Recently I posted a blog about Astarra Funds Management and the likelihood over $120Million was stolen from Aussie Mum and Dad investors by a group of well known international fraudsters. In July 2010 a hearing took place in Sydney, by the liquidators, to determine where the money went. To date, nothing else has happened. The money is still missing and noone has been charged.
Back in 2008 ASIC permanently banned a financial planner for recommending Astarra products to clients during 2006-2007 because he failed to disclose a $500,000 loan made from Astarra to he and his wife.
In 2010 in the liquidator's proceedings, Shawn Richard, the Fund Manager and face of Astarra, admitted to more 'secret' loans made to current dealer groups involved.
Our regulator, ASIC, should be commended for acting swiftly with it's stop order on Astarra after receiving a letter from hedge fund owner John Hempton in October 2009.
The question has to be asked then, what has ASIC been doing since? And why wasn't Astarra on their 'watch' list?
Under the criminal law system a murderer is charged immediately with a trial date set for some time in the future.
As reported in the Sydney Morning Herald, whilst investors money was frozen in late 2009, some not able to afford to celebrate Christmas, Astarra's Shawn Richard was out living it up. Since his cross examination in July, he is still living it up having been repaid a $1million loan from Wright Global Investments, an associated firm also now in liquidator's hands.
Under the civil system, it seems a possible fraudster or a dodgy dealer group can go on foot loose and fancy free for a couple of years before the regulator catches up. How is this fair? Whilst it isn't a life that has been murderously extinguished, it is someone's life savings that is in jeopardy that quite obviously has an enormous impact on someone's life going forward.
There are very specific guidelines in our society about what is morally wrong and what is right.
There are also very specific regulations in place for fund managers, dealers and financial planners so as to protect a consumer's best interest.
Come on ASIC. We're sick of waiting.
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