The Custom House Capital Ponzi.


#1

irishtimes.com/newspaper/fin … 83656.html

Don’t like the look of this.

The typical stable door bolt horse type of thread has appeared on AAM as is de riguer with every 2 bit scam in this country . Naturally AAM have long deleted half the posts in the thread and it reads like crap :frowning:

askaboutmoney.com/showthread.php?p=1134028


#2

independent.ie/business/iris … 29512.html

Heading for 1500 staff and they still need “support”.
They don’t have their own in-house forensic IT and forensic accounting departments?


#3

Uploaded the accounts to March 10 and annual return to Scribd

scribd.com/doc/60214444/Cust … n-Mar-2010

scribd.com/doc/60214453/Cust … nts-Mar-10

Love the principal risks and uncertainties in the directors’ report

A quick look through John Mulholland’s other directorships show a lot of companies that seem to have been allowed to be struck off through not filing accounts or annual returns.


#4

A couple of things strike me about this

  1. The central bank seems to have no capability to copy a server without help from a professional services firm. It’s not the end of the world in itself. But still WTF!!!

I wonder who did the “origination” if that’s the right word for these property purchases - Who picked the properties, who hawked them and got Irish funds to buy them?
It seems that even if Irish property prices stayed static at 2007 levels a lot of the Irish domestic wealthy people would have been screwed by disastrous foreign property forays.


#5

A whistleblower from this organisation allegedly contacted IFSRA nearly two years ago about misappropriation of client monies and was rebuffed.


#6

The very excellent Kathleen Barrington has been highlighting the tricky business going on at CHC since last year - sbpost.ie/themarket/custom-h … 57070.html

This kind of statement from an auditor does not sound good at all.

More here.


#7

CBFSRAI first called in KPMG in Feb 2009 to perform an inspection after being of problems with CHC.

After spending 6 months racking up billable hours on the tax payer, KMPG gave CHC a clear bill of health without discovering any of the problems.

Neither CBFSRAI nor KPMG spoke to the person who originally informed them of the problems to understand where to look.

It is only after Appian took over part of CHC’s portfolio and discovered the extent of the black hole that CBFSRAI got involved.

Yet another success for the grossly incompetent financial regulator. 1,500 staff - you will be able to hear the sounds of collective hole scratching for miles.

Anybody fancy submitting an FOI request to CBFSRAI for a copy of the 2009 KMPG report?


#8

This was the one that got my trigger finger twitching:

that would have had me looking for a considerably less bent accountant !

We’ve seen some of the Lawyers get found out; I wonder if we’ve yet to see the little tricks the accountants have been up to ?


#9

Two of the principals casting the fly in 2008.


#10

Nice find!
Where have I heard that voice before :smiley:


#11

Nice. :smiley:

100% effective leverage then in a lot of cases. Sweet and tax efficient (hat tip to Brendan)

independent.ie/business/iris … 21658.html


#12

Burgess was an absolute trooper for pimping them interest only mortgages for tax reasons all right, shame the standard 5 year IO periods ran out last year or this year latest for most of them and tipped the people who took his advice on AAM over the edge…and now he is trying to get them sorted for some class of easy bankruptcy without apologising for the crap advice in the first place.


#13

irishtimes.com/newspaper/fin … 62969.html


#14

Which piece perfectly descrbes…

…a Ponzi scheme.


#15

I know that the failure of regulation represented by this is very small when compared with the spectacular incompetence demonstrated by the financial regular in relation to banks.

However, given that CB/IFSRA was it was then were explicitly told about this over 2 1/2 years ago and yet managed to do nothing really demonstrates their utter fucking uselessness.

KPMG were sent in 2 1/2 years in investigate matters and found none of this.

The €1.5 billion worth of assets they manage, mainly on behalf of individuals, is at risk. Many people have invested in Non-Standard Personal Retirement Savings Accounts (PRSAs) with them.

It is being crushed under a weight of debts, loan repayments due and a portfolio of grossly overvalued European property. CHC is sitting on a pile on European property whose values have dropped 40% or more.

They have invested heavily in Syndicated Property Funds and cannot meet the schedule of payments to developers.

For example, they have collected around €30 million for their investment in the Parkstadt Centre in Munich . (chcam.ie/index.php/news/6/15 … 28-05-2008) but have only transferred a small amount of this to the developer. They are incurring substantial penalties for not making their scheduled payments.

They have millions in outstanding bank loans to Irish and UK banks. Note that some of these loans do not appear on the company’s balance sheet in breach of financial, company and audit regulations.

They owe millions in commission payments to brokers who referred clients to their worthless investments.

In many cases rents are not being paid on their properties, payments are not being made into pensions funds and they have failed to take action on investors who have pulled out of property purchase obligations and of which CHC now have to take ownership.

The company is in breach of several laws, including section 52 of the Stock Exchange Act, 1995. This required requires brokers to lodge client funds to client accounts which they have not done. They are moving money between accounts without notifying investors.

Companies such as Custom House Capital are required to submit monthly reports to the Financial Regulator on areas such a profitability and liquidity.

Millions will be lost by holders of PRSAs.

Will anyone from the regulator be sacked for this failure?

Will KPMG return the payments they received from their incompetent work?

Will KPMG be barred from future involvement because of their incompetence?


#16

The answer to that is similar to CJH’s response to “Will I get a receipt”.


#17

I think that was Mick Bailey!


#18

I am sure CJH thought of it first :slight_smile:


#19

The taxpayer should step in to save this systemically important institution and refund investors’ losses on property deals - it’s only right and fair. Investors are entitled to make a profit on property investments, it’s not their fault the market went down.


#20