Citigroup has created products specifically for the Australian Foundation Investment Company scam, designing the products to the specifications of the criminals, fully aware that the products were to be used for securities fraud. Citigroup provides leverage for the scam, further deferring liabilities of these already catastrophically underfunded schemes, increasing losses to granny investors that already run into the billions. Citigroup has created a series of warrants for these companies, while being aware of their deliberate overvaluations, accounting fraud and ramped share prices. These warrants are not widely advertised by Citigroup, which understandably does not flaunt its involvement in multibillion dollar asset-backed securities fraud.
Used by the criminals and pushed by associated advisors, these products are often sold on the basis of ongoing tax minimization.
AFI and its associate criminal listed investment companies have fraudulently inflated their NTAs with ramped assets, crossholdings and accounting fraud doublecounting investments. They have then manipulated their share prices to up to 30% over even these fraudulent NTAs, issuing millions of shares to granny investors at the purposefully inflated prices. Pension savers think that they can cash out at the prevalent 'market' price at any time, while the scam in aggregate actually is underfunded by billions of dollars, granny investor funds that are lost forever, something which will be discovered the moment people try to cash out. The criminal LICs rationalize this by predicting eternal fund inflows, in which scenario their schemes actually do work, like any ponzi.
Citigroup has helped with this fraud of asset-backed securities, knowing the securities were fraudulent, but still designing and selling derivatives based on them, adding a derivatives bubble to an existing ponzi. Citigroup obviously is entirely fearless of the prospect of multibillion class action lawsuits when grannies find a quarter of their funds in these schemes were missing the entire time. As a mathematical fact, the AFI/DJW/MLT scam depends on continued net fund inflows, from granny suckers or debt, otherwise the price could not be held manipulated 30% above NTA. The question is how far this goes up Citigroup management. Is it only Citigroup Australia which is complicit, or is the head office aware of this securities fraud?