Centuria Capital (CNI.AX) runs a crossholding scheme whereby a web of subsidiary funds hold stakes in each other, performing circular transactions deliberately creating falsified NTAs and results. The footnotes to the CNI annual report reveals dozens of festering CNI funds "investing in" and "lending to" each other.
CNI holds 2.1m units of the Centuria Direct Property Fund (CDPF), while subsidiaries Centuria Income Accumulation Fund (CIAF) holds 6.9m units and Centuria Growth Bond Fund (CGBF) holds 9.8m units. CGBF holds 1.7m units in Centuria 10 Spring St Fund (CSSF), 11.1m units in Centuria Diversified Property Fund (CDVPF), and 1.0m units in Centuria 8 Australia Avenue Fund (CAAF). Centuria Property Funds (CPF) holds 2.9m units in CSSF, Centuria Balanced Fund (CBF) holds 0.7m units in CSSF, Centuria High Growth Fund (CHGF) holds 0.7m units in CSSF, Australian Property and Mortgage Bond Fund (APMBF) holds 1.1m units in CSSF. CNI has "invested" $5.8m in CIAF, which in turn has "lent" $5.7m to Strategic Property Holdings (SPH) and $8.9m to Centuria 4-8 Woodville Street Fund (CWSF). CNI has a $1.0m receivable from CDVPF, $1.2m from CBGF1, and $0.3m from SPH. CPF has a $1.9m receivable from CSSF. CGBF bought 3.1m units in Centuria 131-139 Greenfell Street Fund (CGSF) at a "market" price from a related party.
http://www.asx.com.au/asxpdf/20131028/pdf/42kcsnx1fkxrfw.pdf
ASIC of course does absolutely nothing to stop crossholding and related party transaction fraud, provided the right forms have been filled in, but instead legitimizes and protects the criminals.
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