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BFCSA investigates fraud involving lenders, spruikers and financial planners worldwide.  Full Doc, Low Doc, No Doc loans, Lines of Credit and Buffer loans appear to be normal profit making financial products, however, these loans are set to implode within seven years.  For the past two decades, Ms Brailey, President of BFCSA (Inc), has been a tireless campaigner, championing the cause of older and low income people around the Globe who have fallen victim to banking and finance scams.  She has found that people of all ages are being targeted by Bankers offering faulty lending products. BFCSA warn that anyone who has signed up for one of these financial products, is in grave danger of losing their home.


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Led by award-winning consumer advocate Denise Brailey, BFCSA (Inc) are a group of people who are concerned about the appalling growth of Loan Fraud around the world. BFCSA (Inc) is a not for profit organisation in the spirit of global community concern and justice.

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BFCSA: James Wheeldon the Whistle blowing Lawyer who tipped the bucket on ASIC

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A true hero in our midst.  James Wheeldon.  Hockey at last admits ASIC and APRA have failed abysmally in holding bad banks and their planners who are really sellers of bank engineered dirty products) but fails to point out that David Murray AO has not the slightest interest in suggesting the miserable banker chiefs should be called to account....lest he name This email address is being protected from spambots. You need JavaScript enabled to view it.

August 9 2014


ASIC a one-eyed watchdog

James Wheeldon


 It seems everyone is piling on ASIC. In June, a senate committee handed down a scathing report on its failure to respond effectively to reports of fraud and forgery within the Commonwealth Bank’s financial planning division. Last Tuesday, Joe Hockey told his Coalition colleagues that the regulator had “failed miserably” in holding banks and financial planners to account.  Things are so bad, even the successful prosecutions of the Australian Securities and Investments Commission have become a source of ridicule. ................


Greg Medcraft, ASIC’s chairman, says ASIC’s “first strategic priority” is to ensure that “consumers and investors are confident and informed”. .................. Greg Tanzer, an ASIC commissioner, recently explained that a key factor in deciding whether to start enforcement action is “the effect on market integrity” and “investor confidence”. It is hard to understand, then, why ASIC has set rules that encourage the duping of investors with the worst sort of marketing fluff. ASIC’s tough stance against those who would prey on the credulity of investors only goes so far.

A case in point is the 2007 initial public offering of shares in the RAMS Home Loans Group. Moylan’s hoax is rank amateurism compared with the prank pulled by John Kinghorn, the company’s erstwhile chairman and major shareholder; Floyd Norris of The New York Times described the RAMS share offer as possibly “the worst” of the decade, anywhere in the world.   Kinghorn gave potential purchasers of his RAMS shares – the proverbial “mum and dad investors” – a glossy 107-page prospectus full of uplifting images of young couples moving into solid brick homes. Letters four centimetres tall screamed of RAMS’ “STRONG FINANCIAL OUTLOOK”. On the third page of the prospectus, Kinghorn assured potential investors that RAMS’ business model “has been refined to continue to drive sustainable long-term growth”. To ensure that punters who preferred pictures over words got the message, brightly coloured graphs featured arrows pointing ever skyward.

Only those with the stamina to grind through the fine print would find the buried hints about the truth of the situation. Section 8.2.6, on page 66, warned in small type that RAMS had “structured its funding” because of “an expectation that RMBS [residential mortgage-backed securities] and XCP margins will continue to decrease”, which means that in the event of “a major liquidity disruption”, RAMS may need to “replace some or all of its short-term funding”.   If you find it hard to grasp the gravity of that warning, don’t feel bad. The warning wasn’t meant to be easily understood. The prospectus – drafted with the assistance of elite law firm Mallesons, underwritten by Swiss bank UBS and audited by PricewaterhouseCoopers – was designed to lull investors into complacency. ...................

It worked, of course. A “major liquidity disruption” was already well under way when the prospectus went to print, and RAMS collapsed three short weeks after Kinghorn pocketed more than half a billion dollars of investors’ money. The “mums and dads” who bought into the prospectus were left with near-worthless paper. ASIC never troubled Mr Kinghorn, who used his profits to build a reputation as a philanthropist, until the Independent Commission Against Corruption named him as being corruptly involved with Eddie Obeid.....................ASIC could not go after RAMS for shoddy disclosure because the loan company and its lawyers had played by the rules ASIC itself had written..................


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