Archive for August, 2012 | Monthly archive page

CGI margin call procedures manual exposes Narev and Cohen lies.

Tuesday, August 28th, 2012

Reporter : Tom Tucker

Content : CBA margin call procedures manual, Ian Narev CBA, Storm PJC, CGI margin call notices.

Tuesday 28th August 2012

Following representations and inquiries by our investigators, The Plain Truth has obtained an extract from The Commonwealth Banks,  Risk Management and Margin Calls Procedure Manual'.  This extract is from section  6.1 Margin Call Letters   (Colonial)' of the CGI procedures manual and puts to bed claims by the Commonwealth Bank that it had changed its procedure from ' a) contacting both advisor and client in the case of a margin call to, b) only contacting an advisor who was then responsible for contacting the client of any margin call.

It was claimed by both Mr Narev and Mr Cohen that this change was after 2003 but well in advance of the events of late 2008.  This assertion by Narev and Cohen is clearly seen in the answer below to a question put by Senator McLucas at the Parliamentary Joint Committee Hearing on Corporations & Financial Services ' Fri 4 Sep 09 ' CFS 75.

To cover its tracks for failing to issue margin calls, the CBA line as can be seen above has consistently been…that a change of procedure occurred… at some unknown point in time and the CBA has no documentation to prove it (how convenient).  By taking this line, the CBA cunningly attempted to shift responsibility away from its own failure and onto Storm.

The reality, rather than the CBA's BS, is reflected in the following extract from the CBA procedures manual whose print date was January 2007 and which prevailed throughout 2007 and 2008.

Clearly the normal procedure was to have a copy of the margin call letter sent to all parties to the margin loan, including the advisor and the borrower.

The format of this letter is consistent with the historical format of margin call notices received by Storm and Storm clients in 2002-03 as well as consistent with the testimony of Emmanuel Cassimatis, other Storm advisors and Storm clients.  Furthermore this format is also consistent with the margin call notice received by non-Storm advisors and dealer group during 2008.   Tellingly, CGI has yet to produce copies of the margin call notices using this same format of which they claim to have issued 2,600 during the relevant period in 2008.  This claim was made numerous times, including at the Parliamentary Joint Committee Hearing on Corporations & Financial Services ' Wed 28 Oct 09 ' CFS 30.

Although The Plain Truth currently only possesses extract 6.1 of The Commonwealth Banks,  Risk Management and Margin Calls Procedure Manual', we expect to receive from the same source at the CBA further pages of their procedures manual along with other annexures, documents and emails.  These documents should be in our possession within 14 days.

 

The Editor

The Plain Truth,

PO Box 2783

New Farm  QLD  4005

 

Content : CBA margin call procedures manual, Ian Narev CBA, Storm PJC, CGI margin call notices

ASIC's Jeremy Cooper stutters, stumbles and exposes himself when cornered by Senator Williams.

Tuesday, August 21st, 2012

Reporter : Ted Baxter

Content : ASIC Jeremy Cooper, Senator John Williams, Senate Economic Committee, ASIC & Storm case, Hugh Copley ASIC.

Tuesday 21st August 2012

On the 25th Feb 2009 whilst before the Senate Economic Committee the then deputy chairman of ASIC and the current chairman of retirement income at Challenger, was asked a very straight-forward question by Senator Williams.  As it came from left field, Mr Cooper wasn't mentally prepared to quickly dodge the question and so he was forced to  um' and  ah' for an uncomfortable period buying him the time required to once again craftily dodge giving the real answer.

The Plain Truth has obtained statements, including from Emmanuel Cassimatis, to the effect that Storm had received through its legal representative at the time, Mr Justin McDonald from Mallesons, a threat from ASIC requiring Storm enter a permanent signed enforceable undertaking on the spot or ASIC would come down on the Cassimatis' with the full force of the law.

As we have seen in the previous article this threat made by ASIC was resisted because its gagging implication was in the worst interest of Storm clients.  Of course ASIC has refused to confirm making this threat and in doing so implicitly denied the threat was ever made.

Senator Williams armed with the knowledge that ASIC threatened the Cassimatis' with “the full force of the law” if they didn't tow the ASIC line, surprised Jeremy Cooper with the question, “Did you phone the Cassimatises' lawyers and threaten to bring the full force of the law down if a so-called voluntary undertaking was not signed?”   Jeremy Cooper denied making such a threat and said, “I said that the commissioner of ASIC was taking a serious interest in this, it was a very serious matter. I think I implored the lawyer to get instructions from his clients”.

The video link below clearly shows how Cooper was caught out unexpectedly by Senator Williams.

 

(click here to view ASIC's Jeremy Cooper feeble attempt at deflecting Senator Williams direct question to him on 25 Feb 09)

 

The following extract from an email dated 22nd Dec 08 @ 6:53pm confirms that ASIC was determined to get its way and shut Storm up.  As you can see by the tone of the email because ASIC didn't get its way, they threatened like a petulant child to take its bat and ball and go home.

 

 

 

As The Plain Truth has mentioned in previous articles about ASIC, we will expose the truth however it is up to you, the readers and victims, to take the relevant action.  The contact details of people you should approach for explanations are listed below.  Please do not forget to take detailed notes or preferably record your conversation.

 ASIC contact details:

Greg Medcraft –  greg.medcraft@asic.gov.au

Hugh Copley –  0434 565 199  –  07 38674892 –  hugh.copley@asic.gov.au

 

Jeremy Cooper contact details:

Jeremy Cooper – 02 9994 7000 ' jcooper@challenger.co.au

Tony D'Aloisio contact details:

Tony D'Aloisio –  info@oakridgewines.com.au (mark as attn to Tony D'Aloisio)

The Editor

The Plain Truth,

PO Box 2783

New Farm  QLD  4005

 

Content : ASIC Jeremy Cooper, Senator John Williams, Senate Economic Committee, ASIC & Storm case, Hugh Copley ASIC.

The 2012  ASIC games' in full swing: ASIC maintains dominance and wins Gold again in the lie-athlon.

Tuesday, August 14th, 2012

Reporter : Ron Burgandy

Content : gagging of Storm, ASIC, enforceable undertaking, Storm clients, Tony D’Aloisio oakridge wines, Hugh Copley contact, Ritesh Patel email

Tuesday 14th August 2012

Why is it easier for some people to believe a lie than to believe the truth?  Answering this question is way beyond the capabilities of anyone at The Plain Truth.  Given our inability to answer this question then we will simply keep hammering away at presenting the truth and to hell with those who insist that man never landed on the man and the holocaust didn't happen.

Much has been written in previous articles about the power of half truths and spin.  An outright lie is easily disproved but a spun lie or one cloaked with a half truth can appear deceptively credible (see our previous articles relating to CBA's Ian Narev).

ASIC has been quite disingenuous in the way in which it has gone about manipulating and interpreting the word “gag” and in its statement that “ASIC did not give instructions to gag Storm”.

It is now August 2012 and just 4 months shy of 4 years since ASIC perverted the course of justice and prevented Storm clients from talking to their advisors.  Here we are nearly 4 years later with ASIC still being a cracked record with their vehement claim that…

 Storm said it would cease contact with all its clients over the Christmas period and that this action was not requested by ASIC and was a decision made by Storm'.

The bad thing about this claim is the fact that it is just a plain lie and for those devastated by this lie it is also soul destroying.  The good thing is that while ASIC maintains this stance, it will continue digging the hole ever so much deeper for itself.

At the prompting of The Plain Truth, many people and The Plain Truth itself have hammered ASIC (including Greg Medcraft) with the same questions about the role ASIC played in the gagging of Storm in 2008 and subsequently.  ASIC's and Medcrafts answer had been to respond with the same template shown below.  This extract is consistent in the emails received by clients from ASIC to date.

ASICs claim that Storm volunteered to cease contact with clients on 19th Dec 08 is completely at odds with emails The Plain Truth has previously published.

To date ASIC has focused its spin on the non-signing of the Enforceable Undertaking (EU) document and stated that because this document was never signed that therefore ' ASIC never gagged Storm.  Whilst it is true that the EU document was never signed, this point is not relevant to the gagging of Storm.  ASIC is simply being cute and trying to link the 2 points together.

Whilst Storm was resisting the inevitable consequences that would flow from the signing of the EU document as proposed, ASIC successfully extracted an oral  interim' undertaking. The gagging of Storm occurred when ASIC demanded and got this ORAL  INTERIM' UNDERTAKING.  This demand from ASIC is obvious in the below email from Hugh Copley to Justin McDonald (Storms lawyer).

It was this seemingly harmless  interim' undertaking, forcefully imposed by ASIC that ultimately led to the demise of Storm and the destruction of Storm clients.  It is this loss causing  gag' action by ASIC which will require ASIC to compensate Storm clients for a significant proportion of their losses.

A further email dated Monday 22nd Dec 08 again confirms that ASIC had not only demanded the gagging of Storm but also insisted on an extension of that gag.

Furthermore whilst The Plain Truth, Storm people etc have all been able to provide evidence AND proof of ASICs gagging strategy (oral interim undertaking), ASIC itself has been unable and unwilling to provide any evidence whatsoever that it didn't gag Storm.  When pressed by clients and Parliament on the issue the evidence that ASIC has relied on has been ' “we have said that we didn't gag Storm, therefore we didn't gag Storm”.  In other words ' suck it up.

For those of you who are willing and able to continue a fight, please phone or email the guys below and ask them to explain the discrepancy between:-

a)      ASICs initial email request on the 18th Dec 08 for an interim undertaking to be agreed to by Storm and the subsequent phone call from Hugh Copley to Storm that requested that same interim undertaking be extended, and

b)      ASICs stock standard reply email to clients that states that ASIC did not request Storm for an interim undertaking.

Should you decide to phone then please record the conversation because we have had a number of instances where ASIC officers have subsequently denied saying what they said in earlier conversations.  It may be better to email so that they are unable weasel out and the record will be clear.

Greg Medcraft

greg.medcraft@asic.gov.au

 

Hugh Copley

0434 565 199  –  07 38674892 –  hugh.copley@asic.gov.au

 

Jeremy Cooper

02 9994 7000 ' jcooper@challenger.co.au

 

Tony D'Aloisio

info@oakridgewines.com.au (mark as attn to Tony D'Aloisio)

 

Ritesh Patel

07 3867 4718 – ritesh.patel@asic.gov.au

The Editor

The Plain Truth,

PO Box 2783

New Farm  QLD  4005

 

Content : gagging of Storm, ASIC, enforceable undertaking, Storm clients, Tony D’Aloisio oakridge wines, Hugh Copley contact, Ritesh Patel email

Senator Williams quest for the truth about Storm directors gagging thwarted by antics of ASIC duo.

Tuesday, August 7th, 2012

Reporter : Ron Burgandy

Content : Senator Williams, Emmanuel Cassimatis, Jeremy Cooper ASIC, Tony D'Aloisio ASIC, Storm gagging.

Tuesday 7th August 2012

Billions of dollars were lost and hundreds of families were dispossessed of their wealth as a result of, in the main, two strong and emphatic reactions to the GFC.  The first was the self serving and illegal sell down of assets by the Commonwealth Bank in its need to improve its liquidity.  The second reaction, and the topic of this article, was the enabling action by ASIC when in order to protect the banking system they gagged Storm and its advisors as well as Storms managing director and its chairman personally.

The Plain Truth has obtained from an ASIC source, copies of documents which remove all doubt about whether the Cassimatis' were also personally gagged by ASIC and were made subject to the possibility of severe penalties if they disobeyed ASIC directions by disclosing any information.

Below are relevant extracts from an ASIC transcript of a confidential examination dated 16th Dec 2008 that confirms the ASIC gagging order on Mr Cassimatis.

 It wasn't until the 11th Feb 2011, 2¼ years after ASIC first gagged both Emmanuel and Julie Cassimatis and ASIC felt safe in removing the gag on the Cassimatis' that the gagging order was lifted.   Below is an ASIC document provided to us by Emmanuel Cassimatis.  This document advises Mr Cassimatis that the gagging order first imposed on him from the 16th Dec 2008 had been lifted effective from 11th Feb 2011 (click here to see ASICs revocation of its gagging directions)..

The document confirms that Mr Cassimatis was in fact gagged as he claimed and continues to claim.

In Dec 2008 and since, Storm CEO Emmanuel Cassimatis, has been resolute in his assertion that he and Storm advisors were gagged by ASIC.  The effect of this gagging prevented Storm clients from contacting their advisors which resulted in huge portfolio losses for them.  The personal gagging of the directors meant that the Cassimatis' were prevented from letting Storm clients know exactly what the  CBA state of affairs' was thus preventing the truth from emerging in many forums, including the press, the liquidators inquiry and to the world at large.

On the 25th Feb 2009 Senator John Williams had the twin ASIC slippery eels within his reach.  To this time the blatant denials by ASIC had managed to convince the press and the public that ASIC had acted honourably and was acting to protect consumers whilst in the same breath denying any prior in camera meetings with the CBA.  The Plan Truth has previously established that ASIC secretly met with the CBA (click here for collusion evidence pt 1)    (click here for collusion evidence pt 2).  One of the issues in question was the personal gagging of the Storm directors.  Senator Williams was able to pick up on what may have been a relevant point in spite of the surrounding media circus and surprised Cooper and D'Aloisio with probing questions about the gagging of Storm and ASICs gagging orders on the directors of Storm.

As can be seen in the transcript below from the Senate Estimates Committee hearing, Senator Williams asked a straight question to ASIC about its powers, “Do you have a thing called a section 19?” to which he received the only answer possible, “We do.” 

However in answer to Senator Williams question about ASICs exercising of this power, “Did you issue a section 19 on Storm?”, Jeremy Cooper used his considerable  experience' to duck, weave and completely avoid answering the question.  This crafty side-stepping by Jeremy Cooper can be seen clearly in both the following transcript and video extracts.

          Senator WILLIAMS—Has Storm been gagged at all? Do you know anything about that?

          Mr Cooper—Not by us, no.

          Mr D'Aloisio—I do not know what you mean by  gagged'.

          Senator WILLIAMS—Do you have a thing called a section 19?

          Mr Cooper—We do.

          Senator WILLIAMS—Did you issue a section 19 on Storm?

          Mr Cooper—This is getting into the mechanics of our investigation, but certainly that is our investigation power to compel people to answer questions. That is the core tool of our investigations. Section 19 is a section in the ASIC act that allows us to compulsorily examine people to get to the bottom of exactly these sorts of matters.

(click here to view video of ASIC heads (Cooper & D'Aloisio) side-stepping Senator Williams' probing questions on 25 Feb 09)

 

Even though the valiant questioning by Senator Williams on the 25th Feb 09 was seemingly fruitless on that day, he was still able to trap this ASIC duo within their own web of lies.  As has be seen in documents uncovered by The Plain Truth, ASIC DEFINATELY GAGGED BOTH STORM PERSONNEL and STORMS DIRECTORS EMMANUEL AND JULIE CASSIMATIS.

ASIC used its section 19 investigative powers to completely silence the Storm directors.  These powers were designed as an interrogation tool for ASIC to compel people to answer questions for investigative purposes rather than as a gag.  ASIC was able conceal topics at its sole discretion simply by including these topics and material in their discussions and questioning of the Cassimatis'.  By doing this ASIC was then able to issue gagging orders that anything discussed must remain confidential until such time as ASIC felt safe enough to rescind such orders.

Call us cynical if you like but it seems to The Plain Truth too much of a coincidence that ASICs suppression of information from Storm and Cassimatis commenced the day before CBA began their scripted campaign of Storm being “completely responsible for your financial position” on 17th Dec 08 and was lifted in 2011 well after the majority of Storm clients had been cleaned up by Scattini and CBA's unsatisfactory settlements in their Resolution Scheme.  At the same time Storm advisors and its servants were gagged on the 18th Dec  08.

If ASIC was fair dinkum then it might have saved its credibility by issuing gagging orders on topics they considered particularly sensitive.  The Plain Truth and our expert investigators have read many hours of these transcripts and can confidently state that at best, maybe 5-10% of the conversation may have been sensitive in nature.  Of course ASIC will claim that every word uttered MAY HAVE BEEN sensitive to their investigation.  For ASIC to gag every word stated and for 2¼ years can only be indicative of a gross misuse and abuse of power.

So the question is:

WHY DID ASIC FEEL THE NEED TO GO TO SUCH EXTREMES?

A consistent theme that has emerged from the analysis of a large number of clients that were Storm clients prior to 2006 and in particular the period 2001-04 is that Storm had definite and robust advice in place to handle any margin call notices that the bank may have issued.  Further evidence of Storms re-participation strategy can be seen on our previous articles Storm Financials re-participation strategy: Did it exist? and Storm Financials re-participation strategy: Did it exist? (conclusion).

Currently Storm clients broadly fall into two categories.

1)      Those who have received partial compensation from the banks based on the deficient Scattini formula.  This compensation was mainly from the Commonwealth Bank and to a lesser extent the National Bank.  Even though most people have accepted this compensation under duress it has long been suspected to be grossly substandard.

It might be worth noting that within this group of partial compensation clients, The Plain Truth has received credible information that some lawyers have successfully forced the CBA to pay significantly above the Scattini formula for the same circumstances.  We also understand that the CBA has also found a  back-door' way of compensating Storm staff and advisors and has already done so in numerous cases.

2)      Those who have received nothing to date.  A number of these Storm clients are relying on the somewhat tenuous assertion that there existed an Unregistered Managed Investment Scheme.

 

In the first case above, personal circumstances forced people to accept substandard compensation.  In doing so, individuals signed away any rights for further compensation from the bank.  For these people, the way is open for them to seek compensation from ASIC for the difference between what they did receive and what they should have received if their portfolios were reinstated.  The Plain Truth analysis of the compensation packages received to date indicate that the amount of compensation offered by the banks is only between 25% to 50% of what it should have been.

In the second case individuals still have the hope of obtaining full compensation from their respective bank.  However, this is unlikely because lawyers will unfortunately do a deal (as lawyers do) that coincidentally runs along similar lines to the deficient Scattini formula rather than litigate, especially since most can't afford to litigate.

As The Plain Truth has mentioned in previous articles about ASIC, we will expose the truth however it is up to you, the readers and victims, to take the relevant action.  The contact details of people you should approach for explanations are listed below.  Please do not forget to take detailed notes or preferably record your conversation.

 

ASIC contact details:

Greg Medcraft (the guy in the hot seat now) –  greg.medcraft@asic.gov.au

Hugh Copley (the underling who actually did the gagging)-  0434 565 199  –  07 38674892 –  hugh.copley@asic.gov.au

 

Jeremy Cooper contact details:

Jeremy Cooper (who ordered the gagging to cover his tracks) – 02 9994 7000 ' jcooper@challenger.co.au

Tony D'Aloisio contact details:

Tony D'Aloisio (the boss at the time who signed off on the order) –  info@oakridgewines.com.au (mark as attn to Tony D'Aloisio)

Further evidence on the low tactics Tony D'Aloisio employs can be found in an article titled “The watchdog, his wife, and their winery” that was penned by Scott Rochfort, Michael West and Ian Verrander.  Click on the link for the full story http://www.businessday.com.au/business/the-watchdog-his-wife-and-their-winery-20110330-1cgca.html

The Editor

The Plain Truth,

PO Box 2783

New Farm  QLD  4005

 

Content : Senator Williams, Emmanuel Cassimatis, Jeremy Cooper ASIC, Tony D'Aloisio ASIC, Storm gagging.