Valedictory to Colin Currie This month I want to start by paying tribute to my late friend Colin Currie who died this month of cancer. Colin was my collaborator in the discovery of “Operation Allsorts” which turned out to be the biggest fraud investigation ever carried out in New Zealand. Colin Currie was already well ahead of me in the investigation when I joined forces with him in 2000 to investigate the investment and financial schemes of the solicitor, Ray Harris and the other associates Miles McElvey and Murray Osmond. Their various schemes turned into about 26 convictions including six solicitors, four accountants and many other business people in financial and real estate circles. Colin was a very diligent forensic accountant who continually embarrassed the establishment with his discoveries. He will be missed by his lovely family and grandchildren as well as those who have to struggle on with the unfinished investigations he started.
Mad names sometimes a clue? How anybody could have invested money or their livelihood with a company called “Pennies from Heaven Limited” was always a concern to me, but this year of course we have moved into “la la land” properly with a man called “Made Off”. (Bernie Madoff of New York who has moved into first place with his ridiculous Ponzi fraud). “Blue Chip” investments urggh! Definitely in the “too good to be true” camp.
Is there any similarity between Bernie Made Off and the mad schemes of “Operation Allsorts”? There certainly is. The people investing their money did not pay proper attention as to where their property and/or money was going to go, and the regularity bodies were asleep.
If you have been touched by any of the dud investment schemes which have now cost New Zealanders over $6.5 billion and rising, then get in touch with me as I can direct you to specialist accountants who can assist you in assessing your taxation claims. You may be able to claim some losses.
What do we learn by “Operation Allsorts”, Bernie Madoff, Enron and Fannie Mae? The short answer is, never rely on the institutional safeguards, securities commissions, stock exchange examiners etc. Over the years they have proved to be completely and utterly inadequate, scared to stand up and say “the King has got no clothes on”. For instance there were 150 people involved in the regulation of Fannie Mae and yet the ridiculous excesses of that lending institution led it to an inevitable disaster. In many areas there is still no sign of the stopping of the decline in values. Obviously some areas will rebound, but others will be changed forever. The task for financial advisers is to be able to determine who will survive, and what are the new rules?
An interesting scene is arising in the Kiwisaver Funds, as for the last year the returns (growth) of various Fund Managers have ranged from ASB First Choice at -23.37% to Huljich Growth at -3.68%. Yes I know it has been the worst twelve months in the last hundred years, but why aren’t they following their own conviction and buying shares for the long term benefit of the investors? Well they are not, because they are scared stiff, and it is not good propaganda on the annual scene to have appalling growths in the minus figures.
There is now no such thing as “the market”. There are now markets within markets and South Canterbury may have a completely different market to Auckland. Micro economics and macro economics have never been so intriguingly mixed up. It is my task to sort through the chaff and come out with the winner to get through what is obviously a systemic failure of the world economic scene.
New investments for 2009/2010. I am now sorting through some New Zealand property investments which in my opinion will be as safe as you can find, well managed, well tenanted, good locations and with returns varying between 8 and 10%. Many of these investments are syndicated properties in which the secondary market of being able to move in and out of these syndicated ventures has now become more sophisticated. There are no recourse guarantees, the fees for the change and shifting in and out are minimal and I provide due diligence services in respect of the inspection of the management, properties, tenants etc for people intending to go into and out of this market.
You can join this market for as little as $50,000, and it well behoves trusts to look at these closely, as they tick all the boxes in the prudent trustee regime
