In a correspondence to his staff and members, Beacon Group managing director Peter Daly said that the Federal Court had this morning conducted a directions hearing. As a result, a four-day trial will commence on 14 March.
“Between now and the 14 March there are a number of procedural deadlines leading to a case management hearing on the 7 March,” Mr Daly said in an email.
“Beacon is not the subject of the ASIC investigations nor have there been any allegations made against directors,” he said.
“Receivers were originally appointed to Linchpin and Endeavour to conduct a report, but neither their powers nor the court orders apply to Beacon or our subsidiaries. It remains business as usual.”
Mr Daly said that Linchpin tabled its submission in response to the ASIC allegations on 15 January
“I am relieved we will finally have the opportunity to bring everything to a head,” he said.
ASIC commended proceedings against Linchpin Capital Group, the parent company of non-bank licensee Beacon Group, back in July 2018.
The regulator was concerned about two managed investment schemes operated by the company.
Both investment schemes listed by ASIC are called “Investport Income Opportunity Fund”, ASIC said.
ASIC said an investigation found Linchpin was operating the scheme “without holding an Australian Financial Services Licence as required by the Corporations Act” and used investor funds for its own purposes “without disclosing this use to investors”.
Additionally, the regulator said Endeavour Securities had entered into “related party transactions in contravention of the Corporations Act” and failed to properly disclose those transactions to investors, and that “monies invested in the schemes managed by Linchpin and Endeavour have been misapplied or misappropriated by Linchpin and Endeavour.”
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.
Ol’ P-Diddy just doing his thing. Love’s to have his little Trump-like hands in the till. Cha-ching! and like the ol’ Trumpster, P-Diddy’s going to have a wall of his own soon, or at least 4 when he gets to shack up with bubba.
Whilst we are all attacking the migrant Mr P Daly, please be mindful he was on the funds investment committee but not a director of the afsl that managed the fund. Paul Nielsen Ian Williams and Paul Raftery were.
Paul the grub Nielsen was essentially the manager of that fund and controlled most things in and out. He has made threats to advisers and staff around the fund. He now is refusing to let go any adviser who has borrowed from the fund despite no legal ties to the licensee via a non existent tripartite agreement. He recently threatened to punch out a recent senior staff member.
Daly actually could plead ignorant to many proceedings and Williams and Nielsen held all the purse strings. They are the the main players to its mis management. Daly is the main player to self interest and greed.
They have bluffed over 200 advisers by continuing false and misleading statements, threats and intimidatory tactics to withhold advisers to the group.
They should be dealt with harshly
Investport Income Opportunity Fund – Ummmm,double I OF, sounds a little like IOOF, I wonder how they branded this strange sounding vehicle?
Hopefully the AIOFP are supporting their fellow AIOFP members from Beacon and Linchpin financially with a fighting fund. We all need to chip in together or this could happen to any AIOFP member.
I don’t understand why ASIC is going out of its way to persecute AIOFP members. why don’t they go after Commonwealth Bank or AMP??
https://www.ifa.com.au/editorial/26422-has-asic-been-compromised-by-the-institutions
So you think this is all made up against Linchpin and Beacon because they are AIOFP members and not members of one of the big instituions who have compromised ASIC? This seems very unfair and hopefully the Royal comission will reveal how badly this is all being run by the big end of town.
These allegations are outrageous, if they are true. Should they be proved then prison time would seem appropriate for the culprits. Guess this explains why AOIFP have a new chairman. Awkward running meetings from prison! Why would Deakin University lend their name to this sort of shenanigans? Do they simply not know about it or are they ignoring it? Are they offering courses in ethics for financial advisers? Should they be? So many questions so few answers, until March!
The AIOFP has a new chairman because he is the most qualified, professional professors at australias best university. He is in charge of financial planning and accounting at the best university and knows how FASEA and others are trying to destroy financial planing for us all. Hopefully he and others at AIOFP will stand up for Beacon and Linchpin because they were just trying to do the right thing.
Thanks to whoever my friend is on here for the kind words. Adrian here. Just to be clear, Deakin not myself are in any way involved with Linchpin. And Peter’s removal from the AIOFP Chair was fairly swift once we became informed of the allegations. It is a good question why I would put my hand up – particularly as it is an honorary role & already been publicly persecuted by the FPA despite being a long-standing CFP at the time – but I felt that the Independents in general are good for the profession and I felt that I could have a positive impact. Time will no doubt be the judge of that. Just like the upcoming trial.
Well, well !! The world has finally caught up with Daly !! Not before time.
Custodial sentences are required for the perpetrators. Those involved, all knew better.
Raftery ? no relation to the Academic ????
Absolutely none. Adrian here. My whole family tree (other than my two kids) are in Ireland following my parents passing. Only met Paul once in my life.
If I was the crown I would use this article against Mr Peter Eugene Daly, he again is misleading the public, the advisers which in turn misleads the investors
Paul Nielsen and Peter Daly are the responsible officers of the beacons afsl licenses and they were loaning monies to those licenses and the advisers within. How are they not affected. Beacon is an asset on linchpin and tied by virtue of the loans.
Another drop kick coverup by the great shot whale – Daley (absolute fool)
Les not forget Ian Williams – ex Mac Bank genius the puppet boy for bill moss the master mind of most of this disaster.
The whole group, it’s advisers and agents are all scarred by the Chinese walls (iron curtains) they put up and hid from all the advisers and staff. ( they hid everything from them and then terminated those who became suspicious and questioned them)
OMG, ya not fair dinkum are ya?. Old PD in strife again! What year is this?
PD is a legend. A mentor to millions if ya know what I mean. Kell should give ‘im a special gold (ya know, to match his gold cufflinks) get out of gaol card. Not literally. At least not yet. But ya know what I mean. One day.
PD is a special character, a unique industry personality even. What would life be like without old PD? A mini-DJT, just with smaller hands. Makes me proud to be an insurance salesman. PD talks the saleman’s walk, but not like that loser Willy Loman more like a Donald J Trump if ya know what I mean. PD is a winner. There is no way the bastards at ASIC will get ‘im over a minor matter of money. PD is smart; way too smart for them.
Reckon us IFA trolls should start a Go-F-Me Page for PD. You know, show PD how much we care and admire ‘im. After all, PD put the S into PDS and the C into CPD, so we all owe ‘im.
please keep posting these funnies i really enjoy reading your posts.
What an absolute disgrace
Fucked industry
Well this has made my Friday!
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