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

CROMWELL CALLS FOR FULL DISCLOSURE FROM INVESTA

CROMWELL Property Group (ASX:CRM) has claimed Investa Office Fund (ASX:IOF) has not disclosed material information ab...

FRAUD CAUSES SILVER CHEF PROFIT SLIDE

EQUIPMENT financier Silver Chef (ASX:SIV) has seen its half-year profit slide due to fraud.

The Brisbane company r...

MEGAPORT QUADRUPLES REVENUE AND INVESTS IN EXPANSION

MEGAPORT (ASX: MP1) increased revenue 345 per cent to $4.46 million in the six months to 31 December 2016, the com...

IN-STORE VETS BOOST GREENCROSS' PROFIT

GREENCROSS Limited (ASX: GXL) shares lifted 5 per cent in trading today after the Brisbane-based company posted a ...

Related News

WHY EMPLOYEE-OWNED COMPANIES ARE BEATING ASX200 SHARE PRICES

EMPLOYEE-owned companies command a higher share price than their publicly listed peers, reaping a 17 per cent prem...

RISE OF THE MACHINES HAS WORKERS SWEATING

UP TO 3.8 million Australian workers are fearful their job may soon be terminated by a robot, a new survey has shown....

LESS TALK, MORE SMALL BUSINESS ACTION IN 2017

THE future growth and prosperity of Australian SMEs could be undermined if governments lose sight of the sector...

TEST DRIVE A POST GRAD AT BOND

THERE'S only one way to really move your career into the fast lane, says Bond University, and 'test driving...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter