More bad news for Trio investors
However, investigations into Trio continue, and the chairman of the Australian Securities and Investments Commission, Greg Medcraft, gave politicians a confidential briefing about Trio following a parliamentary joint committee on corporations and financial services hearing in Sydney.
Mr Medcraft did criticise Trio Capital investor advocate Paul Matters, who claims ASIC leaked information to Trio directors.
‘‘Mr Matters said on ABC radio and on YouTube that he had been leaked a Trio Capital bank statement showing $74 million had been lost immediately after ASIC became involved in the investigation. This is completely incorrect. The funds were distributed by the administrator to a number of subsidiary Trio super funds,’’ Mr Medcraft said.
‘‘ASIC officers are not in the business of leaking documents and this is a serious smear on the men and women who work at our organisation. Mr Matters should substantiate this allegation.’’
Mr Medcraft said ASIC was still investigating Trio with the help of the Australian Crime Commission and Australian Federal Police. However, last year it had insufficient evidence to charge the man considered the mastermind behind Trio, Jack Flader.
Investors lost more than $100 million when Trio Capital moved money overseas using a network of offshore funds. ASIC does not believe that another director, Paul Gresham (previously known as Tony Maher), who was recently questioned in a liquidator’s examination, has any assets in Australia or overseas that could be returned to shareholders.
Mr Medcraft also confirmed the commission has met environmental activist Jonathan Moylan, who in January pulled a hoax on Whitehaven Coal. The company’s share price tumbled after Mr Moylan issued a fake press release titled: ‘‘ANZ divests from Maules Creek Project’’, which suggested the bank had pulled funding and the company’s mining project would not proceed.
‘‘We have formally engaged with Mr Jonathan Moylan from the Front Line Action on Coal and our investigation is continuing,’’ Mr Medcraft told the committee.
On Monday, ASIC expects to release two reports on high frequency trading and dark liquidity pools. The reports will reveal whether ASIC wants to introduce new rules or reform existing laws.
Frequently Asked Questions about this Article…
Investigations into Trio Capital are ongoing. The Australian Securities and Investments Commission (ASIC), with help from the Australian Crime Commission and the Australian Federal Police, is continuing to examine the case. However, ASIC told politicians it still did not have enough evidence last year to charge the man considered behind the scheme, and many investors who lost money are still waiting for recovery outcomes.
According to ASIC, last year there was insufficient evidence to charge Jack Flader, the person widely regarded as the mastermind behind Trio Capital. ASIC says the investigation is continuing with assistance from other law‑enforcement agencies, but no criminal charge had been laid as of the briefing referenced in the article.
The article states investors lost more than $100 million when Trio Capital moved money overseas using a network of offshore funds. ASIC also disputed a separate claim that $74 million was lost immediately after ASIC became involved, saying those funds had been distributed by the administrator to a number of subsidiary Trio super funds.
ASIC chairman Greg Medcraft strongly rejected the allegation made by investor advocate Paul Matters that ASIC leaked a Trio bank statement. Medcraft said the claim was incorrect, that the monies in question were distributed by the administrator, and described the leaking allegation as a serious smear on ASIC officers who are 'not in the business of leaking documents.'
ASIC told the committee it does not believe another director, Paul Gresham (previously known as Tony Maher), has any assets in Australia or overseas that could be returned to shareholders. The article notes Gresham was recently questioned during a liquidator's examination.
Jonathan Moylan issued a fake press release titled 'ANZ divests from Maules Creek Project' which suggested the bank had pulled funding; Whitehaven Coal's share price tumbled after the hoax. ASIC confirmed it has formally engaged with Moylan and that its investigation into the matter is continuing.
ASIC expected to release two reports on high frequency trading and dark liquidity pools. These reports will indicate whether ASIC wants to introduce new rules or reform existing laws—issues that can affect market transparency, order execution and, ultimately, ordinary investors trading in Australian markets.
ASIC chairman Greg Medcraft provided a confidential briefing to politicians following a parliamentary joint committee hearing on corporations and financial services. The article also notes ongoing engagement between ASIC, law‑enforcement agencies, and liquidators as part of efforts to investigate the Trio Capital collapse.
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