Chartwell Collapse

[Tim the Toolman]

These investor's who've done 70m have no-one else to blame but themselves.

This is not another Pyramid for Geelong but just a greedy money grab that surprises nobody outside of the investment groups.

Fancy getting 70% returns and being stupid enough to expect little risk involved.

 

[Astro_]

I agree.

It all comes down to DYOR.

 

[Aquamarinejewel]

The hunt is now on for the missing millions....

Hunt for missing Chartwell funds
The Age
April 23, 2008 - 7:19PM

Investors may have to wait at least two weeks before knowing if they will recover any of their money lost in the failed share trading company Chartwell Enterprises.

Chartwell, run by flamboyant Geelong businessmen Graeme Hoy and Ian Rau, collapsed this week owing a reported $70 million to up to 80 investors.

The Nine Network tonight reported it had seen documents, since handed to corporate regulator, the Australian Securities and Investments Commission (ASIC), which it said suggested Mr Hoy was sending millions of dollars overseas before Chartwell's collapse.

The documents showed Mr Hoy had established companies overseas and had channelled millions of dollars into them, Nine reported.

The documents included papers referring to overseas tax havens, regular payments to and from a Vanuatu investment firm including one transaction worth $9 million, and a Hoy-led company established in the British Virgin Islands, Nine reported.

Also among the documents was a letter from the Commonwealth Bank seeking immediate repayment of a business loan of $3.69 million, Nine said.

Administrators have been appointed to Chartwell but creditors might face an uphill battle to retrieve their losses after the company's Geelong offices were ransacked by angry investors.

Administrator Bruno Secatore from chartered accountants Cor Cordis said he would hold the first creditors' information meeting on May 5.

"Hopefully, I'll be able to shed some light as to where we are with our investigations," he said.

But Mr Secatore said that while some records had been returned after the offices were ransacked on Monday, a lot of information was still missing.

"It's damaging to the extent for us that it's just going to hamper us to do our investigations properly," he said.

"Obviously, we've got some information that we can start investigating but if there's information not there, then it just makes it difficult for us to look at everything properly and, obviously, make it difficult for us to give the investors a better indication as to what their position is."

He said he should have a clearer picture by next week as to where the money is and hoped to be able to inform investors and creditors at the May 5 meeting.

"It's early days. I can't put a figure as to what the potential losses are," he said.

While Mr Hoy told Mr Secatore there were between 70 and 80 investors, he denied Chartwell had lost $70 million.

"Mr Hoy's only comment to that is there are losses, but it's certainly not that high," said Mr Secatore, who met Mr Hoy last night and had spoken to him on the phone today.

"He's been cooperative.

"He's pretty down in the dumps, pretty gloomy, very, very shattered as to what's happened. He's taken it pretty hard."

Mr Secatore said the majority of investors he had been in touch with had lost around $100,000 each.

Mr Hoy is the sole director of Chartwell, while Mr Rau sold out last week.

"Ian Rau was a 50 per cent owner of Chartwell. However, he resigned from his post as company secretary a week ago," Mr Secatore said.

"My understanding is, he has sold or transferred his 50 per cent shareholding to Black Swan."

Black Swan Holdings owns half of Chartwell.

PPB Accountants, the receiver of Black Swan, alerted ASIC to concerns over Chartwell's financial position after being approached by several employees.

ASIC today confirmed it was investigating.

PPB have seized Mr Hoy's assets, including a $6 million yacht and $900,000 Rolls Royce, PPB accountant Ian Carson said.

The assets will be sold through an expressions of interest process.

The freeholds of entertainment and restaurant venues, including the Wool Exchange and Riviera on Yarra, also would be sold, Mr Carson said.

Chartwell had allegedly offered investors returns of up to 70 per cent.

Mr Secatore said investment with Chartwell was high risk, given the promised return.

He said the company used investors' funds on a combination of investments on the futures markets and also for general working capital for running the company.

Victorian Premier John Brumby said Geelong was a large, strong city that could cope with the financial fallout.

 

[Equus]

Will Gatto be involved again?