Denise Brailey, Australia’s very own Erin Brockovitch, has put together a very interesting piece explaining some of things Ken Court, Richard’s brother, has been up to.
In order to avoid yet another stream of threatening letters, we will keep this yarn very simple, whilst we consider the LINKS. In 1992, Krafty Ken was Chairman of Perpetual Trustees and he still sits on the board today. Two notable employee/managers of PTs were arranging “loans” for borrowers, who have since been arrested and charged and named in parliament as the notorious “dirty dozen.” Two PT account managers moved to Clifton Partners, the company who affected a slight name change to Knightsbridge with the full knowledge and blessing of ASIC. With $160 million falling rapidly into default, ASIC kindly placed them on the “run-out” program along with 120 other solicitor mortgage “run-outs.” Meanwhile during 1992, KKen at the helm of PTs was having a few defaults of his own in both the Northern Territory and Queensland. We are told $35 million was settled out of court on three of them. Some of the mortgagees were paid out, but with whose money? Shareholders and cute accounting perhaps? The full story of diabolical overvaluations and members of the public facing years of anguish and lost capital can be viewed at Hansard WA 6th and 7th Dec 1995 re the Katherine Dairy (acquisition of Rural Property Trust – Perpetual Trustees). The lead players in all of this are Ken and his mates. You would think as a law abiding citizen KKen would have learned a lesson with regard to the practice of moving millions of other peoples money, usually it appears, without their knowledge of what is truly going on.
In October 1999, KKen again starred in another event. He is Non-exec director of MFA Finance, telling ABC audiences “no-one has ever lost money in MFA Finance.” It was a half truth because the money was lost at the very beginning of these notorious deals in 1998, but KKen considers that if one moves millions around for a few days – no-one gets hurt. Graeme Grubb is currently serving 10 years for adopting a similar thought process. However, we must stop there because charges have been laid in the MFA deals on every-one but KKen, and several retirees carefully placed on second, third, and fourth mortgages are short a few million. You would be forgiven for believing this time KKen has learned another valuable lesson. Not quite.
Two weeks ago I attended a creditors/shareholders/mortgagee meeting of one of Knightsbridge’s more colourful “golf club” deals – Meadowsprings. The property in question has had four valuations from the top end of town ranging from $14 million to $8 million for the same structure. In any event $4.5 million of shareholders are less than amused, as well as some 60 retirees who poured in another few million via Clifton’s, as well as a few “GIs” (geographically impossible) who poured in yet another $3 million in early 2000 all registered with and during ASIC’s investigation! ASIC was busy “monitoring.” It loves “monitoring.”
For those who doubt the crossing of state borders issue – the GIs this time were from Melbourne (HG&R Noms) the Kelly clan. They were given a neat 3rd mortgage, but on the proviso that the first mortgagees were coerced into relinquishing 1st ranking and that all ranks join together. The fourth mortgagee – well wouldn’t you guess – KKen. He had signed a contract with Transmetro in complex lease and sub-lease arrangements the subject of current highly contentious legal wrangling. Meanwhile local agents appraised the property at well below the above figures. And here is the rub. Ken Court and Max Fowles (ex pres of the Perth Stock Exchange) were listed as directors of NKH Securities, nominated by Knightsbridge as the “single responsible entity” whilst Clifton is on the “run-out” program. The current administrators of Meadowsprings announced that the company is insolvent to the tune of $800,000 as at 30th June 2000. More happy investors, shareholders, creditors and interstate interested parties. I ask the obvious question – how long prior to 30th June had the company been insolvent. On tape – the answer is: “in our opinion, from the beginning.”
Here are the gems: This file was given to parliamentarians and read out by Jim McGinty on the 4th April 2000. We found out about the deal three weeks prior, and it does take a few weeks to put the file together in reasonable format. Complete files were also given to the Fraud Squad and ASIC. The response gave the impression that until “the payments stop” it isn’t fraud! We need to all understand that the “deal” is set at the beginning prior to anyone handing over one dollar, but authorities are all learning a lesson in criminology. In defence of the Police – they tell us they cannot act until they have a complaint; and a complaint from ASIC or MPs or support groups do not count. ASIC have sweeping powers, but little imagination. So when did KKen and Max Fowles sign these contracts as the company (SRE) “watchdog?”
On 26/1/2000, just two months after KKen appeared on the ABC over the MFA Finance mess. The Melbourne money was gleaned in mid March 2000. KKen and Max do a “run-out” of their own on the 30th March 2000, shortly after several people around town knew we had the file. They resigned as directors. Who was the previous SRE prior to KKen? Crikey – Phillips Fox. They are presumed to be searching for a good lawyer to represent their interests. And, who had the authority to sign on behalf of the Foxy ones? Our mate Clifton. And round and round and round we go. No wonder Richard, Tricky Dicky to his mates, fought bitterly against the Royal Commission. If the eastern states journalists think the WA election was won or lost totally because of the greens or the perils of Pauline, think again. The Little “Ls” bank accounts were slightly thinner and they and their next two generations voted accordingly. They cried “we will never ever vote Lib again.” The Judicial Inquiry will explain why.