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 Post subject: Re: The Custom House Capital Ponzi.
PostPosted: Sun May 25, 2014 9:54 am 
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Of Systemic Importance

Joined: Nov 4, 2011
Posts: 5500
Location: SthDub
Shane Ross gets his oar in
http://www.independent.ie/opinion/colum ... 01069.html
Quote:
Prime Time told the story of a Regulator asleep on the job, of auditors with questions to answer and directors whose activities have still seen no redress or prosecutions. Chief executive Cassidy was arrested but no charges were brought. Mulholland is still practising as a pensions adviser. Their victims are littered all over Ireland.
Sunday Times journalist Niall Brady wrote a superb synopsis of this scam. Nobody in authority took up the cudgel. A High Court judge called it a "Ponzi scheme" and likened CHC's activities to the Madoff empire in the US. But no one has been held accountable.


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 Post subject: Re: The Custom House Capital Ponzi.
PostPosted: Sun May 25, 2014 6:26 pm 
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Posts: 508
Location: North Dublin
Ross is on to something here.

Don't forget that the ever reliable Con Horan has gone back into the Regulator to continue his sterling work of regulating Irish financial institutions. Honohan is simply delusional if he thinks Irish regulation is anyway fit for purpose. This kind of complacency has a way of being exposed before too long.


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 Post subject: Re: The Custom House Capital Ponzi.
PostPosted: Sun May 25, 2014 8:32 pm 
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Under CAB Investigation

Joined: Jun 24, 2010
Posts: 2046
Location: Dublin 12
Yawn:
Same old, Same old sad Irish song:
No end of Regulations - but precious little Regulation!


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 Post subject: Re: The Custom House Capital Ponzi.
PostPosted: Sun May 25, 2014 10:47 pm 
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Posts: 5293
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Tis Meself wrote:
Yawn:
Same old, Same old sad Irish song:
No end of Regulations - but precious little Regulation!


Ah shure, we couldn't be enforcing the regs ...... there'd be no jobs fer us when we leave the regulator, & the boys wouldn't be taking us out for lunch every week.

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"Mr Kelly said Ireland’s “reputational capital” had been damaged by “chancers” such as ex-Anglo Irish Bank chairman Seán FitzPatrick, who had been abetted by “buffoons” such as former financial regulator Patrick Neary, Minister for Finance Brian Lenihan and the Taoiseach." - Irish Times 13th Jan 2009

"If you can't be a good example, then you'll just have to be a horrible warning." (Catherine Aird)


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 Post subject: Re: The Custom House Capital Ponzi.
PostPosted: Fri Dec 02, 2016 3:54 pm 
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Joined: Oct 29, 2007
Posts: 11531
Location: Multiverse
Quote:
The longest disqualification in the history of company law has been handed down by the High Court against a director of a collapsed investment firm who was found to have misappropriated €66.5m in client funds.

Two other directors of Custom House Capital (CHC) were also given lengthy disqualifications from acting as directors of firms.

Mr Justice David Keane said former CEO Harry Cassidy should be disqualified for 14 years, the longest ever handed down by the High Court, while investment director John Whyte received a ten-year disqualification, and non-executive director John Mulholland was banned for 12 years.

Mr Justice Keane said the appropriate disqualification period should be 15 years, but he reduced that in each case to take account of mitigating factors.
...
That report found CHC had improperly transferred funds of some €56.1m.


http://www.rte.ie/news/business/2016/1202/836096-longest-disqualification-in-history-of-company-law/

The article is worth reading for an overview of what they did.
I'm sure Grumpy may have something to add.

Incidentally, could a bank robber simply claim they were improperly transferring funds ?


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 Post subject: Re: The Custom House Capital Ponzi.
PostPosted: Fri Dec 02, 2016 4:12 pm 
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Has anyone done jail time on this? Or am I being ridiculous, this is Ireland after all?


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 Post subject: Re: The Custom House Capital Ponzi.
PostPosted: Fri Dec 02, 2016 4:29 pm 
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Posts: 11531
Location: Multiverse
FreeFallin wrote:
Has anyone done jail time on this? Or am I being ridiculous, this is Ireland after all?



You're bring ridiculous.
Don't you know your betters !


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 Post subject: Re: The Custom House Capital Ponzi.
PostPosted: Fri Dec 02, 2016 6:31 pm 
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Speculator

Joined: Apr 27, 2014
Posts: 431
There has to a composite German word for the act of making a token and insubstantial gesture of securing the stable door after the horse has bolted.

Quote:
Pferdeboxturverriegelnnachpferdfluchttokenunwesentlichgestenung


So €66.5 million of money stolen and squandered. €2.3 million of fees illegally earned and retained from this.

Any trial for illegal activities?

Any prison time?

Have they been forced to repay the fees earned from their illegal activites?

Has the Central Bank been held responsible for ignoring the information provided by a whistleblower and allowing the illegal activities and thus the losses continue?

None of the above. Just a disqualification from being a company director. It is like been severely rapped with a feather.

The Central Bank person responsible for this fiasco has been promoted.

Meanwhile the career of the whistleblower who tried to do the right thing has been destroyed?

http://www.irishtimes.com/business/fina ... -1.2890704

Quote:
Ex-Custom House Capital chief disqualified for 14 years

Director of collapsed investment firm found to have misappropriated €66.5m in funds

The longest disqualification in the history of company law was handed down today against a director of a collapsed investment firm found to have misappropriated some €66.5 million in client funds.

Two other directors of Custom House Capital (CHC) were also handed lengthy disqualifications by the High Court from acting as directors of firms.

Mr Justice David Keane said former chief executive Harry Cassidy should be disqualified for 14 years, the longest handed down by the High Court.

Investment director John Whyte received a 10-year disqualification while non-executive director John Mulholland was banned for 12 years.

Mr Justice Keane said the appropriate disqualification period should be 15 years but he reduced that in each case to take account of mitigating factors.

He said the conduct of all three was “deeply dishonest, continued over a protracted period of time until, for a variety of reasons, it could no longer be concealed”.

He said it was “devastating in its impact on those innocent person who had the grave misfortune to entrust the company with their pensions or savings”.

The case comes back in the new year for costs and to allow Mr Mulholland apply to have his disqualification period backdated.

CHC was liquidated in 2011 after a High Court-appointed investigation by two Central Bank inspectors found the “systemic and deliberate misuse” of clients’ money, the majority of which represented transfers to syndicated property investments.

Liquidator’s evidence

CHC liquidator Kieran Wallace subsequently sought the disqualification orders.

Mr Cassidy was not represented in the case and had written saying he was not contesting the liquidator’s evidence.

Mr Mulholland accepted he had failed in his corporate responsibility but asked for a restriction on involvement in a company rather than a disqualification.

Mr Whyte opposed the application.

Bernard Dunleavy SC, for the liquidator, said the findings in the Central Bank report had not been challenged by any of the three.

The longest disqualification in the history of company law was handed down today against a director of a collapsed investment firm found to have misappropriated some €66.5 million in client funds.

Two other directors of Custom House Capital (CHC) were also handed lengthy disqualifications by the High Court from acting as directors of firms.

Mr Justice David Keane said former chief executive Harry Cassidy should be disqualified for 14 years, the longest handed down by the High Court.

Investment director John Whyte received a 10-year disqualification while non-executive director John Mulholland was banned for 12 years.

Mr Justice Keane said the appropriate disqualification period should be 15 years but he reduced that in each case to take account of mitigating factors.

He said the conduct of all three was “deeply dishonest, continued over a protracted period of time until, for a variety of reasons, it could no longer be concealed”.

He said it was “devastating in its impact on those innocent person who had the grave misfortune to entrust the company with their pensions or savings”.

The case comes back in the new year for costs and to allow Mr Mulholland apply to have his disqualification period backdated.

CHC was liquidated in 2011 after a High Court-appointed investigation by two Central Bank inspectors found the “systemic and deliberate misuse” of clients’ money, the majority of which represented transfers to syndicated property investments.

Liquidator’s evidence

CHC liquidator Kieran Wallace subsequently sought the disqualification orders.

Mr Cassidy was not represented in the case and had written saying he was not contesting the liquidator’s evidence.

Mr Mulholland accepted he had failed in his corporate responsibility but asked for a restriction on involvement in a company rather than a disqualification.

Mr Whyte opposed the application.

Bernard Dunleavy SC, for the liquidator, said the findings in the Central Bank report had not been challenged by any of the three.

That report found CHC had improperly transferred funds of some €56.1 million. It separately invested about €10.4 million in a fund of its own creation known as the “Mezzanine Bond Fund” without informing clients and while furnishing misleading information to both the clients and to the Central Bank.

CHC committed itself to a number of property projects and placed deposits in advance of securing the required equity from prospective investors, the inspector’s report said.

When the property crisis emerged in 2007, CHC found that expected investment was not forthcoming. In fear of loss of the initial deposits, and damage to reputation, CHC sought to cover investment shortfalls through the creation of products such as the Mezzanine Bond and eventually through misuse of client holdings.

The inspectors found “systematic and deliberate misuse of assets and cash belonging directly or indirectly to clients”. The misuse was deliberately disguised through the use of false accounting entries and misleading statements to clients.

Among the report’s findings against the directors was that they gave inadequate attention and resources to compliance matters and facilitated a culture of evasion of internal controls and the overriding of such controls.

In his disqualification application to the court, the liquidator also presented evidence of wrongful payments of “commission”, failure to keep books of account and undisclosed profits earned through directors’ roles.

Misapplication of funds

Mr Justice Keane, in his judgment, said an example of the misapplication of funds was the withdrawal of €3 million from a pooled equity account held with a Dublin stockbrokers. This was only to be for investment in equities but was instead used to make payments on behalf of two of CHC’s property holdings special purpose vehicle companies (Holstein Retail SA and Schwelsig Retail).

In another example, the judge said, 51 CHC clients who invested about €5.9 million in commodity bonds were not told they had been redeemed in November 2009 for €7.3 million. CHC used more than €1.1 million of that to repay monies due to other clients who had not invested in those bonds.

In December 2009, CHC loaned €2.5 million of those same bond monies on a six-day basis to a Dubai property development company which needed to show evidence of an ability to access substantial funds to secure a contract.

The judge also said Mr Cassidy and Mr Mulholland made undisclosed profits in the form of authorised “commission” payments from client funds totalling €2.3 million. The court heard this was without the knowledge of Mr Whyte.

The judge was satisfied all three directors had been guilty of a fraud on the company, or on its creditors, or both.

Mr Whyte had, in his defence, asserted that Mr Cassidy had a “domineering personality”, the judge said.

While this might, if established, provide some mitigation for Mr Whyte, it could not exculpate him.

Mr Whyte had also said if he had exposed Mr Cassidy, a panic might ensue leading to a run on the company and greater loss to clients.

While that might, if accepted, provide some mitigation for Mr Whyte, it “cannot excuse his failure to halt, much less his active complicity in, Mr Cassidy’s fraudulent conduct”, he said.


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 Post subject: Re: The Custom House Capital Ponzi.
PostPosted: Sun Dec 04, 2016 7:28 pm 
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Of Systemic Importance

Joined: Jun 9, 2008
Posts: 7056
FreeFallin wrote:
Shane Ross gets his oar in
http://www.independent.ie/opinion/colum ... 01069.html
Quote:
Prime Time told the story of a Regulator asleep on the job, of auditors with questions to answer and directors whose activities have still seen no redress or prosecutions. Chief executive Cassidy was arrested but no charges were brought. Mulholland is still practising as a pensions adviser. Their victims are littered all over Ireland.
Sunday Times journalist Niall Brady wrote a superb synopsis of this scam. Nobody in authority took up the cudgel. A High Court judge called it a "Ponzi scheme" and likened CHC's activities to the Madoff empire in the US. But no one has been held accountable.


The depressing thing about this is that all they get is a disqualification. This is ridiculous. I mean FFS, what's that going to achieve? And the really depressing thing is that the judge - who seems like a whole asshole - manages to take a long piss on the victims by not maxing even that pointless exercise.

Quote:
Mr Justice Keane said the appropriate disqualification period should be 15 years, but he reduced that in each case to take account of mitigating factors.


That is simply abhorrent.

In relation to criminal acts, the crime of false accounting carries a maximum tariff of 10 years

Quote:
10.—(1) A person is guilty of an offence if he or she dishonestly, with the intention of making a gain for himself or herself or another, or of causing loss to another—

(a) destroys, defaces, conceals or falsifies any account or any document made or required for any accounting purpose,

(b) fails to make or complete any account or any such document, or

(c) in furnishing information for any purpose produces or makes use of any account, or any such document, which to his or her knowledge is or may be misleading, false or deceptive in a material particular.

(2) For the purposes of this section a person shall be treated as falsifying an account or other document if he or she—

(a) makes or concurs in making therein an entry which is or may be misleading, false or deceptive in a material particular, or

(b) omits or concurs in omitting a material particular therefrom.

(3) A person guilty of an offence under this section is liable on conviction on indictment to a fine or imprisonment for a term not exceeding 10 years or both.


http://www.irishstatutebook.ie/eli/2001 ... rint#sec10

Wouldn't that at least send a message? Of course, since the regulators could be made to look like the completely inept assholes that they are, best to sweep the criminal aspects of it under the carpet.

And with Rush Credit Union rumbling on for years, plus ça change, plus c'est la même chose.

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 Post subject: Re: The Custom House Capital Ponzi.
PostPosted: Mon Dec 05, 2016 10:55 pm 
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Of Systemic Importance

Joined: Jun 9, 2008
Posts: 7056
Quote:
The Court case over fees and what went on in Custom House Capital rumbles on. The next court case is due to be before the Examiner’s Court on 4 February 2016. In the meantime, according to the last Liquidator’s Statement of Proceedings and Position of Winding Up which was submitted to the CRO on 30 November 2015, the liquidator’s fees for 2014 are €846,716 and legal fees for that year are €539,788. In the meantime, the victims of Custom House Capital are told nothing.


http://www.bluewaterfp.ie/general/the-f ... e-capital/

Worth reading.

http://www.bluewaterfp.ie/wp-content/up ... dacted.pdf

Worth reading if you have any faith in the system. You should not.

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“Don't ask the barber if you need a haircut—and don’t ask an academic if what he does is relevant.” Nassim Nicholas Taleb


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 Post subject: Re: The Custom House Capital Ponzi.
PostPosted: Mon Dec 05, 2016 11:06 pm 
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Joined: Jun 9, 2008
Posts: 7056
Kind of staggering that John Mulholland is still in the pension scene. Didn't CHC decimate enough people for him to do the honourable thing and become an hero?

Passed over the pension biz to his kid, Johnny, but still a shareholder in two pension advisory companies...

https://www.scribd.com/document/3333337 ... 0-2016-pdf

https://www.scribd.com/document/3333337 ... 2-2016-pdf

This guy should be in Mountjoy. Some system. And people still trusting him (bwahaaa it was Harry's fault). Darwinian losses...

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“Don't ask the barber if you need a haircut—and don’t ask an academic if what he does is relevant.” Nassim Nicholas Taleb


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 Post subject: Re: The Custom House Capital Ponzi.
PostPosted: Tue Dec 06, 2016 12:18 am 
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Joined: Dec 2, 2013
Posts: 2305
You clearly can't rely on the regulator so what are the lessons for investors and pension investors ?

Share Certs need to be in your own name ?
Co-ownership schemes for property are a very bad idea ?
Leaving large cash balances with investment firm is very bad idea ?

Should pensions be avoided altogether ? Just buy big dumb income earning shares ?


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 Post subject: Re: The Custom House Capital Ponzi.
PostPosted: Tue Dec 06, 2016 6:35 pm 
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Joined: Apr 27, 2014
Posts: 431
John Whyte Date of Birth 23 May 1970

Westlane Holdings Limited - dissolved, director with John Mulholland and Ruth M Woods
M & F Finance (Ireland) Limited – in receivership director with John Mulholland and Ruth M Woods and Harry Cassidy

John Mulholland Date of Birth 13 Dec 1950

Various addresses at

39 Glen Lawn Drive
Cabinteely
Dublin 18

Foxes Covert
Mount Juliet
Thomastown
Co. Kilkenny

Director of:

The European Pensioneer Trustee Company Limited 86928 - active
Brockpem Management Limited 142805 - resigned
Investment Property Company Of Ireland Limited 163111 - resigned
Baracroft Limited 215793 - resigned
Countford Limited 307314 – resigned, Martin Caldwell, brother of John Caldwell of Jackson Way fame was a director
Windsor Wealth Management Limited 429910 director with Ruth M Woods

Harry Cassidy Date of Birth 05 July 1956

Merrion Employment Services Company Limited By Guarantee 386948 - resigned

Investment Property Company Of Ireland Limited 163111 - John Caldwell, of Jackson Way fame, John Redmond, corruption, Planning Tribunal, large compensation claim, etc. also a director with an address of:

Ballachrink House
Glen Mooar Loop Rd
St Johns
Isle of Man IM4 3AG


So a connection between Harry Cassidy and John Caldwell. Who would have thought?


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 Post subject: Re: The Custom House Capital Ponzi.
PostPosted: Wed Dec 07, 2016 5:04 pm 
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Joined: Oct 29, 2007
Posts: 11531
Location: Multiverse
Remind me again, did the Auditors pick up or miss the fraudulent transactions ?


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 Post subject: Re: The Custom House Capital Ponzi.
PostPosted: Wed Dec 07, 2016 5:21 pm 
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User avatar

Joined: Apr 2, 2008
Posts: 1995
Location: Cork and Kerry
Image

Custom House Capital: From left, director John Mullholland, chief executive Harry Cassidy and investment director John Whyte

:evil:

At least you can see what some of these people look like should you ever come into contact with them.

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