Astarra Update: AMI twist and apparent Government Compensation

AMI nasal spray for erectile disfunction,  we've all heard the ads on the radio.  What you may not know is that AMI has now been placed into voluntary administration in Australia, by Mr "Jack" Vaisman, the company's biggest shareholder, promoter and resident doctor.  Dodgy practices and dodgy procedures; on the same day the administrators were appointed, Mr Vaisman was informed he was to be prosecuted by the consumer watchdog for ''unconscionable conduct''. 

However, delve deeper into this company as a particular hedge fund "sleuth" did and interesting facts are revealed.  The silent partner of AMI (owning around 50%) was controlled by no other than Astarra's apparent godfather, Jack Flader.  As detailed in the Sydney Morning Herald, Jack Flader's association with AMI is in keeping with his apparent involvement in the theft of over $118million of Mum & Dad investor's money in Australia:
In 2005, Mr Flader and Mr Vaisman's lawyer, Richard Doyle, concocted a plan to float AMI on the US stock exchange. They gained control of a company shell and bought two Australian companies they had also set up - one with intellectual property rights for the erectile disfunction spray in Australia and one housing international rights to the ''technology''.

Although these rights were based not on a patent but on an ''innovation patent'' - which was achieved by filling out a simple form at a cost of only $150 - the promoters sold them to the US company for $24 million. They repeated this deal for the international rights the next year, again for $24 million.
Investigations by the Herald also found that interests associated with Mr Flader and Mr Vaisman were active in trading the US stock AMI among themselves.

Shawn Richard it seems was also on the gravy train, as detailed again in the Sydney Morning Herald on the 4th January In his emails to Flader, Richard discussed their half ownership of Advanced Medical Institute. Richard also mentioned discussions he had been having with Richard Doyle.

And these two blokes claim to be puppets, scapegoats or subjects of a smear campaign...

The other Astarra development this week, is this:  A particular SA dealer group (revealed as having entered into secret loans with Shawn Richard) is now claiming to its clients that a refund of between 7%-15% from the federal government will be paid to investors affected by the Strategic Fund Investment in early February.  Good news for investors?  To date, there has been no official press release regarding this matter so it is baffling that the dealer group is able to quote a definitive outcome and percentage to it's clients.  ...whilst this has been applied for under Section 23 if and what is paid is entirely at the discretion of the Minister of Revenue and Assistant Treasurer. Will compensation be paid?  Probably.  How much?  That's up to the Minister, but given we're talking more than $100 million stolen from clients in that particular fund, perhaps the government might look into chasing those particular dealers to claw back some of that money...