The Custom House Capital Ponzi.


Well now, that’s VERY deftly put. I don’t want the arse sued off me but that sworn affidavit to the High Court from a Central Bank employee is missing a few clauses from that particular sentence. Maybe they’re referred to elsewhere in the affidavit.

“No further Monies were ‘put into’ the Mezz Bond Fund”… whose money?.from where? by whom? on whose authority?

This is scary. And its on St Matthew’s watch too.


As best, this is a far too charitable interpretation.

So the regulator found clear evidence of fraud and the response was to tell CHC undo it and not do it again? And subsequently left CHC to theor own devices, trusting that this single piece of illegality would not be repeated? And this decision was made unilaterally without reference to the clients whose money is now lost because of the regulator’s incompetence.

That is just complete ballocks.


Who made the decision not to prosecute then and save lots of people lots of money?


Neary and Hurley I should think :frowning:


More on this unnecessary mess. … 28558.html

That’s very big of you given that your 32 month delay in acting on information provided by a whitsleblower combined with your unilateral illegal decision not to prosecute without reference to the Chief State Solicitor caused this mess. … 20526.html … 21052.html

So much for previous comments about the so-called super-rich being affected.

I would recommend any investor to use the services of Garrett Sheehan solictors.


Big article on the “Ponzi” in todays Sunday Times.


Did it look like leaking from the investigators to defend themselves?


So they dont know what a Ponzi is either?


This was fraud (missapropriation of funds) and those responsible should go to jail but it was not a Ponzi scheme…

Office of Charles Ponzi & Sons:

“Mr Ponzi, have you seen what the US Justice Department is saying about this poker website?”

(Sighs) “Don’t tell me, Massimo: they say it’s a Ponzi scheme?”

“You’ve got it in one, Mr Ponzi.”

“This is outrageous! Call my lawyer! Who do these bastards think they are? I am Charles Ponzi! The Ponzi scheme is my creation!”

“I don’t think Full Tilt Poker are planning to infringe on the trademark.”

“I’m not worried about Full Tilt Poker. I’m upset about these sanctimonious asses who keep saying Ponzi, Ponzi, Ponzi and they know nothing! If a company goes bankrupt but the managers get paid, it’s a Ponzi scheme. Internet bubble companies are a Ponzi scheme. If it’s a government policy they don’t like, it’s a Ponzi scheme. Where does it stop? Some kid steals baseball cards from a candy store and it’s a Ponzi scheme? They think I’m a shoplifter or something? What do they say the poker website did anyway?”

“Well, the US Justice Department says that some of the company directors paid themselves handsomely while they were struggling to take in money from new players.”

“Why were they struggling to take in money?”

“Because the US government was trying to make online poker and all related transactions illegal.”

“Oh well. It doesn’t matter to me if they did it or not. What these clowns at the
US Justice Department are describing is not a proper Ponzi scheme at all. A proper, classic, elegant Ponzi scheme is an investment offer that pays investors high returns. You know this.”

“I know this, Mr Ponzi.”

“You know this. The high returns attract new investors – and often the old investors keep their money in too. As long as the money coming in from new investors is enough to cover the occasional investor who cashes out – and of course the dividends taken out by the scheme’s creator – then all is well. It is a thing of beauty.”

“It certainly is, Mr Ponzi.”

“If these guys looted the cash register while their company was going bankrupt, that’s not worthy of the great name of Ponzi. I’ll sue the prosecutors for tarnishing my brand name.”

“And Mr Perry.”


“Governor Rick Perry. He’s running for president.”

“What about him?”

“He said that social security was a Ponzi scheme.”

“He said what? Who the hell does he think he is?”

“I think he thinks he’s the next president of the United States.”

“Well screw him! I’m Charles Ponzi! Social security isn’t a Ponzi scheme! It’s just a welfare payment that’s going to be more expensive because of demographic change.”

“I understand, boss. But – well, isn’t it a little bit of a Ponzi scheme? I mean, it depends on each generation being larger than the previous one.”

“Crap! It does not depend on that at all. Sure, it’s cheaper if there are lots of young people around. But social security is perfectly affordable with a bit more tax or a slightly lower pay-out. It’s nothing like a Ponzi scheme. With some adaptations it could run forever. But a good, audacious Ponzi scheme can become unsustainable in months.”

“Shall we sue Mr Madoff too, then, sir?”

“No, no. Bernie is fine, Bernie carried off a proper Ponzi scheme. He sure kept it going for a long time. I cannot complain. I wish we had trademarked the Ponzi name, but I cannot blame Bernie for that.”

“That’s very big of you, Mr Ponzi.”

“I suppose I should not be too upset. The more people carelessly talk about Ponzi schemes, the more confused everybody becomes. It will become easier and easier to operate a real Ponzi scheme. So everything is not so bad.”

“You look tired, sir. Let’s get some pizza and relax.”

“A good idea, Massimo! I have some vouchers from this internet thing, Groupon. It seems the local pizzeria is offering some great deals.”

“Ah. Mr Ponzi?”


“Have you heard what some people are saying about Groupon?”

“My lawyer, Massimo! My lawyer at once!”


Superfurryanimal, the ‘Ponzi’ addition to the title (not my doing) is tongue-in-cheek.
It’s reference to the fact that, since Madoff, every alledged ‘misallocation of funds’ incident, is attributed to a ponzi scheme.


The argument has been well made that it has been a Ponzi since c.2007 even thought it did not start as a Ponzi. I accept that argument.


They would if they had worked for Robert Maxwell :angry: :nin


Well he just looted a pension fund and fell off a boat when he was finished :smiley:


In hindsight, at least he had the decency to do that.
Nowadays he’d simply go to the government and request a bailout.


I also read the lengthy Sunday Times article. I noticed right in the middle of the article the statement that no one blew the whistle. This is not correct.

A whistleblower met Noel Thompson of he Central Bank on Feb 2009 and presented details on the widepsread fraud in CHC. I believe mentioning his name is fair because it is already in the public domain: … apital.pdf … ompson.PDF … ompson.PDF … ompson.PDF … ompson.pdf

Because fraud involved diversion of pension funds (PRSAs), the whistleblower was advised by Noel Thompson to report the matter to the Pensions Board. I gather the stupidity of this response met with looks of incredulity from other attendees at the meeting. Then Noel Thompson commissioned KPMG to investigate CHC. Despite spending 6 months, they found none of what is now so obvious to everyone. Now the same Noel Thompson appointed his mates in KPMG as the liquidator to CHC where they can charge lots of fees for cleaning up the mess they effectively caused.

Note that CHC were allowed to offer PRSAs by the Pensions Board when it was chaired by a learned senior counsel (who defended Fianna Fail at the Moriarty Tribunal and was appointed to the chair of the Pensions Board by Dermot Ahern) who is married to John Caldwell, of Jackson Way fame. Caldwell was a silent partner in CHC, controlling up to 25 per cent of the business before being bought out in 2007 for €2 million with embezzled clients’ funds.

Note that after such a spectacular display of utter incompetence in financial regulation in 2009, Noel Thompson got a promotion from Saint Matthew.


Custom-made scandal - Gavin Daly -> … 59328.html

Fears that CHC may not be the only bad apple - Jon Ihle -> … 59327.html

Auditors targeted in Custom House regulation review - Jon Ihle -> … 59297.html



There’s more of these to come out…


There is a rumour that a Galway Accountancy company ran a sizeable Ponzi Scheme but that they blamed it partly on ‘The World’ investor John Dolan when he died.

It seems a persistent individual did some forensic research on it since and believes Dolan was their agent not the perpetrator.

But I have not heard any updates for a year at least.




Surely the lesson here is don’t be friends with an accountant, any accountant!