4th August 2019,
PRIME MINISTER OF AUSTRALIA
THE STERLING GROUP COLLAPSE: $28.6 Million Compensation
ROYAL COMMISSION INTO The Australian Securities and Investment Commission (“ASIC”)
Dear Prime Minister,
As Parliament closes once again, Mr Frydenberg has written an inappropriate response to the victims of Sterling collapse. He is falsely and mischievously claiming the Sterling collapse is a State issue. The long list of Federal issues re-recorded on page 2 and 3 of this letter. Secondly, he is suggesting the Ponzi structure is a civil matter, when clearly, the deception involved is a highly recognisable criminal matter. The Treasurer has been gravely misinformed, to the detriment of the aggrieved consumers. Statements made by the Treasurer in public are inconsistent with active Consumer Protection.
It matters not whether the Treasury or ASIC pay the $28.6 million compensation we seek. Yet these payments must be made within weeks, not months. Two hundred elderly people need serious and immediate closure to the disastrous situation of being made penniless by stealth and being threatened with homelessness due to ASIC’s many years of neglect.
The Sterling collapse of the Group of Companies has now risen to $28.6 million at last count of the register of victims. As these matters and the urgency of the situation escalates, the demands for FULL compensation against ASIC will grow much louder over the coming weeks, and anger is building over the delay tactics and inappropriate excuses delivered. We suspect there could be calls spread over three states.
The Sterling matter is easily solved by making an immediate one-off payment of compensation to the Sterling Victims and sorting out the ASIC debacle over the next two years. We are also seeking an urgent ROYAL COMMISSION into ASIC.
The 2014 Economic Committee Inquiry into the (Non) Performance of ASIC revealed a higher level of investigation of ASIC’s bad behaviour was necessary back then. The demand and urgency of the need for compensation, now tracking at $28.6 million and rising, has reached critical status.
Each tenant victim has lost an average of $300,000 – their entire life savings. Each Investor has lost between $5,000 - $400,000 (whatever was in the cookie jar). Each Landlord has lost an average $60,000 and will soon escalate to a higher figure. The staff have been paid in “shares” which are fake: advertised as an IPO – start up “next week.” Within eight years, not one of those companies were every registered on the Australian Stock Exchange. The properties in several cases are not in compliance with Shire requirements and cannot be resold until critical adjustments are made.
These are home grown aussie scams permitted by the regulator to target life savings from older and vulnerable retirees. One person passed away two weeks ago. Funerals will become problematic. Do we take the bodies to the local footie ground whilst decisions are made? There are four people diagnosed with “months” to live. Do I tell these people, the Government may take some time to make its mind up? One 84-year-old lady said: “who will look after my beautiful husband?”
Is this really Australia? Is this the “Aussie” idea of a Fair Go?
This grand scale criminal negligence by the regulators is serious business. Their databases which we have to pay for the privilege of entry clearly show RED FLAGS back in time to the 1990’s. ASIC is just far too LAZY or too corrupted to carry out a proper investigation and search its own free database.
Mr Frydenberg suggested the STERLING VICTIMS, wander off to AFCA. No-one gets satisfaction from the bankers’ monitor. AFCA assists very few people and its legal opinions to deny claims are crafted by bankers. I know of this from experience from many other consumers. On Friday 26th July I asked 200 of these people to attend a RALLY at Peel Thunder Stadium at Mandurah. I asked them to identify the main FEDERAL issues. Constituents understand perfectly what Federal issues are at stake:
The FEDERAL ISSUES
• Centrelink: Landlords inability to seek rental assistance;
• Impact on the national economy re “Lease for Life” scams:
• ASIC negligence; Fake rescue offers from $2 companies;
• Liquidators accepting bogus offers:
• Dangerous Buyer Beware policies;
• ASIC permitting constant streams of companies to rise and fall:
• Corporation breaches by directors;
• Failure to call in the AFP:
• Failure to protect out international reputation re white collar crime;
• Banks approval of the leases in relation to lending;
• Landlords being groomed in “secure future;”
• False claims re ASX fundraising.
• Information Memo’s used instead of Prospectuses – outlawed in 1999?
• Using TRUST in the P/L name but no proper trust account in place:
• Worthless and misleading guarantees;
• Characters known for collapses and registration of multiple companies in the stream.
• Banks involved with inappropriate lending and credit checks. Verification.
• Property Management all linked into the system via shares.
• Lawyers who designed and profited from the inappropriate Contracts.
Mr Hastie raised a ridiculous 'dorothy-dixer' in Parliament this week, rather than mention his elderly and suffering constituents in Mandurah who are Sterling victims. Mr Porter never raised his own constituents’ grieving either. No FAIR GO from those MPs it seems. Not one ounce of compassion.
Mr Frydenberg also followed the identical line of excuses used by Attorney General Hon. Christian Porter MP and copied by Mr Andrew Hastie MP: namely, that these are both civil and state issues, and both defended ASIC. Wrong again! Why would ASIC have a look at this in 2015, if not their jurisdiction re breaches of Corporations Law? Why would the State notify ASIC, if not their jurisdiction?
ASIC treats everyone as if we are all mugs.
Centrelink is currently deeming the tenants to be the owners of the said property by suggesting the Lease is an ownership issue. Where does this leave the Landlords and the Banks other than inside an alphabet soup. The Liquidators (not really trustworthy) are saying the lease is invalid. Lawyers could drag out the arguments of the crime scene for another three years when people have months to live.
I refer to my letter to yourself, dated 24th July 2019. Since the Sterling Fiasco is a critical matter of Landlords and Tenants being misled by a serious of company streams tracking back to 2001, whereby consumers have been constantly complaining of Ponzi structures, funds being stolen, and false promises made, whist millions of dollars of savings go missing.
Of particular importance the elderly retirees and pensioners were deliberately targeted. Once again banks are involved in over-valued properties and serious suggestions of inappropriate lending.
The victims have had more experience in working hard for 50 years and as you suggest: “People who work hard deserve a FAIR GO.”
These people saved and accumulated an average of $300,000. Sterling bosses targeted that particular demographic, and over the years revealed a pattern of setting up company streams and then collapsing them, aided and abetted by ASIC. Rentals are consistently over-estimated by $100 or more, per week.
Rental payments to the Banks are higher than that being agreed to in tenancy contracts. Both tenants and landlords were deceived as to payments and 40-year expectations. No risks were explained in this very ordinary white- collar crime scene.
The worst complaint of all: hard evidence of ASIC’s criminal negligence in dealing with serious consumer complaints relating to crooked financial products permitted to flood the marketplace and catch unwary consumers. ASIC initially lied about when they were cognisant of serious breaches of the Corporations Act. The footprint of intention to deceive is everywhere in the Sterling Group investigation.
The Twin Peaks Model has been a 20-year disastrous regulatory policy for consumers and consumer outcomes. The benefactors of this largesse and regulatory neglect are notorious repeat offenders.
ASIC has produced years of ‘FAIR GO’ for the perpetrators but misery, confusion, sadness and death for the retirees and pensioners who have lost – yet again – their life savings and their homes. It is long past the time this madness can continue. You are aware I have spent 25 years of my life as a volunteer attempting to assist those affected. I continually advise ASIC Commissioners “this is not my job!”
My evidence has always been based upon sound and collective research and my work has been extensive in the area of white-collar crime. I do not make light of these statements and I beg you to heed these very serious warnings.
Please pay the $28.6 million compensation required to settle this matter and immediately announce a Royal Commission into ASIC.
Yours sincerely
Denise L Brailey
President of Banking and Finance Consumers Support Association (Inc)