The Drake Eureka Years

The Eureka! Years

Did the final years of FMIF operation sew the MPF Ponzi seed?

LMIVC take a critical look at the FMIF 2006 to 2009 accounts to reveal some astonishing data patterns!

The following year by year commentary references the FMIF Account Data table below which is compiled from audited account reports filed with ASIC..

..after 7 years of year on year growth from 1999 the FMIF reaches it's peak with 877m units issued (184m increase over 2005). However units redeemed also climb to a nine year high with a probable increase in redemption queue / delay that, together with the first report of loans in default (of $40.9m), drive LMIM to take up the $30.4m Commonwealth Bank of Australia loan. In summary the threat to distribution from defaulting loans and a steep rise in redemption requests was masked by the CBA loan and a healthy but mis-representative 7.12% (of fund size) was returned to investors in distributions. Clearly an attempt to deceive potential new investors by disguising the fund's true status with an undeniable step into ponzi territory. 2006 net operating income is a significant step function increase over the average for the previous four years and comes, oddly, as loans in default and unit redemptions begin to grow. In simple terms, rewards to existing investors being subsidised by new investors, in this case the Commonwealth Bank of Australia.

..continues to display the high trend in redemptions (459m compared to 347m in 2007) taking the year end Units on issue to 481m, well below the 2005 figure. Not withstanding a third year on year increase in defaulting loans to almost $100m, 20% of fund value, operating income is reported at almost the 2007 level resulting in a net operating income of 10.32% (of fund size), the highest in the funds history! With four key indices displaying high alarm, confirmation that investor distribution gearing to core fund objective has become an abstract and ponzi status confirmed.

LMIVC claim the MPF ponzi scheme was crafted around LMIM's discovery of ASIC's impotence during the FMIF 2006-2008 years.

ASIC failed to detect that over the 2006 to 2008 period FMIF return to investors became completely disconnected from a seriously declining fund performance. The LM FMIF between 2006 and 2008, prior to it's closure in 2009, was a living lie. An evil and ugly rehearsal for the ensuing misappropriation of a further Au$350m defrauded from elderly investors around the world by LMIM under the sinister cloak of the unregistered MPF. The MPF is demonstrated to be a ponzi scheme from 2008 by The MPF Death Slide.