A federal court document dated 30 June 2018 outline the corporate regulator’s efforts to appoint receivers to the companies linked to Linchpin Capital in light of unlawful activity surrounding an unregistered fund.
“On or about 10 January 2018, ASIC commenced an investigation pursuant to section 13 of the ASIC Act into the following people and entities in relation to suspected contraventions of the act:
(a) the first defendant, Linchpin Capital Group Limited (ACN 163 992 961);
(b) the second defendant, Endeavour Securities (Australia) Limited (ACN 079 988 819);
(c) Beacon Financial Group Pty Ltd (ACN 162 734 152);
(d) The Financiallink Group Pty Ltd (ACN 055 622 967);
(e) Libertas Financial Planning Pty Ltd (ACN 160 419 134);
(f) Risk and Investment Advisors Australia Pty Ltd (ACN 104 922 394);
(g) Investport Pty Ltd (ACN 160 710 190); and
(h) their officers, employees, agents and associated entities.
At the heart of ASIC’s investigation is an unregistered managed investment scheme called the Investport Income Opportunity Fund, of which Linchpin is the trustee. Linchpin is also the sole shareholder of Endeavour, the responsible entity of the scheme.
As part of its year-long investigation into the complex web of companies, court documents revealed that ASIC conducted an examination of Ian Williams, Peter Daly and Paul Nielsen – who have all been directors of Linchpin, Endeavour and a number of other companies in the Linchpin Capital Group.
ASIC’s investigation found that the Investport Income Opportunity Fund has made personal loans to directors Mr Daly and Paul Raftery.
Court documents reveal that in the period 14 September 2015 to 25 July 2017, Linchpin, as trustee of the unregistered fund, entered into a number of written loan agreements whereby it made loans to Mr Daly.
By the written loan agreements, it agreed to advance to Mr Daly a total sum of $125,000. The terms were the Linchpin standard terms. Mr Daly gave as security the shares held by him in Linchpin.
“No purpose for the loans was stated in the loan deeds,” the documents noted. However, they later reveal that “during his examination, Mr Daly said that he was advanced the funds to assist him with personal financial difficulties”.
Meanwhile, in April 2016, Linchpin entered into a loan agreement with Mr Raftery for the sum of $30,000, with an initial advance of $10,000. Linchpin entered into the written loan agreement as trustee of the unregistered fund. The security given by Mr Raftery was the shares held by him in Linchpin.
“During his examination, Ian Williams (who signed the loan deed and specific security agreement on behalf of Linchpin) said that the purpose of the loan was to pay for Mr Raftery’s divorce,” the court documents revealed.
The issue here is not that they made small loans to themselves, it is that the majority of the $16 million they raised for the fund they invested into buying planners books and businesses they own from the court documents including $5 million they pumped into Beacon. So yes while Beacon is perhaps not directly under investigation, it is under investigation in terms of any attempts to recover monies for investors
Other than being not fit or proper people. the main mistake they made was that they are not a bank. If they were a bank they could get away with laundering money for terrorists, manipllating money exchange rates, pressuring doctors to change their statements and they would still be paid a way bigger bonus than the $125k they stole.
Note to all the people who want to rip off customers and steal money and get away scot free- go work for a bank. Oh…..thats right, you already do.
Jeesees, I am reading this and going fair dinkum old PD is in more strife than the bloody early settlers. I mean a man’s gotta pay for his water’s wedding and if ya are a few bob short why not whack ya hand in the till and tide yourself over for a few more weeks, or five years.
I mean it’s not called the bloody opportunity fund for nothing and old PD just took the opportunity. What mug wouldn’t? Poor bugger. How would old PD know ASIC was watching? Why would old PD ever think that? Old PD has a ripper track record with ASIC and nothin’ to be ashamed of, ever. Just bloody bad luck I reckon.
Give a bloke a go. Ya can trust old PD to pay it back pronto cant ya. Ever met a man wearing a gold necklace and matching gold cufflinks and watch ya can’t trust? Fair go.
Old PD is good for it. $125,000 is chicken feed to old PD. He tells everyone that. That loan is as safe as a Melbourne housing price. Can’t be any safer than that mate.
Never did trust that Raftery guy and his bloody AIOFP. Bloody professor smartarse at the Be-Conned Financial Group. Can’t trust the bugger. Reckon he dobbed old PD right into it. Bloody whistle blower. Suckin up to ASIC.
It’s not as if old PD hurt anyone, other than a few stupid punters. I mean what were they expecting once they saw old PD in the PDS. I mean old PD put the C back into CPD and the con back into Be-Con. Silly buggers. Got what was comin to em. Haven’t they heard of due diligence and all that shit? Gotta keep ya eyes open mate. That’s what Google’s for.
Buyer bloody beware at Be-con. Can’t expect anyone else to keep an eye out for ya.
The Be-con advisers are righto though: no chance of a client claim here. The insurance policy will be righto too: it’s not as if it’s a fraud. The annual renewal is in the bag.
Those Be-con boys know old PD is a good bloke. Old PD will pay it all back one day. ASIC’s not crackin’ down here. No way Jose. It’s just a flesh wound. Can’t be compliance problem if there is no compliance, every whacker knows that.
Who would have thought old PD in strife again? It’s Be-con Freakin.
Who ever you are anonymous, good for you for not following the slander and trial by media that the masses are taking part in. Peter is a decent hard working man and a lot of people owe their careers to his mentorship. It’s an unfortunate situation, but one should look at the entirety of the facts before burning a straw man.
I think you need to re-state your claims there pal, Paul Raftery (mentioned in this article) and Adrian Rafferty (prof at Deakin Uni & chair of AIOFP) are different people…..
very creative writer. you write well.
False headline. Beacon is not under investigation, it is Linchpin and Endeavour.
True
Australian Financial Services, Yellow Brick Road, Beacon, Long Bay Gaol?
And we wonder why our industry is under intense scrutiny.
I trust ASIC will impose and request the harshest of penalties with significant prison terms as a deterrent for any would be thieves.
You would expect better from people that have been in the industry for a long time- long pockets and short arms catch them out every time treating others money as their own
FIT AND PROPER PERSONS???
Thx Pete
Please note, Peter Johnston is besties with the Talented Mr Daly.
Please note that Paul Raftery is not related to or been involved with Dr Adrian Raftery from Deakin University.
Thanks Pete. Your endorsement means the world to me and Shawn.