Co-Investor Capital Partners is a criminal investment company that manipulates the share prices of the chronically underperforming companies held by its various funds. Co-Investor owns at least 78% of Digital Performance Group (DIG.AX) according to disclosure documents, with the top twenty shareholders of DIG holding 91%. Over the last decade, DIG has a consistent track record of losses and shareholder value destruction, while issuing close to a billion shares. This is an almost comically poor company.
But DIG's catastrophic operational performance is irrelevant, since DIG is simply a vehicle for securities fraud. Co-Investor associates have been installed as management, reaping several million dollars a year from the failing company. Co-Investor currently controls the "market" price of DIG, intermittently ramping the price to create unrealized profits and to provide opportunities for insiders to cash out. In October 2013, Co-Investor and its accomplices ramped DIG sixfold, after issuing free "performance options" to insiders.
According to ASIC, this is not a ramp because ramps don't exist. According to ASIC, this is just a magical market mystery, an inexplicable and marvellous occurrence. Therefore, ASIC needs to take no action about this securities fraud, and Co-Investor Capital Partners can continue falsifying its accounts to attract new granny investor victims for its funds. Naturally, the long-term performance of DIG follows the standard Australian pattern for manipulated companies, namely long-term catastrophic shareholder value destruction interspersed with sharp ramps to benefit insiders. Co-Investor's other "strategic block investments", such as Eureka Group Holdings (EGH.AX), follow the same exact pattern.
In August 2013, the Co-Investor criminals announced they were looking to perform sham transactions between their owned companies, creating crossholdings to inflate book values. This related party fraud would see DIG acquire several of the other failing "investments" held by Co-Investor funds, using its ramped shares as payment.
ASIC freely allows circular investment cartels to defraud granny investors and protects the criminals. At this point, ASIC can no longer can be construed as merely incompetent, but must be regarded as treasonous.