the plot thickens..unbelievable

Riqueza files show favourable treatment for directors
Email Print Normal font Large font AdvertisementVanessa Burrow and Mark Hawthorne
April 12, 2008

COMPANIES related to Opes Prime directors Laurie Emini and Julian Smith consistently received favourable treatment, documents handed to underworld figure Mick Gatto reveal.

During his brief visit to Singapore, ostensibly on a search for lost millions, Mr Gatto received a swathe of portfolio statements from former Opes Prime employee Jay Moghe.

They show the loan-to-valuation ratio (LVR) for companies linked to Opes Prime was between 85% and 100%, meaning that in some cases, the entire value of the shares was leveraged.

Among the documents are statements from Mr Moghe's company, Riqueza, which the administrators to Opes Prime believe was used to manipulate clients' share-trading accounts.

Mr Moghe yesterday said he did not have a margin lending account with Opes Prime. "I didn't have any stock or cash placed personally," he said.

The accounts for Riqueza, which is now controlled by administrators at Ferrier Hodgson, were addressed to himself and an Opes Prime administrative assistant. The statements show one Riqueza account received a margin call of almost $24 million last July 13. But other Riqueza accounts had an even bigger available margin.

Mr Moghe also handed over statements for several other companies linked to Opes Prime, many of which counted Laurie Emini or Julian Smith as directors. They include statements for Seven 95 Pty Ltd, Two 95 Pty Ltd, Storas Capital, Pasuri Capital, Same Investments (Aus) Pty Ltd and OP Hedged Strategies Pty Ltd, as well as Opes Prime client Chris Murphy's companies Cardiac Jolt and Sarah Brown.

One of the accounts, Same Investments (Aus) Pty Ltd, was given a LVR ratio of 100% on speculative stock Admiralty Resources, while BHP Billiton had an 80% LVR.

In contrast, Lift Capital, which was placed in administration yesterday, offered a maximum LVR of 75% on high-quality stocks and 35% or 40% on smaller stocks. It also insisted that clients who took out margin loans on smaller stocks had a diversified portfolio.