Carlton Investments (CIN.AX) and Amalgamated Holdings (AHD.AX) have built up crossholdings approaching a billion dollars, separating ownership and control, allowing the companies to manipulate their own share prices and present deliberately falsified annual reports. CIN and associates hold 35% of AHD shares, while AHD and associates hold 61% of CIN shares. The combined crossholding has a nominal value of $868m, constituting 44% of CIN's and AHD's combined market cap. CIN and AHD also have substantial crossholdings with fellow criminal investment companies AFI, MLT, ARG and WAM.
Buried in the notes of its 2013 annual report, with next to no detail provided, CIN discloses inter-company loans totalling $158m, up from $148m in 2012, that it eliminates upon consolidation. These $158m loans are apparently of zero interest to an investor wishing to build a fair view of the company. Some of the loans are taken out by Eneber, the controlled investment vehicle that owns much of CIN. So CIN has taken out a loan from itself, and used the proceeds to buy itself.