Tuesday, 28 January 2014

Gleneagle Securities helps Avestra embezzle pension funds

The mysterious Gleneagle Securities is a one-stop shop for financial crime, providing a front for pesky disclosure documents, performing sham transactions, ramping shares with algo trading, and circumventing laws designed to protect minority shareholders. The fraudulent activities of the Gleneagle criminals span decades, with its management involved in the sham transactions of Tricom in the Opes Prime debacle. These sham "special crossings" were later, astoundingly, deemed not criminal on appeal. Hilariously, the court opined that even if the sham transactions were criminal, a ban on the criminals would just be so "disproportionate".


Gleneagle then "underwrote" AJ Lucas's (AJL.AX) catastrophic capital raising in 2011, reaping a fee from the company's shareholders, despite not actually committing to underwrite any shares. In an open breach of fiduciary duty the criminal management of AJL did nothing to protect minority shareholder rights during this fraud. Naturally, there were no repercussions whatsoever for the well-connected criminals who perpetrated these crimes in plain view, because 'fiduciary duty' is treated like an absolute joke in Australia.


The journalist in the article above is not the only person with difficulty finding information about this enigmatic organization. The Gleneagle website is remarkably terse concerning who actually backs the company, and Gleneagle seems consistently unenthusiastic to discuss its "deals" in public.


This reticence is perhaps understandable given that Gleneagle is involved in some of the most egregious frauds in Australia. Gleneagle is associated with the circular investment scam Avestra Asset Management, that has recently embezzled millions from granny investors by moving entrusted money into "investments" in related party funds.


Crossholding fraud Hudson Resources (HRS.AX) recently hired Gleneagle to conduct its share buyback. Gleneagle also acts as a front in numerous other vehicles of securities fraud, many of which have no operational activities. Needless to say, every single enterprise that associates with Gleneagle experiences subsequent catastrophic shareholder value destruction.

These are not accidents or magical market mysteries. Facilitating this wealth transfer (a.k.a. theft) from shareholders to insiders is exactly what Gleneagle gets paid for. Gleneagle is also involved with RAPA Cap Intro, a hare-brained scheme whereby Gleneagle wants an ongoing cut for "introducing" mysterious capital to amateur daytraders. Gleneagle associates spruiked this scheme on trading forums, in the process eating some truly epic smackdowns, in a manner redolent of the Formosa Auto-Trade scam.


RAPA was next heard of in August 2013, on a blog started by a "journalist" at Australian Financial Review, who disconcertingly seemed unable to use even basic punctuation while pumping the RAPA scheme.


The most hilarious part of this blog? The "journalist" learning to be a millionaire trader from the RAPA geniuses had to pay a "commitment fee". RAPA made AFR pay to pump their scheme. But if the RAPA geniuses make such fantastic returns, why would they share their invaluable secrets for a "commitment fee"?

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