ABC investigation sparks ASIC probe into top mortgage fund (Australia)
Source: Australian Broadcasting Corporation
The corporate watchdog is investigating one of Australia's biggest mortgage fund operators for potentially false and misleading statements in the wake of a Four Corners investigation.
Gold Coast-based fund manager LM Investment, which operates in 70 countries and boasts of managing $3 billion of realisable assets, has made claims that one of its key funds is a "bank-like" facility and that it operates in Australia as a "conservative and highly rated private bank".
LM Investment is in fact a fund manager without any bank safeguards that operates mortgage funds subject to no prudential regulation.
Investors in its First Mortgage Income Fund and various other funds have lost hundreds of millions of dollars of capital, in some cases money that represented most of their retirement savings.
Read more: http://www.abc.net.au/news/2013-03-04/lm-investment-investigated-for-potentially-misleading-investors/4550414
You wonder why it took a television program to initiate an investigation - just what do these corporate watchdogs do with their time? And meanwhile, these fraudsters just keep on going, all over the world.
2008 taught these people nothing, except maybe that they can get away with it.
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