The Custom House Capital Ponzi.


#41

There was a tip off and a review that didn’t spot a Ponzi scheme.

It should be career ending for all involved.


#42

Your naivety is quite touching in a cynical place like this.


#43

So cynically predictable that they would appoint KPMG as liquidator even after their report didn’t spot the fraud.

A nit picking mid range guy would crawl all over this for the same money and quality.

Has Saint Matthew Elderfield any comment on all this?


#44

Sounds more like theft than a ponzi tbh.

Courtesy of a Slasher link

ft.com/intl/cms/s/0/510c4502 … z1bS2SxFEl


#45

I think according to the 6pm news the MAX you are covered for is €20k and the minumum investment was about €250k so this is going to leave a few high net worth individuals feeling very very sick tonight


#46

This story makes my blood boil. In Feb 2009, a whistleblower who worked for CHC approached the Financial Regulator with details on the many financial irregularities in the company:

Substantial debts, loan repayments due and a portfolio of grossly overvalued European property

Investments in Syndicated Property Funds and cannot meet the schedule of payments to developers

Millions in outstanding bank loans to Irish and UK banks that did not appear on the company’s balance sheet in breach of financial, company and audit regulations

Millions owned in commission payments to brokers who referred clients to their worthless investments

Rents are being paid on their properties, payments are not being made into pensions funds and failure to take action on investors who have pulled out of property purchase obligations and of which CHC now have to take ownership

In breach of several laws, including section 52 of the Stock Exchange Act, 1995 which requires brokers to lodge client funds to client accounts which they have not done. They were 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. CHC’s profits dropped from €1 million to €20,000 in 2009

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.

The person who met the whistleblower is the one who signed the self-serving affadavit listed earlier in this thread.

For 32 months the Financial Regulator did nothing and let investors lose even larger amounts of money. The Financial Regulator is immune from prosecution regarding failures of regulation. This is typical of our incompetent public service who can so manifestly fail to do their jons and then suffer no accontability or be held responsible for the consequences of their laziness and stupidity. No one will be sacked.

Maybe the investors can seek to sue KPMG who audited CHC in Feb 2009 and found none of the problems that are now so apparent.

The investors’ choice of Lavelle Coleman is a very poor one. They have been acting for homeowners affected by pyrite with no tangible results.

irishtimes.com/newspaper/fin … 92104.html

They milked nearly 11 million in legal fees from the Residential Institutions Redress Board and much more from the Commission to Inquire into Child Abuse.


#47

This seems to be at least 4 times bigger than W&R Morrogh which was a huge story at the time.
en.wikipedia.org/wiki/W_%26_R_Morrogh

That was fraud.

This appears to be paying some investors profits and capital with other investors capital. Seems like ponzi to me.

If they’d chosen an ambitious mid sized insolvency professional who wants to make his name he might have sued the Regulator. :nin


#48

This is not the only Ponzi that KMPG ‘audited’ and found to be compliant with KPMGs own lax standards.

The reputational risk for Ireland is that all of the out so called ‘big 4’ auditors are irredeemably stained by the scams they audited over the period between 2004 and 2010.

Now the state is deliberately bailing these cunts out by rigging consultancy work with the DoF, the CB and NAMA so that only these wasters can get contract and consultancy work…the better to enable them to hide their past mistakes I should think.

The state is being run by a small cabal of incompetent unaccountable and parasitic gougers in South Dublin…that is Lennys legacy.

KMPG in a properly functioning legals system should be sued out of existence and the persons who signed off on the Custom House Ponzi ( given the specific information they had from the whistleblower) should all be struck off as accountants. :frowning:

And we haven’t even started on the €3bn-€5bn of taxpayers money scammed by the pensions industry Ponzi every year. :nin


#49

Who else should turn up in the CHC scandal other than John Caldwell - associate of Liam Lawlor and Frank Dunlop, both FF hacks - and corrupter extraordinaire. Just follow the Carrickmines thread covered elsewhere.

This is the same John Caldwell who is married to an eminent Senior Counsel who acted for Fianna Fail in the Moriarty Tribunal. She also served on the Pensions Board which will give her a unique insight into how people who have invested in Non-Standard Personal Retirement Savings Accounts (PRSAs) with them are now totally fucked.

All roads lead to Fianna Fail.


#50

irishtimes.com/newspaper/fin … 97252.html

Now try to remember that they were dipping into their funds at this time


#51

KPMG didnt audit CHC :unamused:

The report is here btw. If you read it you will see it wasnt a Ponzi. It was largely misappropriation of client funds to funds property investments. centralbank.ie/press-area/pr … ebsite.pdf


#52

So KPMG didn’t do the audit, correct?

Still, there’s always this, which was posted on FT Alphaville:


#53

You can roll your eyes all you want. They were not the statutory auditor. It worse than that. It looks like a highly expensive, failed forensic investigation.

And the Judge read it, his conclusion.

irishtimes.com/newspaper/fin … 97214.html

Page 23 of the Central Bank. I couldn’t be arsed reading that turgid arse covering shite

Translation?
Teeming and Lading/Ponzi


#54

That stuff is dynamite, if true.


#55

It’s even worse than a Ponzi as it illicitly took money from people who weren’t investing in anything other than cash (low, low risk - low, low return) and used it to carry on the pretense of a working high risk, high return scheme. Normally in a Ponzi scheme the projected rates of return do at least warn that you might be engaging in something risky…


#56

I said KPMG ‘audited’ rather than KPMG audited. They were brought in for a second opinion akin to an audit. Yes it should have been forensic and I am sure they charged generously.

Custom House dipped into all sorts of client funds including ones they held rather than managed as such…eg self directed Pension Funds. And yet KPMG found nothing which is quite astonishing.


#57

Apparently Saint Matthew of Elderfield has ordered an internal inquiry on the performance of his organisation. We can judge the size of his gonads by the actions he does, or does not, take regarding the gross incompetence of his organisation.

However, I would not expect any significant action, given that KPMG were appointed as receivers to CHC. So having manifestly failed to spot a massive and pervasive fraud nearly three years ago they now get to cover up their fuck-up.

During their first audit, they did not even bother to speak to the whistleblower to get an indication of where to look.

The relationship between the regulator and KPMG is clearly unhealthy. Their involvement in further work should have been suspended pending the results of the inquiry.

If I was an investor, I would seek to sue the arses off KPMG given that clearly KPMG could not find their own arseholes with a team of auditors and a GPS.

Finally, most of the 1,500 investors who will have loss money will not have been the so-called “super rich”. They will have been fairly ordinary individuals who took what they regarded as low-risk actions regarding investments.


#58

No moral hazard there :smiley:


#59

None at all. I expect KPMG to do the finest possible job.

Of arse-covering that is.

Come on Saint Matthew, step in here and sack these fuckers.


#60

The real problem here is that the CB did establish what was going on in 2009 - ie clients funds were being misappropriated for property investments but their solution was not to step in at the time, rather they were instructed to pay back the “bridging finance” when investors were found for the property. It is rather deftly covered in the first affidafit to the HC.

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