TRNC Investors in ill-fated Australian LMIM Group join global pressure group to fight for justice.
TRNC Investors in ill-fated Australian LMIM
Group join global pressure group to fight
By Ian Luckhurst
It is estimated that around 70 TRNC Expat retirees have seen their life savings and pensions totally eroded in the sudden and to-date unexplained demise of the LM Investment Management (LMIM) Group. The funds collapsed in March 2013 despite a fund valued some months earlier with an estimated AUS$3 Billion and with allegedly AUS$400 million in cash. Meanwhile, whilst many of the investors are suffering ruin and extreme financial hardship, the Senior Director of LMIM, Peter Drake, who denies all responsibility for the losses, currently lives a life of luxury on Queensland’s Gold Coast.
The estimated 12,500 victims world-wide were persuaded to invest by IFA’s (Independent Financial Advisors) who touted LMIM funds as “safe as a bank” and coming under “stringent Australian Regulatory Rules”. These claims were later seen to be misleading and inappropriate. Reputable Pension Trustee Companies and global Bond Providers such as Skandia, Royal London 360 and Friends Provident International aided LMIM sales by allowing funds, including Pensions (HMRC approved QROPS schemes) and Savings to be invested into LMIM without undertaking any due diligence whatsoever as evidenced by their standard answer to complaints … “we are administrators only and act solely on the instructions of clients so bear no responsibility for any losses incurred”.
In Australia the official regulatory vehicle for such Funds, the Australian Securities Investment Commission (ASIC), who were heralded as part of the stringent Australian financial regime have recently been the subject of a Senate Economics References Committee inquiry. Their findings were that ASIC were “slow to respond”, “complacent” and “lacking scepticism”. In effect the “ASIC joke” as they have now become known, is totally lacking in credibility.
For the past two decades Australian consumer advocate Denise Brailey, President of the Banking and Finance Consumers Support Association– BFCSA – has been a tireless campaigner championing the cause of older and low income people who have fallen victim to banking and finance scams. BFCSA is currently demanding a Royal Inquiry into the many failings of the Australian financial system and in particular the LMIM situation. Also, reflecting a growing global interest, in September 2014 the Financial Times of UK, published an article on this case.
Many LMIM victims from around the world have organised themselves into “pressure groups” with a view to class actions and recovery against those responsible for their losses. In SE Asia, Cyprus and the TRNC over 600 people make up an international group called “LM Investor Victims Centre” and a further 60+ in the “LM Thailand Investor Group”. There are pressure groups in the UK and Middle East and a huge swell of discord in Australia itself where the largest number of investors reside. All have one aim … “A Fair and Just Resolution for LM Investors and the Return of their Money”.
The group of TRNC based investors are getting together to add their weight to the fight for justice. However, whilst they have about 10 people on board now, they don’t know the names of the other 60 or so.
We are asking that all TRNC investors to contact me as the the TRNC Group Co-ordinator, so that we can swell their numbers and apply as much pressure as possible and you can reach me at email@example.com for more information or clarification.
If you would like to learn more about the activities of the pressure group, please click here where, amongst a great deal of useful information you will find a link to the FT article mentioned above.
You may also find more information about this case by reading the This is Money article click here
“The opinions, advice or proposals within the article are purely those of the author and do not, in any way, represent those of Cyprusscene”