OCTAVIAR INVESTORS STILL UP THE CREEK

Written on the 27 July 2010

OCTAVIAR INVESTORS STILL UP THE CREEK

INVESTORS in Wellington Capital’s Premium Income Fund are unlikely to receive any of the $202 million owed to them by failed Gold Coast financier MFS, says Wellington managing director Jenny Hutson (pictured).

Hutson, whose investment firm bought MFS (now Octaviar) after it went under in 2008, is disappointed’ by reports yesterday that MFS overstated its FY07 pre-tax profit by $65 million.

Former MFS chief financial officer David Anderson has faced public examination this week in the NSW Supreme Court.

“Their (MFS) pre-tax profit in 2007 included things that weren’t really profit, but were future transactions that had not yet taken place – these uncertain transactions were then booked in the account early to make the company look better,” says Hutson.

“They did it because they wanted and needed it to raise more capital and needed the share price to be higher when they were doing that.

“Wellington took over one of the funds after that collapse in a bid to save it – now I’ve got 10,000 investors who were attracted by what they thought was the success of MFS and with these statements there’s $202 million that probably won’t be distributed to us.”

Octaviar was placed in liquidation by Bentleys Chartered Accountants.

Earlier this year Hutson teamed up with S8 founder and former chief executive of MFS Chris Scott, to lead the Gold Coast-based listed childcare company Early Learning Services (ELS), now trading as G8 education, following a $40 million merger with Payce Childcare.


Latest News

1700 BRISBANE APARTMENTS NOW MANAGED BY FORTUNE 500 COMPANY JLL

MULTINATIONAL and Fortune 500 company JLL (NYSE: JLL) has expanded its Australian dominance in the property managemen...

HARVEY NORMAN HITS OUT AT 'FALSE NEWS' OF ASIC INVESTIGATION

RETAIL giant Harvey Norman (ASX: HVN) has vehemently rejected reports its accounts are under investigation by ASIC, s...

RARE GOOD NEWS FOR SLATER AND GORDON AS ASIC CLOSES INVESTIGATION

ASIC has cleared Slater and Gordon of deliberately falsifying its accounts after a three-month investigation.

It s...

Q & A WITH FACEBOOK GURU ANDY MCKEON AS HE JOINS AUSTRALIAN SOFTWARE COMPANY LIVETILES

HE was creative director at Apple under the legendary Steve Jobs, and is now a senior Facebook executive. In his n...

Related News

RAY OF HOPE FOR SLATER AND GORDON AS LENDERS STEP IN

EMBATTLED law firm Slater and Gordon (ASX: SGH) has announced to the ASX that it has launched confidential discussion...

SPROUTX PROVIDES THE SEED FOR AGTECH STARTUPS

AGTECH innovation fund SproutX has opened applications for its first accelerator round, backed by $10 million from...

GAS PRICES MAY FORCE BRICKWORKS TO TAKE MANUFACTURING OVERSEAS

BRICKWORKS Limited (ASX:BKW) chairman Robert Millner says soaring energy prices may force the company to turn to offs...

CHINA CONTINUES TO COLLECT AUSSIE PROPERTY ASSETS

CHINESE coin continues to dominate Australia's offshore real estate investment market, accounting for almost h...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter