Fund associates of the cartel include Acorn Capital and a group of Australian listed investment companies headed by Australian Foundation Investment Company (AFI.AX). These funds cooperate with the Catcha Group criminals to ramp the tightly held shares of the ASX-listed cartel companies IPP/ICQ/IBY, generating unrealized profits for the funds involved. The fund operators charge real cash fees based on such fraudulently engineered unrealized profits. Since inception, IPP has been ramped 15X and ICQ has been ramped 7X. In the last year alone, IPP has been ramped four times over, ICQ has been ramped three times over, and IBY has almost been doubled.
This leads to commensurate unrealized profits for cartel fund associates AFI, Mirrabooka Investments (MIR.AX), Contango Microcap (CTN.AX) and Acorn Capital. For some of these fraudulent investment companies, this scam alone accounts for a significant proportion of their yearly (unrealized and fraudulent) profit. IPP has now been ramped to the point of inclusion in the S&P ASX 300 index, allowing the criminals to pass off some the junk cartel assets to funds that are mandated to purchase such indices. The annual reports for the cartel companies contains sundry other accounting fraud. In note 23 of its inaugural financial statements, IBY reports the following goodwill for the related party "assets" it purchased in late 2013:
- $23.8m goodwill for Buy Together Hong Kong, an "asset" contributing a $141K loss for the period.
- $40.6m goodwill for Dealguru Holdings, an "asset" contributing a $244K loss for the period.
- $12.1m goodwill for Dealmates, an "asset" contributing a $29K loss for the period.