Ralan Part 4

The Grant Thornton slides which were presented at the first creditor meeting.

Transcript of Ralan Part 4, Recorded 29 August 2019

  1. Today is part 4 of our series on the Ralan Ponzi Scheme.
  2. Today we are going to go through the Grant Thornton investor slides from the first creditor meeting.
  3. You will recall first three videos we moved through time with the story of Ralan as I understand it.
  4. Now we have reached the appointment of the administrator. Pretty much everything we know about the administration is contained in this document.
  5. In part 5 of this series, I am going to discuss what the debentures scheme is and the very strict laws that are in place to stop just this sort of thing happening.
  6. Will then look exactly what the evidence shows so far about what Ralan and others did.
  7. In part 6, I will be telling you my case theory and why I believe you can recover money.
  8. Michelle Ma, who works for me, has very kindly translated this document into Chinese.
  9. She is in the room right now but she is not on the camera. Thank you Michelle
  10. That document has been posted on our WeChat group and on our website.
  11. I have the English version and Vivienne has the Chinese version. The page numbers are the exactly the same.
  12. When the news broke that the Ralan was in the liquidation the media release given by Grant Thornton said that $500 million was owing in unsecured debt.
  13. Unsecured debts means the people who are owed the money do not have a mortgage over any property to secure the debt.
  14. Today is the 29th of August 2019 and I still do not know what the $500 million is made up of.
  15. This document only shows $277 million.
  16. I draw your attention to page 5 of the document.
  17. Here we have the background of the administrators’ appointment.
  18. The administrators on this page are attempting to establish that they do not have a conflict of the interest. To put that crudely they are attempting to say that they are not the best friends with William O’Dwyer, or anyone else who would have motivation to influence them.
  19. It says they first met William O’Dwyer on William O’Dwyer on 29 July 2019.
  20. This document says that the meeting was at Deloitte. Deloitte is another large firm of accountants. There is nothing here to explain why Deloitte introduced the administrators to William O’Dwyer.
  21. However in the first creditor’s meeting Said Jahani said Deloitte were the accountants of Ralan.
  22. I suspect that this administration was carefully planned for some period of time before it happened.
  23. It certainly seems that Grant Thornton managed to put all the figures for this document together very quickly. It is likely that Grant Thornton was provided by these figures by Deloitte.
  24. I also draw your attention to the fact that the administration occurred on the last day of the last financial year. If you are a suspicious person you might think that it was for some particular reason.
  25. For example, the financiers Westpac, Wingate or perhaps the builders, would not have to declare the bad debts if they occurred on the last day of the financial year.
  26. After the administrators were appointed Wingate appointed Deloitte as a receiver to four properties.
  27. Again, if you are suspicious, you would think this was more than coincidence.
  28. I suspect there is some pre-existing relationship between Wingate and Deloitte in relation to Ralan.
  29. Perhaps I am wrong, perhaps they appointed Deloitte because they reasoned that Deloitte knew about Ralan.
  30. I am now on page 6.
  31. Although we have seen on previous pages there are a large number of companies in administration page 6 shows that the most of those companies are not trading.
  32. There is one company for Ruby Tower 1, one company for Arncliffe, ten companies associated with the Gold Coast Developments that have not begun. Then there is the main culprit, Ralan Capital.
  33. There are also four real estate management companies. I believe they are associated with the past buildings Ralan developed in Sydney.
  34. I now take you to the page 10. I was surprised to see the expression shortfall from the trust used by the administrator.
  35. It is a difficult question. However the money is not the trust money. The money was released and loaned to Ralan Capital. Accordingly there was no technical shortfall of trust money.
  36. In the Australian system of law, trust money is sacred. If you have a trust account, it is not your money and you must not touch it. If a company goes into liquidation and it has trust monies the creditors cannot touch it. It must go back to the person it belongs to.
  37. Here victims signed documents that took the money out of trust and loaned it to Ralan Capital.
  38. In Ruby 2, the shortfall is $59 million.
  39. This is the money that has been loaned to Ralan Capital. Money which started as a deposit held in trust.
  40. Now I have heard rumors from several people that some investors loaned money to Ralan without buying units. Documents were falsified to make it look as though they had bought the units.
  41. If you are one of those people, I need to talk to you. That may be key evidence.
  42. It may be that Wingate needed to see that the money being loaned to Ralan was a released deposit. If I can prove that, it would have a huge effect on this case.
  43. Ruby 3 has a $60 million shortfall.
  44. Ruby 4 has a $39 million shortfall.
  45. Sapphire has a $60 million shortfall.
  46. I now reach page 13.
  47. Ruby 1 has a $3.6 million shortfall.
  48. I have heard rumours that Wingate is attempting to settle those remaining units. I have also heard that they are asking buyers to replace the missing deposits.
  49. For legal reasons, I do not think they are able to do that. If this is happening to you, you should contact me. This is the mortgage law, and remember I am the leading expert in Australia on mortgage law.
  50. I am now on page 14, where it says the total shortfall is $277 million.
  51. There is no mention of where the rest of the $500 million in unsecured creditors is owed.
  52. I do not think there are $500M in unsecured creditors.
  53. Before I finish today, I want to comment on something the administrators said.
  54. They said they were going to try to organise the completion of Arncliffe. I think that is completely wrong and not at all possible.
  55. When a construction goes bad, the bank takes over and finishes the project. They certainly are not interested in an administrator who does not work for them dealing with their asset.
  56. That’s all what we have for you in this part of the video series.
  57. Thank you for joining us. I know it is lot to absorb, but you need to understand your case to make the decision. Thank you again.
  58. Thank you for the people who load up the videos to the Tencent.
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