Down goes an alleged property ponzi scheme

Spending clamps put on high-flyer accused

Veronica Macpherson, the boss of what financial regulators allege was a massive Pilbara Ponzi scheme, has been ordered by a court to spend no more than $800 a week on herself as it emerged her group of companies now allegedly owes investors, financiers and creditors at least $250 million.

As the companies comprising Ms Macpherson’s floundering property empire were officially shut down this week, ASIC documents revealed the staggering debts allegedly faced by the once high-flying entrepreneur.

Authorities suggest hundreds of investors waiting for a possible return of any money are likely to be disappointed.

A provisional liquidator’s report by auditors KPMG found “a real prospect there will be insufficient recoveries to allow for any return to unsecured creditors”.

In total, ASIC estimates the total owed by the companies now tops $250 million, with some of the debt accruing 50 per cent interest a year.

One of those entities, Macro Realty Developments, was said to be at least $41 million in the red.

Another of the companies, 511 GTN, shows an asset deficiency of $5.3 million and Pilbara Property Developments is $1.4 million down.

Previous articles as the slow topple hits:
http://www.theaustralian.com.au/bus...k=81fe7580ee406f86c565ecaf03cf4b9b-1496709167

ASIC probes alleged Pilbara Ponzi scheme

Property developer is making a dating reality TV show 'FIFO Wants A Wife' to pay off her $190 MILLION debts | Daily Mail Online

 

I suspect there will be similar worms coming out of cans down in Sydney and Melbourne as well when things get bad.

 

How can debt accrue 50 per cent interest a year?

 

There would be some 50th tier lenders involved and many many penalty rates for not paying within the prescribed amount of time.

Not only was it a Ponzi Scheme but the property spruiked within it crashed so well that there was no hope for it. It was selling the WA equivalent of Gladstone - mining town high risk stuff.

 

OPM... the irresistible drug.

 

Macro Realty and spruiker Jamie McIntyre banned from promoting Pilbara scheme

There were a few other names that I saw with Macros Realty who had been with other companies of this ilk

It's funny some of the names you see jump from one of these types of company to the next, or branch out into their own over the years

 

YIP

2021 update

Looks like back to business, Macro Group of companies collapsed in 2016, owing creditors more than $285 million.

Alleged Ponzi operator Veronica Macpherson poised for return to business

A woman accused of running an alleged Ponzi scheme in Western Australia's Pilbara region is poised to make a fresh start in business, vowing she has done nothing wrong.

Most of the investors who contributed more than $120 million to Veronica Macpherson's Macro Group of companies are likely to never see their money again.

Ms Macpherson is preparing to be discharged from her three-year bankruptcy, while investigations by the corporate watchdog into her Macro Group business dealings are continuing.

From a business address at Ephraim Island on the Gold Coast, she has registered a new company called Karmic Resources.

Although she is permanently banned from providing financial services, she is still committed to her plan to develop Pilbara housing, allowing fly-in, fly-out mine workers to shift to the region, via a co-operative company structure.

 

Looks like the story has been going since the 2017 posts here

2019 update

Malaysian investors in suspected Pilbara Ponzi scheme visit WA in bid to recover lost millions

It is a money trail which has led a band of Malaysian men from swanky five-star Asian hotels to the red dirt of the Pilbara, and finally to a cafe in a Perth suburban cinema complex

The six men, who say they lost $1.5 million between them when an alleged Ponzi property scheme masterminded by WA businesswoman Veronica Macpherson collapsed in 2016, have travelled far to find out where their money has gone.

They were wooed to invest by lavish dinners in expensive hotels, 'Kick the Red Dirt' tours of the Pilbara and slick marketing brochures.

The men were among about 2,000 investors, mostly from Malaysia and Singapore, who lent Ms Macpherson $120 million to build housing for fly-in, fly-out workers in Newman and Port Hedland

 

Ouch massive amounts lost. Was it completely dodgy or if property prices didn't crash would it have survived or made money?

 

I'm a bit paranoid so "a business address at Ephraim Island on the Gold Coast" is enough to be a red flag to me

 

Penthouse?

 

Greed on both sides. All it takes is the right conditions and people throw money at people too eager to just take it. Perfect climate for gullible people from overseas. Its never a surpise when you hear of hotels, trips and lavish dinners. etc.

ASIC and a trustee in bankruptcy may have issues with managing a business. It looks like nothing has changed as karmic and Macro are both just sole trader trading names. But its just sole trader names at best so no Corporations Act breach yet. Pheonixing a old activity as something new is just so Peter Foster isnt it ?

The address is the one thing a sole trader cant hide:
5103 Ephraim Island Parade Paradise Point QLD 4216 or is it
1769 Neaves Road Bullsbrook WA 6084 ?

Current details for ABN 87 419 887 869 | ABN Lookup

 

I cant believe the stupidity of some, I am no financial guru but would rather manage my own assets and accept the responsibility for my mistakes ...