CVC Limited (CVC.AX) uses crossholdings, related party transactions, revaluations, "loans" and write-offs for the purpose of securities fraud. CVC ramps the companies it has significant interests in, creating artificial unrealized profits that never translate to cash flows. Directors of this scheme were recently arrested for tax fraud. Ripping off granny investors is fine, but don't dare deprive the taxman of his cut of the loot, or you might actually be arrested.
CVC's recently released annual report is a marvel of creativity, giving almost no indication of what the company actually does, instead showing a fudged profit driven by assorted revaluations ($21m), recoveries ($11m), impairments ($12m) and related party transactions. The company has $13m of loans to related parties that are periodically written off, and books $6.7m simply as "All other expenses". CVC reports $88m sales of goods, with no further details whatsoever provided.
CVC holds a number of listed and unlisted investments that it revalues at will. In its annual report, CVC notes that several of its listed investments are too illiquid for market prices to be useful for valuation, and then proceeds to use them anyway. CVC's portfolio of lossmaking companies include BNO.AX, VLW.AX, VSC.AX, LNR.AX, RES.AX, CYC.AX, MNZ.AX and BRU.AX. These have been ramped significantly since July 2013, which will allow CVC to claim further imaginary profits.