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David MarchantEditor at OffshoreAlert
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Axiom Legal Financing Fund: Time for investors to take control

November 15, 2012 by David Marchant 1 Comment

In their most recent letter to investors dated November 14, Axiom Legal Financing Fund's directors stated that an Extraordinary General Meeting will be held in December so that they can "present proposals regarding the continued management of the Fund" that they have received from "interested investment managers", with the possibility of holding a second EGM in January, 2013 to discuss the same thing.

In doing this, the Fund's directors continued to dangle the carrot in front of investors that this Fund is somehow salvageable. However, if KPMG has conducted a credible investigation, the directors must know by now that a massive fraud has been committed and that liquidation is inevitable. For example, Tangerine Investment Management hurriedly closed down its Cayman office on or around October 19 when senior officer Dr. Jason Corbett removed all computers, documents and other material (i.e. incriminating evidence) and flew off with it to the U.K. and then Singapore, according to a source.

So why are Axiom's directors wasting time by delaying the inevitable? Could they be buying time so they and other offshore providers can come up with plausible excuses as to why they allowed such an obvious fraud to continue for so long? It sure looks that way to me. Conflicts of interest abound at Axiom and its professional service providers. The number of conflicts, which will be gone into in yet another article on Axiom that will be published shortly, are highly unusual.

The offshore world is full of cozy relationships and the last thing investors should want is for the inevitable liquidation of Axiom Legal Financing Fund to be controlled by the same people who are partly responsible for this mess in the first place.

It is time for investors to seize control of their own destiny, petition the Fund into liquidation and have their own independent liquidators appointed who will aggressively sue all of Axiom's offshore service providers who are believed to be negligent, and go after the assets of insiders such as Timothy Schools, which are located in multiple countries.

I can recommend Ed Davis, an international fraud and asset recovery attorney who is based in Miami, Florida. I have known Ed for many years and I can vouch for his professionalism and integrity. By way of disclosure, Ed's firm, Astigarraga Davis, is an annual sponsor of OffshoreAlert's financial due diligence conferences and, from memory, I think they also subscribe to OffshoreAlert. Other than that, there is no financial relationship between him and me or his firm and mine, either directly or indirectly. I have no financial interest, directly or indirectly, in the outcome of any asset recovery attempt regarding Axiom. I am recommending Ed because I consider it to be in the interests of victims, who, in my experience, often waste a lot of time and money by hiring attorneys who are inexperienced and ill-qualified to chase assets across borders. Ed specializes in cross-border asset recovery, including offshore financial centers in the Caribbean.

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1 COMMENTS

  • PeterE10312
    By PeterE10312on Tuesday, November 20, 2012 11:09:19 AM

    Good advice in a bad situation.

      Replies(1)
      • David Marchant

        The last people who should be in control of this Fund are the independent directors.