Ralan Part 9

Part 9 Recorded 05 September 2019

  1. Hello everybody, this Part 9 of Ralan Ponzi Scheme series. I am Matthew Bransgrove.
  2. Now after Ralan Part 8, we have some people come back to us and ask about the court judgement.
  3. The court judgement is published on the internet.
  4. We recently posted the answers to WeChat questions.
  5. These were 54 questions they you asked us on WeChat.
  6. In one of those answers we gave the link to the judgement.
  7. Anyone who has any questions please put them on our WeChat. We will wait until we have big bench of them and sit down and answer them. I will try to answer them once a week.
  8. I have here a letter that I sent to Grant Thornton. It has been posted on our WeChat it is date 5th September. I posted two versions, one English and one Chinese.
  9. What I said to Grant Thornton is this seems to be three ways that Ralan raise money.
  10. First, they asked genuine buyers to release their deposits.
  11. Second, they used the people who are not genuine buyers but gave them a false pre-sales contract anyway. They gave them a special side letter. The side letter said that they could get out of the contract to purchase the property anytime before ten months. This meant the contract was a sham, because it was only binding on one party, Ralan, not the buyer.
  12. Finally, there were contracts they entered into with the people they thought they could trust. This was mostly the Ralan salesman. It seems that sales people did not trust Ralan. They insisted on the proper loan agreement.
  13. The loan agreement made no mention of the pre-sale contract. It stood alone and a Judge reading it would not think it had anything to do with a pre-sale contract.
  14. However, this loan agreement was also accompanied by a false pre-sales contract with a deposit equal to the amount in the loan agreement.
  15. The sales staff would get 20% per annum interest, not 15% per annum interest which every else was getting.
  16. In return, I am guessing they were going to tell people who asked that the pre-sales were genuine—but they were not genuine.
  17. I want you to think about it, why would someone who wants to earn 20% per annum buy units which only yield 4 or 5% per annum.
  18. So I told this to Grant Thornton. Then I said but you already know about this, because the victims have sent these documents to you with their proof of debt.
  19. The purpose of my letter it to tell you what it means. I explained that I am an expert in construction finance. I have been doing it for 20 years.
  20. I also explained that I have written a book called Avoiding Mortgage Fraud. It has a chapter on false pre-sales. That means I am an expert on fraudulent pre-sale contracts.
  21. There is only one reason a developer like Ralan would create false pre-sales. It is because they wanted to trick a construction funder into lending them money. The construction funder will only lend money if the development has pre-sales.
  22. So we can assume Ralan was defrauding Wingate and Westpac.
  23. I came across a letter from Ralan’s solicitor, enclosing one of these false pre-sales contracts. So I called him on telephone. We had a chat.
  24. He said he did not know about the false pre-sales. As far as he was concerned, he received the instructions and they were the real pre-sales.
  25. He also told me something interesting. He said that from time to time the construction funders would ask him to box all the pre-sales contracts for a project into plastic boxes.
  26. Then a courier would come to pick it up and deliver them to Ralan’s construction funders. This is the normal industry practice. The lender has to check the contracts are genuine.
  27. They have their lawyers. Someone like me. Go through the contract and check the signatures. They asked for the originals because they want to make sure it is real ink and not something falsified on a computer.
  28. That tells me that Ralan’s lenders Westpac and Wingate were doing good due diligences. They did not trust Ralan. Which is proper practice.
  29. I know what they did next because I am a lawyer who does this job myself. The next job was to check the deposits were in the trust account.
  30. Another reason we know they did this is because Ralan broke up big loans into small receipts to look like pre-sale contract deposits. That tells me Westpac and Wingate were looking at the trust account deposits.
  31. Ralan operated its own trust account. There is an obvious risk. The risk is they will alter their accounts to show money in their trust account that were not in the bank account.
  32. Therefore the only way Westpac and Wingate could do meaningful due diligences was to look at the bank statements themselves and talk to the bank to make sure the money was there.
  33. It is called audit. It is not complicated. There is no room for error. The money is either in the trust account or not.
  34. There is $292 million missing. So it was not in the trust account. So what happened?
  35. I have been thinking and thinking and there is only one explanation I can think of. They did check to see the deposit that was paid and they saw that the deposit was then released, and they were ok with that.
  36. In other words, Ralan told them that they were borrowing money from their buyers. If I can prove that. You could get your money back.
  37. That is what I told Grant Thornton. I said drop everything you be looking at that one question. I need emails, I need letters, I need other evidence that is what happened.
  38. I need it as soon as possible. There were literally thousands of people who had lost their life savings.
  39. Now you must listen to me. I can write a letter. But Grant Thornton will not listen because I am just one person. I have no power. But you have power.
  40. The people I am talking to in this video have $292 million they have lost. The law will give them respect. Grant Thornton is there to protect your interests. If you give me authority to write to Grant Thornton on your behalf, they have to answer.
  41. So think about it because in a few days time, I am going to ask everybody to appoint me as their solicitor to write to Grant Thornton and ask them very important questions.
  42. I have seen that there are some reservations by people on WeChat who are worried. They want to know about the class action. They want to know about the litigation funding. They want to know how it all works.
  43. I have 3 or 4 more videos. To explain everything. Then I think I have done everything I can to educate you for the moment.
  44. Then it is time for me to ask for you to give me the authority on your behalf to speak to Grant Thornton and get that information.
  45. I am not going to ask today because I want to finish telling you everything you need to know about the whole process. I want you to ask me a lot of questions on WeChat.
  46. I am going to answer them all. And when everybody is happy. Then we would move forward and start to get your money back.
  47. Thank you very much and I will see you next time.
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