share vulture shamed

Share vulture shamed
By Craig Binnie
December 8, 2004

SHARE market leech David Tweed's family has turned on him, pleading with the multi-millionaire to stop preying on elderly investors.

In a pre-Christmas plea to the family's greedy black sheep, sister Cindy Tschernitz revealed she and her parents were embarrassed to be related to the man who has boasted of reaping $10 million profit from exploiting naive investors last year.

"I want him to stop. He is bringing this family into disrepute. He has brought shame on us," she said.

"He is socially isolated and has no friends. And he doesn't care."

Mr Tweed made his money by writing to elderly and inexperienced shareholders, offering to buy their shares for much less than they were worth.

Mr Tweed's sister and their parents were co-directors of Tweed companies until about three years ago when they quit after becoming unhappy about his conduct.

The family said they trusted Mr Tweed when he started out because he was a stockbroker and they had no inkling of his deceptive actions.

A Herald Sun investigation has confirmed Mr Tweed:

WAS born David Tschernitz but changed his name by deed poll because he believed it sounded more trustworthy. His family believes he was embarrassed by his origins and name.

COULD be worth more than $20 million but refuses to spend his money. His de facto wife Donna Newman drives an ageing Ford Fairmont. Mr Tweed rides a bicycle.

HAS three children by Ms Newman, named Hope, Faith and Paul Predator Newman, his sister said.

RECENTLY moved his family from their fortified West Melbourne property to an even more secure property in Francis St, a city alley. Security grilles cover the steel doors to protect the family from disgruntled victims.

REFUSED to go on a recent shopping trip for Christmas presents with his wife and children because he could not bear to see the money being spent.

BUYS clothes from second-hand shops and discount stores, including Dimmeys and Forges.

APPEARS to be suffering from a worsening twitch in his right hand and neck.

Ms Tschernitz said her brother was not cheating his victims out of their money because he needed it.

She said he loved the thrill of beating people.

"He thinks it's funny. It's a game. All he is trying to do is beat the system. It's a game of strategy to him," Ms Tschernitz said.

She said he would never stop and that if the laws were changed to stop him he would alter his tactics to get around them.

Ms Tschernitz said Ms Newman, described by acquaintances as a simple woman, had stuck with Mr Tweed because she was naive and did not want to return to her impoverished roots.

Ms Newman, originally from Airport West, has three children by a previous relationship.

Ms Tschernitz said that, as a child Tweed would push the boundaries as far as he could, but stop before he was technically in trouble.

She has told Mr Tweed repeatedly that she does not agree with his business practices.

"I told him, 'Just stop, surely you have got enough money'.

"But he doesn't care. He just doesn't care. My mum and dad are just so beside themselves. They came over here for a good life.

"It has split our family apart. I haven't seen my nieces and nephews."

Ms Tschernitz said Mr Tweed, 40, could stop now and live a life of luxury.

"But he won't ever stop. No one can stop him."

Mr Tweed takes particular aim at investors in demutualised companies, because they were given their shares for nothing and were less likely to know what their shares were worth.

He ignores pleas from his elderly victims hoping to get out of their contracts with him.

He refuses to talk to them, instead making them listen to his voice on a recorded message.

The message, which is regularly changed, currently says: "Remember, your word is your bond and you are expected to honour your agreements. In God we trust. Call again sometime. Bye."

This week Mr Tweed revealed in court how he repeatedly changed his tactics to outwit legislative changes designed to stop him.

Each time he met an obstacle he reworded his offer documents.

When Mr Tweed was required to disclose the true worth of a share in his offer documents, he wrote his low offer price at the top and the true share price in small print at the bottom.

When questioned by lawyers whether he kept the prices separate so that victims would not realise the current market value, Mr Tweed said: "I would certainly hope they didn't notice it."

He changed his tactics later to offer to buy shares at above-market value.

But in the fine print at the bottom, the offer documents stated that the shares would be paid in 15 annual instalments.

So if a share was worth $1.50, the person would receive 10c a year for 15 years while Mr Tweed took possession of the shares immediately.

When a Federal Court judge last year ruled that was misleading and deceptive conduct, Mr Tweed said he changed the fine print to bold print.

He then offered a global sum for a parcel of shares, without mentioning an individual price.

Mr Tweed said he structured the offer to make it legal, but also to try to get as many acceptances as possible.

Mr Tweed's targets include investors in AMP, IAG, AXA Asia-Pacific, and OneSteel.

Herald Sun

>>>>>>>>>>>>>>>

He's really a nice bloke, just misunderstood. LOL