MINUTES OF MEETING OF CREDITORS OF: COURTENAY HOUSE CAPITAL TRADING GROUP PTY LTD(INLIQUIDATION) ACN 152 224 149 COURTENAY HOUSE PTY LTD (IN LIQUIDATION) ACN 130 607 644 HELD AT THE WESLEY CENTRE, 220 PITT STREET, SYDNEY NSW ON 31 JULY 2017 PRESENT: Said Jahani Joint and Several Liquidator Lisa Gibb Assistant to the Liquidator’s Scott Hedge Liquidators’ legal advisor INTRODUCTION: Said Jahani opened the meeting at 2:25PM The Chairperson tabled the attendance register and observer’s register for each company. The attendance registers are attached as Annexure 1. The observers’ registers are attached as Annexure 2. CHAIRPERSON: Said Jahani advised creditors that pursuant to Corporations Regulation 5.6.17(1), as Official Liquidator he would act as Chairperson of the meeting. PROXIES: The Chairperson noted that he held one proxy from a creditor in his favour for Courtenay House Capital Trading Group for $400,000. NOTICE OF MEETING: The Chairperson tabled the notice of the meetings of the Companies forwarded to all known creditors on Wednesday, 19 July 2017 and advised that it be taken as read. QUORUM: In accordance with Corporations Regulation 5.6.16, the Chairperson advised that there was a quorum present for each of the two companies. The Chairperson confirmed that the meeting of creditors of the Companies was being held at a time and place convenient to the majority of persons entitled to receive notice of the meeting, in accordance with Regulation 5.6.14 of the Regulations. VOTING: The Chairperson advised that a resolution put to vote would be decided on the voices, unless a poll was demanded before or on the declaration of the result of the voices in accordance with Regulation 5.6.19(1) of the Regulations. The Chairperson further advised that due to the number of creditors present at the meeting, he would require creditors to raise their hand whilst voting, to make it easier to determine the vote.
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MINUTES OF MEETING OF CREDITORS OF: COURTENAY HOUSE CAPITAL TRADING GROUP PTY LTD(INLIQUIDATION) ACN 152 224 149 COURTENAY HOUSE PTY LTD (IN LIQUIDATION) ACN 130 607 644 HELD AT THE WESLEY CENTRE, 220 PITT STREET, SYDNEY NSW ON 31 JULY 2017 PRESENT:
Said Jahani Joint and Several Liquidator Lisa Gibb Assistant to the Liquidator’s Scott Hedge Liquidators’ legal advisor
INTRODUCTION: Said Jahani opened the meeting at 2:25PM The Chairperson tabled the attendance register and observer’s
register for each company. The attendance registers are attached as Annexure 1. The observers’
registers are attached as Annexure 2. CHAIRPERSON: Said Jahani advised creditors that pursuant to Corporations
Regulation 5.6.17(1), as Official Liquidator he would act as Chairperson of the meeting.
PROXIES: The Chairperson noted that he held one proxy from a creditor in
his favour for Courtenay House Capital Trading Group for $400,000.
NOTICE OF MEETING: The Chairperson tabled the notice of the meetings of the
Companies forwarded to all known creditors on Wednesday, 19 July 2017 and advised that it be taken as read.
QUORUM: In accordance with Corporations Regulation 5.6.16, the
Chairperson advised that there was a quorum present for each of the two companies.
The Chairperson confirmed that the meeting of creditors of the Companies was being held at a time and place convenient to the majority of persons entitled to receive notice of the meeting, in accordance with Regulation 5.6.14 of the Regulations.
VOTING: The Chairperson advised that a resolution put to vote would be decided on the voices, unless a poll was demanded before or on the declaration of the result of the voices in accordance with Regulation 5.6.19(1) of the Regulations.
The Chairperson further advised that due to the number of creditors present at the meeting, he would require creditors to raise their hand whilst voting, to make it easier to determine the vote.
MINUTES OF MEETING OF CREDITORS OF: COURTENAY HOUSE CAPITAL TRADING GROUP PTY LTD(INLIQUIDATION) ACN 152 224 149 COURTENAY HOUSE PTY LTD (IN LIQUIDATION) ACN 130 607 644 HELD AT THE WESLEY CENTRE, 220 PITT STREET, SYDNEY NSW ON 31 JULY 2017
Creditors of Courtenay House Pty Ltd (In Liquidation) were advised to vote by raising the purple voting card provided. Creditors of Courtenay House Capital Trading Group (In Liquidation) were advised to use the red voting cards provided. The Chairperson advised that the meetings of the Companies would be held concurrently as the Companies were sufficiently inter-related and that it would be more efficient to run both meeting concurrently unless there were any objections. There were no objections.
DISCLOSURE OF RELATIONSHIPS: The Chairperson tabled the Declaration of Independence, Relevant
Relationships and Indemnities (“DIRRI”) The Chairperson provided a brief background of the appointment
and a summary of the Liquidators’ dealings with ASIC to date. The Chairperson then spoke about the different roles the
Liquidators and ASIC perform.
The Chairperson advised that the Liquidators and ASIC are in regular correspondence and assisting each other with their investigations to the extent that they are permitted to do so by law. However, noted that certain information obtained by ASIC cannot be shared with the Liquidators as it has been obtained under ASIC’s statutory powers. The Chairperson advised that he would answer questions based on the facts and information gathered through the Liquidators’ investigations. However, the Chairperson noted that there are areas where it would be too early to provide an answer on or areas where investigations are still ongoing and any comment made could prejudice the outcome of the Liquidators’ potential actions. The Chairperson acknowledged the large number of questions received prior to the meeting and noted that time permitting he would try to answer all questions received to the extent he is able to do so.
UPDATE: The Chairperson gave a brief summary on the findings of the
Liquidation including assets secured to date, work completed to date, Directors RATA, Brexit funds and a timeframe update on when a dividend will be paid.
A copy of the Chairperson’s presentation to the meeting is attached as Annexure 3.
MINUTES OF MEETING OF CREDITORS OF: COURTENAY HOUSE CAPITAL TRADING GROUP PTY LTD(INLIQUIDATION) ACN 152 224 149 COURTENAY HOUSE PTY LTD (IN LIQUIDATION) ACN 130 607 644 HELD AT THE WESLEY CENTRE, 220 PITT STREET, SYDNEY NSW ON 31 JULY 2017
The Chairperson noted that: • The Companies were operating a Ponzi scheme. This is based
on interviews with the director, Tony Iervasi and initial forensic accounting investigations.
• Assets totalling c.$52 million have been secured. • Unsecured creditors owed are c.$197 million, being c.$29
million due to Brexit investors and $168 million due to investors in Swing, Elite etc.
• Brexit creditors are estimated at 162 with a further estimated 620 creditors in Swing, Elite etc. However, the Chairperson noted that there may be duplication due to accounts being held in Company names, personal names and SMSF.
Forensic Review/Company Records • No proper accounts were maintained. • Liquidators were required to go back to source documents
starting with bank statements to determine what had happened. • The Liquidators are currently reviewing the bank statements to
recreate the Companies financial records. • In the 3 years to 2017, there are over 10,000 line items in the
bank statements to review and code. The Liquidators will need to seek further information from the banks regarding a number of these transactions.
• The Liquidators will be required to request more information from the banks. This process does take time.
Preliminary use of Funds – 2014 to 2017 • The Chairperson presented a pie chart that showed the use of
$209 million of funds that flowed out of the Companies bank accounts in the preceding 3 years.
• 89% of these funds were used to pay investors in the form of monthly returns and return of investment capital. The Chairperson noted that this type of behaviour is representative of a Ponzi scheme.
• 1% was transferred to FX trading accounts. The Chairperson noted that this was insufficient to generate the advertised returns promised to investors.
• There were also payments to persons of interest, however due to the ongoing nature of the investigation further comment cannot be made on this issue.
MINUTES OF MEETING OF CREDITORS OF: COURTENAY HOUSE CAPITAL TRADING GROUP PTY LTD(INLIQUIDATION) ACN 152 224 149 COURTENAY HOUSE PTY LTD (IN LIQUIDATION) ACN 130 607 644 HELD AT THE WESLEY CENTRE, 220 PITT STREET, SYDNEY NSW ON 31 JULY 2017
• Only one payment of $100,000 appears to have been transferred to an overseas bank accounts from our investigations to date.
Assets Secured
• The Chairperson noted that Mr Iervasi has advised the Liquidators that there are no funds overseas and through his lawyers, he has signed a statement to this effect.
• The Chairperson then advised that Mr Iervasi had informed him he misled investors about funds being overseas as a means of appeasing investors when he is approached in public.
• Liquidators have contacted all major banks in Australia (10+) and Forex trading platforms/ brokerage houses (25+) to look for other accounts. To date no other accounts have been found other than that disclosed by Mr Iervasi.
FX Trading • It is the Chairpersons’ opinion that the Companies undertook
minimal trading. The majority of the former FX traders interviewed have advised that they would work from home and only ever traded c.$50,000 at any one time, which is significantly less than 1% of the funds under management.
• Traders would mostly lose or at best breakeven. No trader was making consistent monthly gains.
• The November 16 (US Election) and January 17 (US Inauguration) funds were never traded.
Insurance policies
• The Chairperson advised that there have been a large number of
inquiries regarding the insurance policies. The Chairperson noted that this is an area where he cannot comment as he does not want to prejudice any rights available under the policies.
MINUTES OF MEETING OF CREDITORS OF: COURTENAY HOUSE CAPITAL TRADING GROUP PTY LTD(INLIQUIDATION) ACN 152 224 149 COURTENAY HOUSE PTY LTD (IN LIQUIDATION) ACN 130 607 644 HELD AT THE WESLEY CENTRE, 220 PITT STREET, SYDNEY NSW ON 31 JULY 2017
• The Liquidators have issued correspondence to the Companies insurer notifying them of the circumstances of their appointment and taken the necessary steps to preserve their rights under certain insurance policies.
Directors Report as to Affairs
• As Director of the Companies Mr Iervasi has provided the
Liquidators with his Directors Report as to Affairs, this is a requirement of all Directors once a company goes into Liquidation. This report summaries the financial position of the company on the date of Liquidation.
• The Chairperson advised that despite the Liquidators’ requests pursuant to the Corporations Act 2001, the other recorded director based on the Companies fillings with ASIC, Mr David Sipina, has failed to submit a RATA to the Liquidators.
Interviews conducted to date The Chairperson explained one of the main focuses of the Liquidations has been finding out where the money has gone. The other key area has been talking to relevant individuals about the business. The Liquidators have completed the following interviews:
• Mr Tony Iervasi • Mr Athan Papoulias • Mr Anshul Gupta • FX traders of the Companies • However despite numerous request to date, Mr David Sipina
has declined to be interviewed.
MINUTES OF MEETING OF CREDITORS OF: COURTENAY HOUSE CAPITAL TRADING GROUP PTY LTD(INLIQUIDATION) ACN 152 224 149 COURTENAY HOUSE PTY LTD (IN LIQUIDATION) ACN 130 607 644 HELD AT THE WESLEY CENTRE, 220 PITT STREET, SYDNEY NSW ON 31 JULY 2017
Legal Action • The Chairperson advised that Liquidators hold Public
Examinations powers that can be used to gather further evidence. It is the Liquidators intention to publically examine a number of key individuals in the forthcoming months.
• Individuals will be compelled to answers questions and provide information as they will be brought before the Court where they will be cross examined.
• This, combined with the interviews and forensic analysis will determine what legal proceedings are commenced by the Liquidators to recover assets for the benefit of the investors.
• The Liquidators do not get involved in criminal prosecution. Such criminal proceedings are brought by ASIC and the Crown Prosecutor.
• ASIC freezing orders on Mr Tony Iervsi, Mr Athan Papoulias and Mr David Sipina are currently in place until 4 September 2017. It is the Liquidators intention to seek an extension to these freezing orders.
• The Liquidators are aware that the former matrimonial home of Mr Tony Iervasi was sold recently as part of a family law settlement and the net proceeds paid to his ex-wife.
Brexit
The Chairperson gave an update on the Brexit funds that have been invested.
• It is the Liquidators intention to expedite the Brexit matter
starting with an application to the Court within the next 3 weeks.
There are two scenarios with how these funds could be dealt with:
1. Funds deemed to not be held on trust and are part of a general pool to be shared by all creditors; or 2. Funds deemed to be held on trust and to be repaid back to original investors less costs of the process
• Investors will be provided with separate notice in writing on this process in due course.
• A Brexit investor has sought to commence legal action against the Companies. However, the investor will need leave of the court which has not yet been granted.
MINUTES OF MEETING OF CREDITORS OF: COURTENAY HOUSE CAPITAL TRADING GROUP PTY LTD(INLIQUIDATION) ACN 152 224 149 COURTENAY HOUSE PTY LTD (IN LIQUIDATION) ACN 130 607 644 HELD AT THE WESLEY CENTRE, 220 PITT STREET, SYDNEY NSW ON 31 JULY 2017
Liquidators’ Remuneration The Chairperson explained the remuneration process: • The Liquidators' remuneration is charged on a time cost basis. • To ensure the costs of the Liquidation are kept as low as
possible, the appropriate levels of staff are responsible for certain work streams.
• The Liquidators' remuneration is approved by either creditors, the Committee of Inspection (if one is appointed) or the Court.
• A full detailed remuneration report will be issued prior to the Liquidators seeking approval of their remuneration which will be drawn from the available assets of the Companies appropriately.
Timeframe and updates The Chairperson gave a timeframe estimate and explained when creditors would be updated during the liquidation: • It is unlikely that a dividend will be paid to the general body of
creditors (Swing/Elite etc) for at least 12 months. • It is the Liquidators' intention to expedite the Brexit matter.
However, the Liquidators are subject to the availability of the Court for approval of their proposed distribution model.
• It is the Liquidators' intention to provide creditors with updates when a significant event occurs or a milestone is reached. It is not the intention to provide monthly updates as this will only add to the cost of the Liquidations.
• To keep the cost of the Liquidation as low as possible all creditors will be provided with the same information at the same time.
Tax Issues • The Chairperson advised that the Liquidators are unable to
provide any tax advice to creditors. Please contact your own taxation accountant.
Australian Mutual Holdings • The Companies operated a registered investment scheme via
Australian Mutual Holdings in the name 'Courtenay House Capital Investment Fund'.
MINUTES OF MEETING OF CREDITORS OF: COURTENAY HOUSE CAPITAL TRADING GROUP PTY LTD(INLIQUIDATION) ACN 152 224 149 COURTENAY HOUSE PTY LTD (IN LIQUIDATION) ACN 130 607 644 HELD AT THE WESLEY CENTRE, 220 PITT STREET, SYDNEY NSW ON 31 JULY 2017
• The scheme was operated and overseen by Halifax and appears to have been registered.
• The Liquidators have been advised by representatives of Australian Mutual Holdings that the large majority of creditors whose investment was in the registered investment scheme have been contacted by Australian Mutual Holdings. However, should you believe that your holding was in the 'Registered Scheme', please contact Lilly Case at [email protected] or on (02) 9241 7959.
QUESTIONS FROM CREDITORS: The Chairperson opened the meeting to questions from creditors.
A summary of the questions raised and responses are as follows: Creditor: Justin Gale representing The Jam Investment Trust, a
creditor of Courtenay House Capital Trading Group (In Liquidation).
Question: Regarding AMH, what is Halifax's duty of care giving
an AFSL to Courtenay House? Much of their paperwork and advertising had the AMH AFSL all over it and they were representing to investors they held an AFSL. Halifax should have known that the Companies were representing themselves as holding an AFSL and most people here believed that there was a connection and that the AFSL was being used by the Companies. It appears they have just wiped their hands of it and walked away.
Answer: Courtenay House would have been aware that Halifax had an AFSL and there may have been instances where investors relied on the Halifax AFSL to give themselves confidence in investing in that scheme, a legitimate scheme. From what we can tell the scheme that related to the Halifax money was actually used for FX Trading. We do not believe that the money that went into the Halifax fund was used for the Ponzi Scheme. Creditor: Geneve Grasso representing Life Smart Retirement, a creditor of Courtenay House Capital Trading Group (In Liquidation) Question: In relation to Brexit, you continue to say that it will take 12 months and Brexit will be fast tracked and that there are two possible scenarios. The first that Brexit will go into the pool and the second that Brexit gets paid out. Reading between the lines you are looking at paying Brexit money out earlier. Going back to what was said previously; the two US trades (e.g. inauguration fund raising) that were not traded eventually become part of the Ponzi
MINUTES OF MEETING OF CREDITORS OF: COURTENAY HOUSE CAPITAL TRADING GROUP PTY LTD(INLIQUIDATION) ACN 152 224 149 COURTENAY HOUSE PTY LTD (IN LIQUIDATION) ACN 130 607 644 HELD AT THE WESLEY CENTRE, 220 PITT STREET, SYDNEY NSW ON 31 JULY 2017
Pool. Why is the Brexit money not treated therefore like the other funds? What makes it so different?
Answer: There are number of characteristics around the Brexit money that make it special to the general bucket of money that was in the Westpac account. The first is the nature of the agreements investors entered into, it also includes how that money was dealt with. Within the main general account, the Westpac account, money was coming in and out to pay general expenses such as the rent etc and pay returns to creditors as part of the Ponzi Scheme. The Brexit NAB account was very different. Looking at the other promotions that they did, it was fairly similar. They would say did you know we have a special promotion running this month. You are going to make a 15% return because of the large volatility in the FX market. If you go back they had the “Trump inauguration” and the “US Elections” promotions. The money would flow into the NAB account but it would just sit there, it was never traded at the end of the month, some investors would seek their money back and a return – other investors would roll their investment into another product. With the Brexit money the funds were still sitting in the account. This creates legal technicalities.
Follow up question: I can understand what you are saying. However I am looking at the precedence of the two previous US trades which I am presuming were transacted in exactly the same way. People took their money out and the rest of it went back into the Ponzi Pool to become part of the general transaction trading. The only difference here is the money got stopped from doing anything because of the ASIC action. I would like to know as someone who is part of the general trading who is now going to get $30 million less into the pool available for distribution, why it is not being regarded with the same intent as the two US trades?
` Answer: The reality is that scenario could be considered by the Court. I’m not saying it’s not possible, we will have to look at both scenarios, the data and evidence and put it to the Court to make a determination.
Creditor: Douglas Cotton, creditor of Courtenay House Capital Trading Group (In Liquidation) Question: I put most of money in before 1 April 2017 not in the Brexit fund but in the normal fund. I see no practical difference. Will you consider the payments that have been made to investors as returns of their capital, has that decision been firmly made? An investor that has received 90% of their money back then treated as
MINUTES OF MEETING OF CREDITORS OF: COURTENAY HOUSE CAPITAL TRADING GROUP PTY LTD(INLIQUIDATION) ACN 152 224 149 COURTENAY HOUSE PTY LTD (IN LIQUIDATION) ACN 130 607 644 HELD AT THE WESLEY CENTRE, 220 PITT STREET, SYDNEY NSW ON 31 JULY 2017
investing 10% of outstanding capital.
Answer: No that decision has not been made. It is up for consideration and discussion. The point being made by Douglas is that earlier investors in the scheme had the benefit of returns and through those returns they received an amount equivalent to their original capital. It is a contentious issue and depends on your personal position; earlier investors would still see it as their capital outstanding. We will need to look at the case law and will need to look at what precedents exist. When we get to the point to determine these contentious issues we will look at the balance of the evidence and form a view to make a recommendation to the Court. We will also give the opportunity to investors if they disagree to be heard by the court.
Creditor: Unknown
Question: Were Tony and the Directors aware that ASIC were investigating them and that the companies were going to be closed? If so, was there any investor that withdrew their money in full, within the week or so before?
Answer: My understanding is no. The ASIC investigations were done covertly. When the freezing orders were put in place they were done confidentially, so they did not have notice of it. That’s my understanding.
Creditor: Ian Hamer, creditor of Courtenay House Capital Trading Group (In Liquidation)
Question: At the moment there is a travel freeze on Tony Iervasi. I understand that you are requesting an extension of the freeze on the actual assets, but will the travel ban be requested to be extended as well? And also considering that Mr Sipina is not being helpful, we you also be seeking a travel ban on Mr Sipina as well?
Answer: The travel bans were requested by ASIC, so it is ASIC that will need to ask for them to be extended or imposed. I suspect they will ask for the travel ban to remain for Mr Iervasi. I believe he has actually surrendered his passport. I have asked him the question directly if he has another passport and he said he does not. In terms of Mr Sipina, again it is something that we can put to ASIC in terms of the travel ban but ASIC would have to show the Court that he is a flight risk to be successful.
MINUTES OF MEETING OF CREDITORS OF: COURTENAY HOUSE CAPITAL TRADING GROUP PTY LTD(INLIQUIDATION) ACN 152 224 149 COURTENAY HOUSE PTY LTD (IN LIQUIDATION) ACN 130 607 644 HELD AT THE WESLEY CENTRE, 220 PITT STREET, SYDNEY NSW ON 31 JULY 2017
Creditor: Stewart Free proxy for Sam M Jessop, creditor of Courtenay House Capital Trading Group (In Liquidation)
Question: Just in relation to your remuneration, how much Work in Progress is there currently on the clock?
Answer: c.$400,000 + gst
Follow up: Is it your intention to go to the Committee of Inspection to get that fee approval or would you go back to the general body of creditors?
Answer: If we had the committee we would in the first instance ask them to approve it.
Creditor: Janet Timberg, creditor in both Courtenay House Capital Trading Group (In Liquidation) and Courtenay House Pty Ltd (In Liquidation).
Question: Why did Westpac not look at the accounts that Tony opened when all this money came flowing in. Why wasn’t Westpac more aware of what was going on with one of their accounts?
Answer: We are actually looking at Westpac and what they should have known and what they actually did know. The examination process I touched on before will be helpful in that regards as it allows us to not only interview under oath individuals, we can also subpoena books and records of institutions or individuals to help us with our investigations.
Creditor: Luke Buxton, creditor in Courtenay House Capital Trading Group (In Liquidation)
Question: How long were ASIC covertly looking at the Companies?
Answer: I suspect it was months not weeks.
Follow up: Is that something you could find out?
Answer: I can ask and if ASIC are willing to share that information then we can put something up on our website.
Creditor: Unknown
Question: Further to the question about preferential payments, will money come back from accounts that have received more than 100% of their investment? Of the 90% of funds flowing out of the
MINUTES OF MEETING OF CREDITORS OF: COURTENAY HOUSE CAPITAL TRADING GROUP PTY LTD(INLIQUIDATION) ACN 152 224 149 COURTENAY HOUSE PTY LTD (IN LIQUIDATION) ACN 130 607 644 HELD AT THE WESLEY CENTRE, 220 PITT STREET, SYDNEY NSW ON 31 JULY 2017
bank accounts, have those transaction been traced back to actual bank accounts, so that it can be determined if preferential payments may have been made? Are there any ghost companies that might exist?
Answer: From what we can tell at this point in time we think the
majority of outflows from the bank accounts relate to payments to investors that put their money in. This is one of the reasons we want to get to the bottom of information from the banks to make sure there aren’t any ghost companies that are receiving these proceeds. From what we can tell, the majority of payments appear to be to investors. The preference payment point, Liquidators do have certain powers to claw back payments made in the 6 months leading up to the Liquidators’ appointment and in some cases can go back even further. If the Liquidators feels that one party is preferred over another then they can seek that money back. There are a number of things that need to be satisfied; one of which is the person that received the payment was aware it was a Ponzi Scheme or the Company was insolvent. At this point in time, it will be difficult to prove that the bulk of investors knew that this was a Ponzi scheme, or that the Companies were insolvent when they received their payment.
Creditor: Michael Frydman representing Gehlt Pty Ltd, creditor in both Courtenay House Capital Trading Group (In Liquidation) and Courtenay House Pty Ltd (In Liquidation).
Question: Can you give an indication of the value of assets that have been frozen against the three main people at the moment?
Answer: Difficult to say, there are a couple of assets that are relatively material, the main one that I am aware of is $1.5 million in a casino account of Mr Iervasi. There are some properties but there are mortgages against those properties therefore trying to calculate how much equity is in those properties is difficult to say at this point in time.
Creditor: David Milutin representing Milutin Discretionary Trust, creditor in both Courtenay House Capital Trading Group (In Liquidation) and Courtenay House Pty Ltd (In Liquidation).
Question: In relation to ASIC acting covertly, I’m not sure how covert it would have been. I was interviewed by ASIC and others were interviewed over the phone, some in person and I am not sure how much of that went back to the Directors. I panicked when ASIC approached me, they were unable to divulge why but I got nervous. I had my life saving invested and I grew up with
MINUTES OF MEETING OF CREDITORS OF: COURTENAY HOUSE CAPITAL TRADING GROUP PTY LTD(INLIQUIDATION) ACN 152 224 149 COURTENAY HOUSE PTY LTD (IN LIQUIDATION) ACN 130 607 644 HELD AT THE WESLEY CENTRE, 220 PITT STREET, SYDNEY NSW ON 31 JULY 2017
David Sipina. I had a meeting with Tony Ierversi to question him. He and I sat in an office somewhere in Darling Harbour and Tony told me my funds were safe and nothing has changed apart from those in the superannuation fund. If any investors did receive commissions is there a possibility of recouping those funds? If they are Directors it is probably caught up in everything else but were there any external individuals receiving commission?
Answer: Yes, there were commissions paid, they ran what was
called a partner scheme. People would get referrals for bringing in other investors. Some were existing investors; some were professional parties that ran seminars as a means to promote various products. This would have been one of the products of the day and in some instances commissions were paid. The pie chart shown earlier shows there was a portion called persons of interests, that includes some of those parties. So far we have identified $5 – $6 million over the last 2 to 3 years. However, we actually think it is a lot higher than that and as we get to the bottom of the 10,000 line items we will get a firmer view. It is one of those things that we can only say so much on without prejudicing the outcome. This is an area that we will be focusing our investigations.
Follow up: Is it illegal to receive commissions?
Answer: Not necessarily.
Creditor: Joe Barber representing Northgate Bay, creditor of Courtenay House Capital Trading Group (In Liquidation)
Question: Regarding the property where the proceeds went to the ex-wife; if that house was acquired with proceeds of crime would that not override the Family Court order and should, or can we apply for those funds to be frozen if it is determined that it is a Ponzi scheme.
Answer: Until we can work out if the house was purchased with investor money. We are unable to do anything. The gentleman pointed out the house was purchased a long time ago, over 20 years ago. All I can say is ASIC had a long hard look at this. They were the party involved in the proceedings. They decided that there were sufficient grounds to release the equity in the property to the ex-wife.
Follow up: I was at a function where Tony was talking about the investment he had made in a health app, solar roof tile company and a couple of properties he had bought around Bondi Junction.
MINUTES OF MEETING OF CREDITORS OF: COURTENAY HOUSE CAPITAL TRADING GROUP PTY LTD(INLIQUIDATION) ACN 152 224 149 COURTENAY HOUSE PTY LTD (IN LIQUIDATION) ACN 130 607 644 HELD AT THE WESLEY CENTRE, 220 PITT STREET, SYDNEY NSW ON 31 JULY 2017
He was quiet open about this. Answer: If you have any information relating to other assets and you have evidence of them please write to us so we can investigate them. One thing that we do in an investigation piece is follow the cash and we will work out where the money has gone. This is how you prove these things in Court. You cannot go to the judge and say he said this to me and I think that belongs to us please give it back. We have to follow the cash and this is a very tedious and arduous exercise but to have any chance in recoveries and to be successful, that is how we have to do it.
Creditor: Peter Samious representing Ekaton Super Fund, creditor in both Courtenay House Capital Trading Group (In Liquidation) and Courtenay House Pty Ltd (In Liquidation)
Question: In relation to Brexit any self-managed super fund should not have been allowed to invest in the Brexit component as it would have been illegal. If that is the case, where those monies accepted wrongly and then should they be returned?
Answer: At this point in time I don’t know enough to answer that question, whether it has come from a super fund, trust or individual investor, from our perspective looking at the argument of trust, it makes no difference.
Creditor: John Todaro, creditor in both Courtenay House Capital Trading Group (In Liquidation) and Courtenay House Pty Ltd (In Liquidation)
Question: If commissions weren’t disclosed were they “legal”?
Answer: It depends if they were of such a nature that needed to be disclosed. Without looking at the details it is too early to comment on that.
Creditor: Unknown
Question: Regarding the family home, although purchased long ago, when was it paid and how was the mortgage payments made?
Answer: Unsure how the mortgage was paid.
Creditor: Carmelo Stillisano proxy for multiple creditors
MINUTES OF MEETING OF CREDITORS OF: COURTENAY HOUSE CAPITAL TRADING GROUP PTY LTD(INLIQUIDATION) ACN 152 224 149 COURTENAY HOUSE PTY LTD (IN LIQUIDATION) ACN 130 607 644 HELD AT THE WESLEY CENTRE, 220 PITT STREET, SYDNEY NSW ON 31 JULY 2017 Question: There was a relationship of trust established with the
Brexit funds. The other funds are not held on trust.
Answer: I do not have a final view on whether the Brexit funds are held on trust or not. I am however going to expedite the process on making a determination on that. As previously mentioned there are certain characteristics surrounding the Brexit funds in the NAB account that are different to the Westpac account. We are going to look at those and look at both sides of the argument to ensure that when the Court is presented with the facts they have a balanced view around making a decision.
Follow up: So when you make the presentation to the Judge on
your position as to whether A or B is there a counter party to your argument?
Answer: There can be a counter party and we might facilitate a counter party to be present.
Creditor: Unknown
Question: Was it a legitimate insurance policy? Does it provide against fraud?
Answer: I can say the insurance policy is real. It is a legitimate insurance policy. I cannot comment further on the insurance policies.
Creditor: Michael Starr representing Michael and Julie Starr SMSF, creditor in Courtenay House Capital Trading Group (In Liquidation)
Question: What happens if you deposited money after the accounts were frozen?
Answer: They are in the same bucket as funds deposited prior, there is no distinction.
Creditor: Bryce Huntington, creditor in both Courtenay House Capital Trading Group (In Liquidation) and Courtenay House Pty Ltd (In Liquidation)
Question: Will the payment we have received be deducted from our capital?
MINUTES OF MEETING OF CREDITORS OF: COURTENAY HOUSE CAPITAL TRADING GROUP PTY LTD(INLIQUIDATION) ACN 152 224 149 COURTENAY HOUSE PTY LTD (IN LIQUIDATION) ACN 130 607 644 HELD AT THE WESLEY CENTRE, 220 PITT STREET, SYDNEY NSW ON 31 JULY 2017 Answer: Too early to say, whether it should or should not be
deducted. There are arguments for both we haven’t reached a decision on that.
The Chairperson drew questions to a close. COMMITTEE OF INSPECTION: The Chairperson advised creditors had the opportunity to appoint
a Committee of Inspection. (“COI”) The Chairperson explained the purpose and function of the COI
and advised a workable committee is between 4 – 6 members. It was proposed that there was sufficient interest in forming a
Committee of Inspection. Creditor: Aaron Harding
Question: Explain the difference between the two companies and is there a condition of time of investment in companies? Answer: In the committee you want a mixed group of creditors; this will create a balanced view. Happy to ask for nominees to provide details of the length of time they have invested. Creditor: Unknown Question: What is the time commitment for the committee and where will the meetings be held? Answer: Nothing set yet. The committee will meet as needed. Initially may be monthly via telephone or at the Liquidators offices. Creditor: Ben Stanton representing Stanton Ent Pty Ltd ATF Stanton Property Trust. Question: Can you be on the Committee of Inspection for both companies? Answer: Yes, if you have funds invested in both companies. Creditor: Geneve Grasso representing Life Smart Retirement, a creditor of Courtenay House Capital Trading Group (In Liquidation) Question: What is the role of the committee on deciding if the Brexit funds are pooled or not. The committee could be swayed if
MINUTES OF MEETING OF CREDITORS OF: COURTENAY HOUSE CAPITAL TRADING GROUP PTY LTD(INLIQUIDATION) ACN 152 224 149 COURTENAY HOUSE PTY LTD (IN LIQUIDATION) ACN 130 607 644 HELD AT THE WESLEY CENTRE, 220 PITT STREET, SYDNEY NSW ON 31 JULY 2017
members are not in both companies. Answer: Cannot foresee what will happen with the Brexit funds. The following persons nominated themselves to form a Committee of Inspection for Courtenay House Pty Ltd (In Liquidation).
Creditor Name Representative Michael Beiruty Himself David Milutin Milutin Discretionary Trust Vesna Mastoris Alex Mastoris Patricia DelVecchio Herself Carmelo Stillisano Trimfresh Investments Pty Ltd Heidi Postle M and H International Peter Melocco JP Meloco Pty Ltd Ryan Fisher Bently Co Pty Ltd Michael Frydman Gehlt Pty Ltd Vince Amore Oceanic Sun Group Janet Timberg Herself
Courtenay House Pty Ltd (In Liquidation) The Chairperson put the following resolution forward: “That Micheal Beiruty, David Milutin, representing Milutin
Discretionary Trust, Vesna Mastoris, Patricia DelVecchio, Carmelo Stillisano, representing Trimfresh Investments Pty Ltd, Heidi Postle, representing M and H International, Peter Melocco, representing JP Melocco Pty Ltd, Ryan Fisher, representing Bently Co Pty Ltd, Michael Frydman, representing Gehlt Pty Ltd, Vince Amore, representing Oceanic Sun Group and Janet Timberg, be appointed to the Committee of Inspection of Courtenay House Pty Ltd (In Liquidation)
Moved: Fleur Bishop
Seconded: Janet Timberg The resolution was carried unanimously on the voices.
MINUTES OF MEETING OF CREDITORS OF: COURTENAY HOUSE CAPITAL TRADING GROUP PTY LTD(INLIQUIDATION) ACN 152 224 149 COURTENAY HOUSE PTY LTD (IN LIQUIDATION) ACN 130 607 644 HELD AT THE WESLEY CENTRE, 220 PITT STREET, SYDNEY NSW ON 31 JULY 2017
Courtenay House Capital Trading Group (In Liquidation)
The following persons nominated themselves to form a Committee of Inspection for Courtenay House Capital Trading Group (In Liquidation). Creditor Name Representative Katie Peen Suxia Lin Carmelo Stillisano Kattic Investments David Milutin Milutin Discretionary Trust Michael Beiruty Himself Geneve Grasso Life Smart Trading John Todaro Himself Michael Owen Himself Ryan Fisher Bently Co Pty Ltd Michael Frydman Gehlt Pty Ltd Doug Cotton Himself Heidi Postle M and H International Luke Buxton Himself Anthony Kassis N & N Pty Ltd David Hall David Hall Investments Fleur Bishop Herself Vince Amore Oceanic Sun Group Joe Barber Northgate Aus Janet Timberg Herself
Creditor: Siraj Jamdar
Question: Can you oppose a nomination on the Committee of
Inspection?
Answer: Yes you can, you can vote each member onto the committee separately. However as the group of members is so large, can you please name the nomination you would like to have considered separately.
Follow up: Anthony Kassis
Answer: We will hold a vote for Mr Anthony Kassis first. The Chairperson put the following resolution forward:
MINUTES OF MEETING OF CREDITORS OF: COURTENAY HOUSE CAPITAL TRADING GROUP PTY LTD(INLIQUIDATION) ACN 152 224 149 COURTENAY HOUSE PTY LTD (IN LIQUIDATION) ACN 130 607 644 HELD AT THE WESLEY CENTRE, 220 PITT STREET, SYDNEY NSW ON 31 JULY 2017 “That Anthony Kassis, representing N & N Pty Ltd, be appointed
to the Committee of Inspection of Courtenay House Capital Trading Group (In Liquidation)”
Moved: David Milutin representing Milutin Discretionary Trust
Seconded: Haley Enterprises Pty Ltd. The resolution was carried on the voices.
The Chairperson put the following resolution forward: “That Katie Peen, representing Suxia Lin, Carmelo Stillisano,
representing Kattic Investments, David Milutin, representing Milutin Discretionary Trust, Michael Beiruty, Geneve Grasso, representing Life Smart Trading, John Todaro, Michael Owen, Ryan Fisher, representing Bently Co Pty Ltd, Michael Frydman, representing Gehlt Pty Ltd, Doug Cotton, Heidi Postle, representing M and H International, Luke Buxton, David Hall, representing David Hall Investments, Fleur Bishop, Vince Amore, representing Oceanic Sun Group, Joe Barber, representing Northgate Aus and Janet Timberg, be appointed to the Committee of Inspection of Courtenay House Capital Trading Group (In Liquidation)
Moved: Heidi Postle, representing M and H International Seconded: Moshe Kalfa, representing Shalom Kalfa.
The resolution was carried unanimously on the voices. The Chairperson advised that the minutes of meeting will be
lodged with ASIC and copy will be published on the GT website in 3 weeks’ time.
MINUTES OF MEETING OF CREDITORS OF: COURTENAY HOUSE CAPITAL TRADING GROUP PTY LTD(INLIQUIDATION) ACN 152 224 149 COURTENAY HOUSE PTY LTD (IN LIQUIDATION) ACN 130 607 644 HELD AT THE WESLEY CENTRE, 220 PITT STREET, SYDNEY NSW ON 31 JULY 2017 CLOSURE: The Chairperson asked if there was any further business.
There being no further business the meeting was declared closed at 4:20PM.
Recorded as a true and accurate record of proceedings. Dated this 22nd day of August 2017
SAID JAHANI
JOINT AND SEVERAL LIQUIDATOR
COURTENAY HOUSE CAPITAL TRADING GROUP PTY LTD LIQUIDATORS ACN 152 224 149
ANNEXURE 1
Attendance Register
Meeting Attendance Register - CreditorsCourtenay House Capital Trading Group Pty Ltd (In Liquidation)1st Meeting of Creditors held at Wesley Mission, 220 Pitt Street, Sydney NSW on 31 July 2017 at 2:00 PMChairperson: Said JahaniAll Creditors
Creditor Name Name of Proxy or Attorney Creditor RATA Amount
Trimfresh Investments Carmelo Stillisano or Carmelo Stillis 500000
Valerie & Keith Bradshaw 200000
Veurve Pty Ltd Phil Keenan 150000
Vince Valente 300000
Wayne Wilson 1050000
West Grubstead Trust John James 100000
Yan Wang 300000
Yuling Cao 350000
Zandra Bassille Mangoroa Hahipene 350000
Meeting Attendance Register - CreditorsCourtenay House Pty Ltd (In Liquidation)1st Meeting of Creditors held at Wesley Mission, 220 Pitt Street, Sydney NSW on 31 July 2017 at 2:00 PMChairperson: Said JahaniAll Creditors
Creditor Name Name of Proxy or Attorney Creditor RATA Amount
907 Capital trust 50,000.00
Agate 5888 Trust 50,000.00
Aji Financial Investments Murat Aji 400,000.00
Alex Mastoris Vesna Mastoris 100,000.00
Alex Ooi & Grace Lee 400,000.00
Alexandra Skoeld 50,000.00
Alison Brown 50,000.00
Andy Cotrill 50,000.00
Animo Group 100,000.00
Anna Barr 50,000.00
Anna Lee 50,000.00
Anna Ngov 50,000.00
Anna Segre 100,000.00
Anthony & Jenny Bava 100,000.00
Anthony David White 50,000.00
Anthony Kassis 200,000.00
Anthony Paul & Marian Dawson 50,000.00
Antonio & Francesca Scalici 50,000.00
Barbara Riordan 100,000.00
Bently Co Pty Ltd Ryan Adan Fisher / Tessa Fisher 350,000.00
Borrengine Family Trust 100,000.00
Brendon & Lynette Parker 50,000.00
Bryce Huntington 100,000.00
BS & BD Holdings 250,000.00
Carlos De Conceicao 100,000.00
Carmen Barbalace 50,000.00
Carrie Farrell 100,000.00
Celia White 50,000.00
CF Management Pty Ltd 1,000,000.00
Cirjak Bros Pty Ltd 50,000.00
Clarity Pty Ltd Mr Michael Starr or Mr Malcolm Robertson 100,000.00
Co Invest Aus Pty Ltd 250,000.00
Craig Boothroyd 50,000.00
DA Hall Investments 250,000.00
Darren White 100,000.00
David Donald 100,000.00
David Gillis 50,000.00
Deboah & Eugine Devizio Phil Kennan or Mary Ugarte 50,000.00
Del Vecchio Family Trust 500,000.00
Dione Angelos 50,000.00
DJ Electrical 50,000.00
Doron Koresh 150,000.00
Dr Ultimate Trust 250,000.00
DTN Exchange Trading Pty Ltd 400,000.00
Dungarve Pty Ltd 200,000.00
DW Trades 100,000.00
Ekaton SMSF Peter Samios 100,000.00
Ellarty Pty Ltd 50,000.00
Errolyn Strang 50,000.00
Evan Haugh 100,000.00
Fiachra Kirk 100,000.00
Fleur Bishop 50,000.00
Gearoid O Connor 50,000.00
Gehlt Pty Ltd 250,000.00
Geoffrey Marchant 100,000.00
Gerard & Paula Kirwan 150,000.00
Giancarlo & Sharon Libut 50,000.00
Giuseppe & Concettina Pulvirenti Sebastian Pulvirenti or Marilena Pulirenti 50,000.00
Golden Buddah Trust 50,000.00
Grant Hazell 800,000.00
Hendrik & Tharina Rabe 50,000.00
Hoe Ping Lo 100,000.00
Ian Dolan 50,000.00
Icon Security 50,000.00
Irina Shcherbakova 300,000.00
Ivanka Banach 50,000.00
J&A Developing 1,500,000.00
Jan Beach 100,000.00
Janet Timberg 100,000.00
Jason & Naomi Triplett 100,000.00
Jeffrey Yicki Wai 150,000.00
Jennifer & David Stuart Adam Cooke 100,000.00
Jennifer Lee Marsh 150,000.00
John & Anna Gregorace 100,000.00
John & Maria Hunt 800,000.00
John & Sandra Cirjak 50,000.00
John Ellison 150,000.00
John Panuccio 200,000.00
John Todaro 150,000.00
Joseph Borg 50,000.00
JP Meloco Pty Ltd 500,000.00
Julie Gorman 50,000.00
Keanen Wood 50,000.00
Leon Ryeland 50,000.00
Liane Gorman 50,000.00
Linh Lam 50,000.00
Lisa Perri 300,000.00
Liyu Zhu 400,000.00
Lotus DM Pty Ltd 50,000.00
M and H International 400,000.00
Marianne Leese 50,000.00
Marilena & Sebastial Pulvirenti 100,000.00
Mark & Susan Dzidowski 50,000.00
Mark Tobin 50,000.00
Matt Daly 50,000.00
McQueen Family Trust 50,000.00
Michael & Carol Beiruty 100,000.00
Michael Farrell 100,000.00
Michael Owen 150,000.00
Michael Russell 100,000.00
Michelle Johnson 100,000.00
Milutin Discretionary Trust 200,000.00
Mitchell Wood 50,000.00
MLC Grahame Pty Ltd 50,000.00
Mrs Garyfallia Comino 100,000.00
Mubina & Sirajuddin Jamdar 100,000.00
Nesnas Ent Pty Ltd 50,000.00
Nicola Quick 50,000.00
Nikolina Blazic 150,000.00
Nina Girsa 50,000.00
Oceanic Sun Group 6,000,000.00
Oliver Dixon 50,000.00
P&M Faga Pty Ltd 50,000.00
Pandt Group Pty Ltd 50,000.00
Paul Woodley 250,000.00
Pesce Family Trust 200,000.00
Peter Bimbi 150,000.00
Peter Teklic Susan Teklic 50,000.00
Phil Kinder 50,000.00
Pivot Fund Pty Ltd 50,000.00
Quantrum Sterling Investments 200,000.00
Ralph & Patricial DelVecchio 150,000.00
Robert Giardini 200,000.00
Robert Light 50,000.00
Robert Nahas 200,000.00
Rodgers Realty SMSF 100,000.00
Ross Blyton Ross Blyton 50,000.00
Rulai Pty Ltd ATF Rulai Trust 50,000.00
Sally Harvey White 50,000.00
Sarah Austin 200,000.00
Seasaltsurf Trust 100,000.00
Shane Peters 100,000.00
Shore Sight Pty Ltd 100,000.00
Show Manager Pty Ltd 50,000.00
Sidney & Maria Cummins 50,000.00
Stanton Enterprises Pty Ltd 200,000.00
Stark Investing Strategy Pty Ltd 600,000.00
Sylvio Pirotta 500,000.00
Tal & Berg Pty Ltd 100,000.00
Tarquin Iervasi 50,000.00
Teklic Family Trust Dubroavka Teklic 100,000.00
The Fish Trust 50,000.00
The Somerford Trust 100,000.00
The Te Family Trust 250,000.00
Timber Blair 150,000.00
TPG Trust Ben Stanton 50,000.00
Tracy Flynn 50,000.00
Trimfresh Investments Pty Ltd Carmelo Stillisano or Carmelo Stillasno 500,000.00
Trust 100,000.00
Trust A/c 50,000.00
Valerie Bradshaw 50,000.00
Vince Valente 50,000.00
Vincenzo Lisbona 50,000.00
Wishton Wish Project 150,000.00
Xavia Pty Ltd 200,000.00
Xpress International Matthew Michael 50,000.00
Yan Wang 50,000.00
Your Best Pty Ltd 100,000.00
Yuling Cao 100,000.00
Zandra Hahipene 100,000.00
Zilligent Pty Ltd 100,000.00
COURTENAY HOUSE CAPITAL TRADING GROUP PTY LTD
LIQUIDATORS ACN 152 224 149
ANNEXURE 2
Observers’ Register
COURTENAY HOUSE CAPITAL TRADING GROUP PTY LTD LIQUIDATORS ACN 152 224 149
ANNEXURE 3
Chairpersons’ Presentation to the Meeting of Creditors
Courtenay House Pty LtdCourtenay House Capital Trading Group Pty Ltd(all in Liquidation)("the Companies")Meeting of CreditorsMonday, 31 July 2017, 2.00pm
1. Welcome• Said Jahani and John McInerney were appointed Joint and Several Liquidators of the Companies on
16 May 2017 pursuant to an order of the Supreme Court of NSW.
• Said Jahani will act as Chairman of the meetings in accordance with Regulation 5.6.17(1) of the Corporation Act Regulations.
• The meetings of Courtenay House Pty Ltd and Courtenay House Capital Trading Group Pty Ltd will be held concurrently.
• The meetings have been called in accordance with the notice of meetings dated 19 July 2017, as advertised on the ASIC website on 24 July 2017.
• A quorum is present and the meetings are being held at a date, time and place convenient to the majority of creditors.
• Resolutions put to the vote will be decided on the voices (using your coloured voting cards) unless a poll is requested.
• The meetings are being recorded for ease of minute taking and a copy of the minutes of the meetings will be available on the Grant Thornton website within 4 weeks of the meetings.
2. Liquidators' DIRRI/Background of Appointment/ASIC• Reference is made to the DIRRI provided in our notice to creditors dated 19 July 2017 which was
lodged with ASIC and published on the Grant Thornton website.
• The Liquidators' DIRRI provides background on how the Liquidators were appointed in the matter. We are not aware of any reasons that would prevent us from accepting the appointment. The DIRRI is taken as read for the purposes of the meetings.
• The Liquidators and ASIC are in regular correspondence and assisting each other with their investigations to the extent that they are permitted to do so by law. Example: Under the ASIC Act 2001, ASIC is unable to disclose to any party, including the Liquidators, information they obtain via their statutory powers such as a compulsory examination of an individual.
• Despite receiving a large number of questions from creditors, the Liquidators and ASIC cannot comment on ASIC's on-going investigation as it is a confidential in nature and may prejudice ASICs on-going investigation/action.
3. Update on the LiquidationsForensic Review/Company Records
• No proper accounts maintained.
• Liquidators forced to go back to source documents starting with bank statements.
• The Liquidators are currently reviewing the bank statements to recreate the Companies financial records.
• In the 3 years to 2017, there are over 10,000 line items in the bank statements to review and code. The Liquidators will need to seek further information from the banks regarding a number of these transactions.
• The Liquidators have issued correspondence to the Companies insurer notifying them of the circumstances of their appointment and taken the necessary steps to preserve their rights under certain insurance policies.
• Due to the nature of these policies the Liquidators are unable to comment any further at this stage so not to prejudice any claim that they are able to make under the policies.
FX trading
• The Companies undertook minimal trading. Most of the former FX traders we interviewed have advised that they only ever traded c.$50,000 at any one time, which is significantly less than 1% of the funds under management.
• The November 16 (US Election) and January 17 (US Inauguration) funds were never traded.
3. Actions undertaken to dateDirectors Report as to Affairs – Tony Iervasi
Category CHCTG (AU$) CHL (AU$)
Sundry Debtors 580,000 Nil
Cash at Bank 50,000,000 Nil
Plant and Equipment 5,000 Nil
Other Assets 1,600,000 Nil
Total Assets 52,185,000 Nil
Assets subject to charges (Motor Vehicles) 150,000 Nil
Amount owing under charges (Motor Vehicles) (100,000) Nil
Unsecured Creditors (198,000,000) Nil
Deficit (145,765,000) N/A
• Despite the Liquidators' requests pursuant to the Corporations Act 2001, the other recorded director based on ASIC filings of CHCTG, Mr David Sipina, has failed to submit a RATA to the Liquidators. Mr Sipina denies he was a director.
• Liquidators Public Examinations planned to gather further evidence.
• This will determine what legal proceedings are commenced by the Liquidators to recover assets for the benefit of the investors.
• The Liquidators do not get involved in criminal prosecution. This is done by ASIC and the Crown Prosecutor.
• ASIC freezing orders on Mr Tony Iervsi, Mr Athan Papoulias and Mr David Sipina - 4 September 2017. Extension will be sought.
• The Liquidators are aware that the former matrimonial home of Mr Tony Iervasi was sold recently as part of a family law settlement and the net proceeds paid to his ex wife.
• Expect Brexit funds position to be resolved in not less than 3 months starting with an application to the Court within the next 3 weeks to start the process to resolve the treatment of the Brexit funds.
• Liquidators have made a decision to expedite the matter and deal with it separately although this was add extra cost.
• A Brexit investor is seeking to commence legal action against the Companies. The investor will need leave of the court which has not yet been granted.
• Two scenarios:
1. Funds not held on trust and are part of a general pool to be shared by all creditors; or
2. Funds held on trust and to be repaid back to original investors less costs of the process
• Investors will be provided with separate notice in writing on this process in due course.
3. Update on the LiquidationsLiquidators' remuneration
• The Liquidators' remuneration is charged on a time cost basis.
• To ensure the costs of the Liquidation are kept as low as possible, the appropriate level of staff are responsible for certain work streams.
• The Liquidators' remuneration is approved by either creditors, the Committee of Inspection (if one is appointed) or the Court.
• A full detailed remuneration report will be issued prior to the Liquidators seeking approval of their remuneration which will be drawn from the available assets of the Companies appropriately.
3. Update on the LiquidationsTimeframe and updates
• It is unlikely that a dividend will be paid to the general body of creditors (Swing/Elite etc) for at least 12 months.
• It is the Liquidators' intention to expedite the Brexit matter. However, the Liquidators are subject to the availability of the Court for approval of their proposed distribution model.
• It is the Liquidators' intention to provide creditors with updates when a significant event occurs or a milestone is reached. We will NOT be providing monthly updates as this will only add to the cost of the Liquidation.
• To keep the cost of the Liquidation as low as possible all creditors will be provided with the same information at the same time.
• The Liquidators are unable to provide any tax advice to creditors. Please contact your own accountant.
3. Update on the LiquidationsTax Issues
Australian Mutal Holdings
• The Companies operated a registered investment scheme via Australian Mutual Holdings in the name 'Courtenay House Capital Investment Fund'.
• The scheme was operated and overseen by Halifax.
• The Liquidators have been advised by representatives of Australian Mutual Holdings that the large majority of creditors whose investment was in the registered investment scheme have been contacted by Australian Mutual Holdings. However, should you believe that your holding was in the 'Registered Scheme', please contact Lilly Case at [email protected] or on (02) 9241 7959.
• All creditor notifications/documents: https://www.grantthornton.com.au/en/creditors-information/creditors-information-a-f/courtenay-house-capital-trading-group-pty-ltd-in-liquidation/
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