aug 2011 mp paul fletcher

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Subject: Aug 2011 emails to MP Paul Fletcher

From: Geronimo Bob

Date: 8/24/2011 1:00 AM

To: "Graham, Casey" , "Giles, Rebekah"

---------- Forwarded message ----------

From: Geronimo Bob

Date: Fri, Aug 19, 2011 at 5:22 PM

Subject: trio capital inquiry

To: "McCulloch, David (P. Fletcher, MP)" , "Fletcher, Paul (MP)"

Dear Mr. Fletcher,

I have brief comments both in regards to your unanswered quesons in wring as well as remarks

made by ASIC chairman Medcraregarding the status of the Trio invesgaon. I believe you and

your commiee should make independent inquiry as the various asserons made by ASIC which in

my opinion highly quesonable, including their recent published info on frozen funds (which is just

plain wrong. (one frozen hedge fund).

For the connued 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

ected, ASIC needs to answer the quesons in wring you have submied. Specically, the extent

to which investors suered losses due to criminal/fraudulent acvies as compared to negligence

or exceponal market condions, inability on the part of both regulators and

administrators/liquidators to understand much less unwind and liquidate complex nancial

contracts. Judge Palmers speculaon of fraud in his decision winding up ve trio managed

investment funds and Minister Shorten's decision to compensate superannuaon investors $55million has created an inaccurate belief in the public consciousness (an oshore evil mastermind

named Jack Flader who for some reason has not been charged, extradded or subject to any legal

acon whatso ever!) making it incredibly dicult to challenge the lack of evidence or the many

inconsistancies much less the consideraon of Trio's failure caused by more mundane

factors.(From which investors potenally 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 parcipated 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!

2011emailstoMPPaulFletcher

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Investors have unquesonably suered greatly because of Trio Capital; many of these investors are

being taken advantage of again by greedy class acon lawyers and advisers seeking to pursue legal

acon for which there is no factual basis and no possibility of success.

I hope that you and that PJC will hold all pares responsible for this maer to account.

Previously Tony DAloisio and now Greg Medcrahave assured you and the PJC that the Trio

invesgaon was a high priority and ongoing maer. At the most recent hearings he had assured

the commiee that he was personally looking into the maer. While your quesons and the PJC

inquiry into Trio has resulted in a number of publicized acons, this is clearly a case of too lile 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 invesgaons into Trio Capital were completed Dec 2010 aer

reaching a plea agreement with Shawn Richards. The enre Shawn Richard Invesgaon team wereawarded Australia Day medallions Feb 2011 in recognion for their eorts. Historically ASIC had

given medallions for completed invesgaons not those sll ongoing. Shortly aer the two lead

invesgators Joe Kouper and James Hogan leASIC for posions in private sector. The invesgaon

is currently being handled by an ASIC lawyer with lile invesgaon or nancial product

experience. She is essenally a beurocrat. She is being supported by an accountant who has been

with ASIC for only a short me.

Mr. Richard's lawyer, Costa Green (who curiously had previously advised Phillip York and theinvestments in the ARP Growth Fund) negoated 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 publicaons 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 addion there apeared to be very lile benet from Mr. Richard's undertaking as

his convicons would preclude him from work in nancial services in the future anyway.


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Links to informaon ASIC was acng on when they inially shut down Trio

hp://www.smh.com.au/business/trio-from-the-boiler-room-into-the-re-20100101-llq3.html

hp://www.smh.com.au/business/blogger-who-blew-the-whistle-on-hedge-fund-20100101-

llq5.html

ARP Invesgaon

2. ASIC's invesgaon into the ARP growth fund was a half assed eort from the start. They were

clearly going through the moons to appease demands for acon in response to Stuart Washingtonand John Hempton's sensaonal ARP fraud accusaons published in numerous arcles 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

starng from Dec 2009. PPB has admied that informaon published in the Sydney Morning Herald

and aributed to partners of PPB were actually provided to them by Stuart Washington (SMH

reporter) and John Hempton. The ASIC, ARP invesgaon was opened only AFTER these media

reports were published; they were never pursued seriously by ASIC. The invesgaon was given to

Ross Blowers; while an experienced invesgator, he did not have any understanding or experience

of structured products, hedge funds or derivaves AT ALL. He was also being made redundant by

the cost cung at ASIC.

The invesgaon into the ARP growth fund was given to someone without the experse 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 acvity and ulmately delaying Mr. Blowers departure

by two weeks.

ARP Fraud links

hp://www.smh.com.au/business/asic-must-move-quickly-on-trio-fund-20100215-o2yu.html

hp://brontecapital.blogspot.com/2010/03/my-pper-on-astarra.html


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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

aached a PDF document with various documents I have compiled.

ASIC apears to have only included stascs for funds that have applied for hardship relief rather

than a complete list of funds with altered redempon condions. 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 all11Equinox funds were frozen. ASIC granted fund

managers Certude (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 Certude/

HFA, BT, Select, Goldman, DB and many other hedge fund managers froze redempons in late

2008-2009.

Netwealth Frozen Funds link

hps://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 hedgefund frozen fund. ASICs stasc on HFs does not accurately characterize the exceponal

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 publicaon. That there was only one hardship applicaon

would in my opinion demonstrate that investors in hedge fund products understood the risks

involved with hedge funds and alternaves 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 posions and open their funds up to

normal redempons.

What invesgaons were actually undertaken?

4. I had previously asked that you read Judge Palmer's April 16 decision winding up the Trio funds.


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Each of the rst four bullet points listed in Para 36 are objecvely wrong! Please ask ASIC or

Treasury to provide you the leer of sent by Dr. Ken Henry to ASIC Chairman Tony DAloisio in Sep

2009. Google Paul Richard Bell or see a prior ASIC release

hp://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 theFSA in the UK or the SEC about Pacic Connental UK and World Financial Group in NY(previously

called Pacic Connental Securies in 1999)

Look up Atlans Capital Markets (even beer ask ASIC for the administraon reports from Swiss

Financial or the brokerage and trade bloers)

The audits for both EMA and Exploraon 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

hp://www.ppbadvisory.com/creditor-informaon/v/175/trio-capital-formerly-known-as-astarra-

capital

Expense reports

hp://www.ppbadvisory.com/uploads/i175-Adavit-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 invesgaons were in large part based on the incorrect informaon

of John Hempton and reporters Duncan Hughes and Stuart Washington and then charged to the

funds by PPB as conducng invesgaon fees.

My own precarious legal circumstances do not allow for me to openly raise my concerns in a formal

submission to your comiee or alternavely to you personally. I hope that you connue your

invesgaons and make all those responsible for this maer accountable.


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Bob

Attachments:

frozenfunsaph.pdf 2.2 MB


aug 2011 mp paul fletcher

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