pif related news, page-38

Marcom, When you have time do some research into MDRN and ASIC's investigation into solicitors mortgage investment schemes. Some background below:::
MDRN was founded in 1978 by Jon McCarthy and now consists of four partners and over fifty staff, located in offices in Cleveland and Capalaba, to the east of Brisbane in Queensland, Australia. From its early days as a small suburban law firm, MDRN has developed into a respected legal practice in the eastern Bayside suburbs of Brisbane, providing a wide range of legal services. The firm's property conveyancing services and business law services are particularly well-respected.


Recognising a need among the firm's clients and the public in general for secure investment opportunities, the partners established Lawyers Private Mortgages in 1997, to promote and manage mortgage investments.


In 1998 MDRN Investments was formed to manage the Property Syndication Division.
With changes in securities law in 1999, the management of both mortgage investments and property syndicates was transferred to MDRN Investments Limited. In July 2004 this company was acquired by Trilogy Capital Services Pty Ltd.::::

In August 2003, ASIC brought the class action against Lawyers Private Mortgages Pty Ltd (LPM) to obtain damages for the mostly retired investors from south-east Queensland. LPM was a practitioner nominee company of the Brisbane legal firm McCarthy Durie Ryan Neil Solicitors (MDRN), which promoted the solicitors’ mortgage scheme (the scheme).

The relatively inexperienced investors, whose original investments ranged from $5,000 to $250,000, were promised an annual return of 9.25 per cent. Their money was used by LPM to lend $1.4 million to Rivett Project Results Pty Ltd (RPR) in 1999. RPR was the developer of the Yandina Greens Retired Folks Village Pensioner Accommodation at Yandina, Queensland.

The loan defaulted in March 2000 and Jessup and Partners were subsequently appointed as the liquidator to wind up the scheme together with other schemes run by MDRN.

MDRN partners, Mr Jonathan McCarthy, Mr Bruce Durie, Mr Philip Ryan and Mr Ian Neil, who promoted and managed the scheme, were also included in the ASIC action.

The Federal Court subsequently found that MDRN made misleading statements as well as negligent misstatements when they promoted the mortgage scheme to investors. These statements concerned the asset position of RPR and its director Mr John Rivett, whose net asset position was considerably less than stated in the investment summary, while his company, RPR, had no net worth.:::::::Also check out Page 3 re Lloyds insurance::::www.trilogyfunds.com.au/site/pdf/Aegis%20Research%20Report%20Aug%2008.pdf -

Sound familiar, seems there are a group that keep re inventing themselves offering new schemes and funds to con a few more suckers or am I way off the track? Seamisty