Another AFR article, page-333

This is what I don't get - what was the plan? It's a bit like the underpants gnomes: Step 1, fake cash incoming by borrowing at 24%; step 2 something; step 3 We're rich!

What was step 2? It's not as if they could sell their shares, they're in escrow for five years. And what about the accountant, they'll be finished and decertified never to work again. Some big names in private equity and FC, what was in it for them? However was the money to be repaid if they knew - according to the AFR - that it couldn't be?

The AFR reads very badly but there is a LOT of smear - a lot of "an investor was Mr. X who was the acquaitance of a brother who knew a man who suicided for a Ponzi scheme" or "some funny names". It's like the AFR went down the list of holders and just threw whatever dirt they could on all of them.

But a few items, if factual appear damning. It's a pity you have to winnow through a long article of smear to find them. But there's still a lot missing.

It's a bit like a story about a bank robber without a getaway car. And no legs. Who can't get away. Surely there must've been more to this plan than that?

I feel bad, but I trusted the accounts (and the accountant). I also trusted the cash statements as I thought cashflow could not be faked.