InvestSMART

Come and clear up this cornucopia of calumnies

Bad luck, Jack W. Flader. What was that judge thinking on Friday when he all but called you an out-and-out thief?

Bad luck, Jack W. Flader. What was that judge thinking on Friday when he all but called you an out-and-out thief?

He said you were the mastermind of a superannuation fraud that has cost investors in the Albury fund manager Trio Capital up to $180 million.

I know, I know. It's so outrageous you haven't been given a chance to defend yourself.

I just can't believe how those judges and lawyers and regulators are badmouthing you around the place.

How did Justice Peter Garling put it in the NSW Supreme Court on Friday? He said: "I accept that ... Mr Flader was the architect and ultimate controller of the scheme."

Then he put your former employee Shawn Richard in the slammer for 2? years.

So I guess poor old Shawny Cash had a bit of bad luck after he put all that money into offshore hedge funds you controlled.

But it's nothing compared to the indignities being committed against your good name.

Last I heard from you I thought you were in Hong Kong. I'm surprised you haven't jumped on a plane and set these scurrilous rumours to rest.

They schedule flights to Australia reasonably frequently these days, but I guess there must be some reason you haven't come down.

It was bad enough when BusinessDay was having a go at you. What were you called? Something along the lines of "super thief"?

It's pretty intolerable to see your name coming up associated with Australia's largest superannuation fraud. So bad luck, sir, bad luck.

And it's not as if it's the first bit of bad luck you've had either, is it Jack?

I'm figuring it must be just a run of bad luck that your name crops up in association with a whole host of separate scams.

Bad luck, I say, that you were general counsel of Zetland Financial Group when it was owner of the British stockbroker Pacific Continental Securities.

I'm sure you were as shocked as anyone that Pacific Continental turned out to be a shopfront for rogues selling worthless penny stocks before it collapsed in 2007.

I'm sure you were acting appropriately as the US-trained lawyer that you undoubtedly are. I bet you were right in there, behind the scenes, working hard to change its ways.

What was it that the Financial Services Authority called Pacific Continental Securities? Something about inappropriate selling between 2005 and 2007, and the chief executive acting without integrity.

And bad luck, too, that your name appears as a defendant in a mega court litigation about the Derivium scandal in the United States.

You were named as a "RICO defendant" weren't you? You being a lawyer and all, you would well know that stands for the Racketeer Influenced Corrupt Organisation Act.

They never took you to trial. So I suppose that's a bit of good luck.

But in any case, it would have been nice for you to stand before 12 of your peers and clear your name of the slur.

In any case the courts found last November that investors were ripped off to the tune of $US1 billion ($965 million), and promoters were paid $US100 million ($96.5 million).

Again, I say: bad luck, sir, to have your name associated with such an outrage.

And while I'm at it, I'm sorry about this newspaper's references to your 2005 trip to Pattaya for a "global meeting" of stockbrokers you organised.

I'm pretty sure it was just bad luck that seven of the 25 who attended have had substantial run-ins with regulators.

Many seemed proficient in the world of penny stock fraud, but I'm sure the presence of those rats in the ranks at Pattaya would have come as a shock to you.

Mind you, it didn't sound like the conference was all hard work. What were the wines you recommended your guests bring with them to your house in Pattaya? Weren't they Chateau Talbot, Lynch Bages and Carruades De Lafite? When I last looked a bottle of the current vintage in these labels they cost $65, $170 and $413.

Such a merry life you had. What was it you said about your time at the Bulgari resort in Bali and its $1500-a-night rooms? Wasn't it "10 hours of massages, excellent Italian and Indonesian food, an ocean of fine wines, great workouts and painful yoga".

It's all now uprooted and unsettled by these importunate aspersions.

Now you say you have sold your Global Consultants and Services Ltd business. At any rate your old website doesn't work any more.

I guess it's another bit of bad luck how both those men you sold your business to were found guilty in the Derivium scandal.

I also think it's a bit of bad luck, by the way, that a couple of your old business colleagues, James Campbell Sutherland and Jeffrey Revell-Reade, seem to still have financial services interests in Australia.

But most of all I think it's bad luck you ever turned your attention to Australia.

I'm very sorry about that, Jack. The investors in Trio Capital who have been forced on to pensions and have lost their homes are sorry about that, too. I think ASIC may have a few regrets as well.

I tell you what. Why don't we meet up at Sydney Airport, just you, me and a few officers from the corporate regulator, and we can start addressing some of the bad luck that seems to follow you around?

I mean, really, it's just not fair, is it?


Join the Conversation...

There are comments posted so far.

If you'd like to join this conversation, please login or sign up here

Related Articles