW follows the familiar pattern of long-term shareholder value destruction interspersed with sharp ramps to benefit insiders.
The latest half-yearly report for APW shows how the fund has "invested" $3.5m in the related MacarthurCook Office Property Trust. The report also discloses how the MacarthurCook Office Property Trust has "invested" $2.5m in APW. Because of this circular "investing", these related funds report NTAs fraudulently inflated by several million dollars, with this fraud constituting a significant proportion of their reported assets. This circular investment charade is criminal, regardless of regulator incompetence. APW also holds 49.9% of AIMS Property Fund (St Kilda Road), while related party AIMS Capital Management Limited holds 27.8% of APW. Seen as a whole, APW is a criminal enterprise, a circular investment scam that plans to issue units to victim investors based on a purposefully inflated balance sheet and performance.
AIMS Property Securities Fraud recently won a long running lawsuit against P-REIT (PXT.AX), currently managed by equally criminal BlackWall Property Fund. Just like APW, BlackWall funds circularly "invest" in each other and perform accounting fraud, as seen in the latest PXT half-yearly report. The lawsuit related to rights of withdrawal and redemption, as APW had been issued units with the promise of par redemption. With the judgment for $15.4m plus costs, one set of criminal managers has been ordered to hand over shareholder funds to another set of criminal managers. There were no small shareholder winners.
Wednesday 14 May 2014
The Australian Foundation Investment Company share fix
The Australian Foundation Investment Company (AFI.AX) is a criminal listed investment company that engages in accounting fraud and share manipulation. AFI cooks its books with related party crossholdings, ramped illiquid assets and doublecounted dividends receivables. The AFI cartel ramps its share price above asset backing before issuing shares, in one of the most flagrant cases of Australian securities fraud. The fund currently has a "market" price set by the criminals at 19% above asset backing, with this price of course only sustainable as long as investors do not actually try to cash out. An investor purchasing $10,000 worth of newly issued AFI shares makes an immediate 16% loss, receiving an asset backed by $8,400 and paying a hidden $1,600 fee to the scheme operators, not even taking into account subsequent fees. This is not an investment, it is an outright scam.
Recently, the entities that fix AFI's price curiously have abandoned any semblance of "market" pricing. Starting in March 2014, the AFI share price plateaued in a way that is overtly inconsistent with market pricing, openly proving it is manipulated. Between 11/03/14 and 11/04/14, AFI closed at $6.00 plus/minus $0.02 on 21 out of 24 trading days. Even more curiously, between 14/04/14 and 7/05/14, AFI closed at $5.96 plus/minus $0.01 on 14 out of 15 trading days. This "liquid" $6.2bn listed company closed within 0.17% on eleven days straight, a near statistical impossibility in an unmanipulated market. Only a moron would pretend this has anything to do with market pricing or that AFI's share price is not fixed.
Australian presstitutes, analysts and dregulators simply pretend as if this did not happen.
Recently, the entities that fix AFI's price curiously have abandoned any semblance of "market" pricing. Starting in March 2014, the AFI share price plateaued in a way that is overtly inconsistent with market pricing, openly proving it is manipulated. Between 11/03/14 and 11/04/14, AFI closed at $6.00 plus/minus $0.02 on 21 out of 24 trading days. Even more curiously, between 14/04/14 and 7/05/14, AFI closed at $5.96 plus/minus $0.01 on 14 out of 15 trading days. This "liquid" $6.2bn listed company closed within 0.17% on eleven days straight, a near statistical impossibility in an unmanipulated market. Only a moron would pretend this has anything to do with market pricing or that AFI's share price is not fixed.
Australian presstitutes, analysts and dregulators simply pretend as if this did not happen.
Australian Unity funds fraudulently misrepresent fees
Australian Unity Limited (AYU.AX) is a fund manager engaged in related party fraud, with its various funds "investing" in each other. By using internal crossholdings, Australian Unity charges management fees many times in excess what it discloses in Product Disclosure Statements, and inflates the asset base upon which it issues units. This is deliberate fraud.
Page 6 of the Product Disclosure Statement of the Australian Unity Pro-D Balanced Fund, reports (negotiable) management fees of 0.65%. However, Australian Unity siphons money from Pro-D into various other related party funds, charging management fees several times over as part-owner of "investment partners" including Acorn Capital. This fraud allows Australian Unity to charge fees many times higher than it discloses, and inflates the fund's asset base. The magical get-out-of-jail card Australian Unity relies on is tucked into the last page of the PDS, where it says "The fund may also invest in other Australian Unity Investments managed funds".
Of course such a clause in no way frees the criminal directors from their fiduciary duty. Their related party "investing" is illegal, regardless of the clause. Nor can the clause be used to justify underreporting the fees charged. If such a clause could legally be used to hide fees, then all funds could report zero fees in disclosure documents, while having a centipede of intermediaries charge undisclosed fees. The clause is not lawful as it would invalidate the entire disclosure regiment. There would be no point in fee disclosure if such a clause could be used. But as long as ASIC protects the Australian Unity criminals, they can underreport the fees of their funds using fraudulent PDS.
Acorn Capital recently launched a listed investment company to join the circular investment cartel. The Acorn Capital Investment Fund Limited (ACQ.AX) charges 1% of assets plus a performance fee. Naturally, the criminals immediately siphoned money from Australian Unity funds into this new fee-charging intermediary, including money from the Pro-D Balanced Fund. This was a deliberate act of fraud.
Page 6 of the Product Disclosure Statement of the Australian Unity Pro-D Balanced Fund, reports (negotiable) management fees of 0.65%. However, Australian Unity siphons money from Pro-D into various other related party funds, charging management fees several times over as part-owner of "investment partners" including Acorn Capital. This fraud allows Australian Unity to charge fees many times higher than it discloses, and inflates the fund's asset base. The magical get-out-of-jail card Australian Unity relies on is tucked into the last page of the PDS, where it says "The fund may also invest in other Australian Unity Investments managed funds".
Of course such a clause in no way frees the criminal directors from their fiduciary duty. Their related party "investing" is illegal, regardless of the clause. Nor can the clause be used to justify underreporting the fees charged. If such a clause could legally be used to hide fees, then all funds could report zero fees in disclosure documents, while having a centipede of intermediaries charge undisclosed fees. The clause is not lawful as it would invalidate the entire disclosure regiment. There would be no point in fee disclosure if such a clause could be used. But as long as ASIC protects the Australian Unity criminals, they can underreport the fees of their funds using fraudulent PDS.
Acorn Capital recently launched a listed investment company to join the circular investment cartel. The Acorn Capital Investment Fund Limited (ACQ.AX) charges 1% of assets plus a performance fee. Naturally, the criminals immediately siphoned money from Australian Unity funds into this new fee-charging intermediary, including money from the Pro-D Balanced Fund. This was a deliberate act of fraud.
Wednesday 7 May 2014
Blue Sky Alternative Investments related party fraud
Blue Sky Alternative Investments Limited (BLA.AX) is a relatively new related party fraud masquerading as a fund manager. Operating a number of "alternative" funds with assets largely revalued at will, Blue Sky "co-invests" shareholder capital in these related parties, paying management fees to itself. Blue Sky and its funds perform internal sham transactions to generate fake profits and assets. The criminals then attract new victim investors using fraudulently manufactured performance metrics. The annual reports of Blue Sky are a maze of related party transactions and interests, with gross accounting fraud rendering them next to useless for an investor. Like other circular investment scams, Blue Sky's balance sheet is bloated by related party crossholdings, loans, intangibles and receivables. The company's net profit is inflated by sham transactions and revaluations that have become increasingly farcical.
In the 2012 financial year the company used accounting fraud to inflate its net profit by $4m, with fraud constituting more than four fifths of reported profit. According to its annual report, in June 2012 Blue Sky bought the Lightsview Re-water Infrastructure Network business for $1, creating a magical $2.1m "profit". Blue Sky also bought and revalued Blue Sky Water Partner Pty during the year, creating a $1.7m "profit" from the sham related party transaction.
In the 2013 financial year revaluations boosted the company's reported net profit by 0.9m. Blue Sky "sold" Lightsview to Water Utilities Australia (WUA), an entity set up by Blue Sky itself, for $1,375,000 in cash and $1,375,000 in WUA stapled securities. This resulted in a fake "profit" of $0.6m for Blue Sky and the creation of $4.1m in goodwill. Blue Sky then increased its holdings in WUA by $5m, and gouged the entity with fees paid in scrip.
In its half yearly report to December 2013, Blue Sky reported the "acquisition" of Blue Sky RAMS Management Income Fund, Willunga Basin Water Company and Water Utilities Australia Fund 2. Equity accounting and revaluation of these acquisitions created $12m goodwill and $10m other intangibles. Blue Sky reported half yearly "revenues" of $8.2m, mostly from related parties in which Blue Sky "invests", and a net loss of $1.2m. This loss-making fraudulent mess of a company was then ramped to a $135m market cap, creating unrealized profits for criminal fund associate and substantial holder Pie Funds Management Limited.
In its latest quarterly report to March 2014, Blue Sky reports "lending" $2.4m to a director related entity. The Blue Sky criminals are planning to expand the circular investment cartel, putting $5m in Blue Sky Water Fund and $1m in Blue Sky Apeiron Global Macro B Trust. Blue Sky is also launching a listed investment company, complete with "bonus options", in yet another attempt to fleece granny investors. The LIC structure offers unique advantages to criminals, since LICs are permitted to issue shares at above asset backing, but have no obligation to buy back shares at any price.
In the 2012 financial year the company used accounting fraud to inflate its net profit by $4m, with fraud constituting more than four fifths of reported profit. According to its annual report, in June 2012 Blue Sky bought the Lightsview Re-water Infrastructure Network business for $1, creating a magical $2.1m "profit". Blue Sky also bought and revalued Blue Sky Water Partner Pty during the year, creating a $1.7m "profit" from the sham related party transaction.
In the 2013 financial year revaluations boosted the company's reported net profit by 0.9m. Blue Sky "sold" Lightsview to Water Utilities Australia (WUA), an entity set up by Blue Sky itself, for $1,375,000 in cash and $1,375,000 in WUA stapled securities. This resulted in a fake "profit" of $0.6m for Blue Sky and the creation of $4.1m in goodwill. Blue Sky then increased its holdings in WUA by $5m, and gouged the entity with fees paid in scrip.
In its half yearly report to December 2013, Blue Sky reported the "acquisition" of Blue Sky RAMS Management Income Fund, Willunga Basin Water Company and Water Utilities Australia Fund 2. Equity accounting and revaluation of these acquisitions created $12m goodwill and $10m other intangibles. Blue Sky reported half yearly "revenues" of $8.2m, mostly from related parties in which Blue Sky "invests", and a net loss of $1.2m. This loss-making fraudulent mess of a company was then ramped to a $135m market cap, creating unrealized profits for criminal fund associate and substantial holder Pie Funds Management Limited.
In its latest quarterly report to March 2014, Blue Sky reports "lending" $2.4m to a director related entity. The Blue Sky criminals are planning to expand the circular investment cartel, putting $5m in Blue Sky Water Fund and $1m in Blue Sky Apeiron Global Macro B Trust. Blue Sky is also launching a listed investment company, complete with "bonus options", in yet another attempt to fleece granny investors. The LIC structure offers unique advantages to criminals, since LICs are permitted to issue shares at above asset backing, but have no obligation to buy back shares at any price.
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