Monday, 27 January 2014

Thorney Opportunities (TOP.AX) insiders frontrun

Thorney Opportunities (TOP.AX) is a newly launched revaluation fraud and part of a circular investment cartel. The fund "invests" in securities the cartel can directly move the price of, fraudulently manufacturing unrealized profits, with its wealthy backers given insider information of the cartel's ramps. The cartel also "invests" in the businesses of its wealthy backers, with this quid pro quo flagrantly breaching fund fiduciary duty. This is what passes for successful "investing" in Australia, having a "Gentlemen's Club" with ability to manipulate chosen investments temporarily higher. When such cartels ramp illiquid related party smallcaps by buying 30% of outstanding shares, this is euphemistically referred to as "shareholder activism" by the shills. TOP used its connections to set the Sydney Morning Herald shills into overdrive, with the practitioners of this most ancient profession writing several articles a day pumping the scam on the newspaper's front page.

The poorest investments, illiquid shares with years of losses and previous shareholder value destruction, are the best targets for ramping. The same amount of money spent by the cartel to ramp a large liquid stock by 0.1% could be used to ramp a small failed illiquid stock by 100%, yielding commensurately larger unrealized profits. Even before the TOP cartel officially took over Wentworth Holdings (WWM.AX), the cartel and WWM were criminally engaged in attempts to inflate WWM's asset base by ramping its main "investment" in Australian Renewable Fuels (ARW.AX), in the process breaching the Corporations Act.

Naturally, ARW follows the standard Australian pattern of manipulated stocks, namely long-term shareholder value destruction interspersed with temporary sharp ramps engineered to benefit insiders.

Both TOP and its "investments" currently have their share prices set by the cartel, and not by the "market". Until the next time TOP approaches granny investors for more money, its "performance" will be entirely engineered by the cartel. TOP will then issue shares based on fraudulent performance metrics and inflated book assets.

The first official "investment" and share ramp for the cartel was troubled telecom Service Stream (SSM.AX). Having tipped off newspaper shills and insiders in advance, on 24 January 2014 the TOP cartel announced an investment of up to $20m in SSM and immediately ramped its share price 24%, creating instant unrealized profits out of which the scheme operators can charge real cash fees.

Cartel insiders frontran the SSM investment by making prior purchases, as is the custom for such criminal enterprises. A cartel associate and major TOP backer built up a 5.8% stake in SSM, with 10m shares purchased on 25 October 2013 by Rubi Holdings Pty for $1.8m. This October 2013 purchase was, purely coincidentally of course, five times a large as any previous SSM purchase made by Rubi Holdings.

After the TOP cartel ramped SSM's share price, the cartel associate made an instant 24% gain by this frontrunning, yielding a risk-free $750,000 return.


  1. But isn't Alan Kohler some kind of financial expert?

    1. Yup and according to the experts, buying 30% of shares outstanding does not affect their price, the hallmark of a great "investor" is connections, and ramps are just magical market mysteries.