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Daily news, documents and intelligence about Offshore Financial Centers and those who conduct business in them that you will not find anywhere else.
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Jack Flader - GCSL - $120 Million Missing
Internal Administrator
Posted: Saturday, August 13, 2011
Joined: 10/12/2010
Posts: 5780


Posted: 7/20/2010 2:25:55 AM

By: Offshore Atty

According to a bevy of newspaper accounts, Jack Flader is accused of being the ultimate recipient of massive sums swiped from retirement accounts in
Australia:

http://www.smh.com.au/business/another-black-mark-against-asic-20100718-10fzv.html

What is particularly shocking is that another $400 million has been frozen by the courts, so this group operated on a big scale.

I am a bit surprised that, after months of press coverage on three continents, Offshore Alert has not picked up on this. OA tends to feature Caribbean-centric news stories, but there's a whole lot going on in Asia and down under.


Anonymous
Posted: Saturday, August 13, 2011

Posted: 7/21/2010 7:40:52 AM

By: David Marchant

Your posting is infantile in many ways.

Re. "... it has been the subject of extensive media coverage for months ..."

OffshoreAlert specializes in providng its readers with exclusive information about dubious people and businesses. Since this information is, according to your own words, widely available, it has limited value to OffshoreAlert's subscribers.

Re. "Your most recent two issues feature headlines on people we've never heard of and who probably don't amount to a hill of beans."

You have unwittingly shown the value of OffshoreAlert, i.e. exposing people whom you otherwise would not know were suspect. You are lacking in credibility if you think that the lead story in the most recent edition of OffshoreAlert (about Rani Jarkas and Cedrus Investments) 'doesn't amount to a hill of beans'.

Re. "Show us that our subscriptions pay for more than your conference!"

It is the other way around. The conference brings in more money than newsletter subscriptions.

Contrary to the belief of some, OffshoreAlert does not have infinite resources and, as such, I have to pick and choose what matters to investigate. We can't cover everything. This should go without saying, although it apparently needs to be said.







Anonymous
Posted: Saturday, August 13, 2011

Posted: 7/21/2010 6:59:33 AM

By: Why is Marchant Not All Over This?

David, this is the first "offshore alert" story to make headlines in the
South China Morning Post and the Sydney Morning Herald in a generation, it has been the subject of extensive media coverage for months, and we have seen nothing about it in Offshore Alert. As a frequent reader and subscriber, I think your coverage has dried up a bit over the past year or two... Your most recent two issues feature headlines on people we've never heard of and who probably don't amount to a hill of beans. I don't want to discourage you, but you need to pick up the proverbial pad and pen and get back out there!!! You've been doing God knows what for the past year and you are missing out on some great stories!!! Show us that our subscriptions pay for more than your conference!


Anonymous
Posted: Saturday, August 13, 2011

Posted: 7/20/2010 8:04:52 AM

By: Offshore Hedge Funds

One must wonder how many offshore hedge funds (maybe just hedge funds period) are really just pyramid schemes, sending out statements to investors showing glorious returns while the money is seeping out the backdoor to be lost in hidden bank accounts.

Two thoughts:

First, one should never, ever invest in a hedge fund (by whatever name) unless it is audited by a huge accounting firm with deep pockets.

Second, the normal court system obviously can't cope with these criminals so "private justice" should be liberally applied to the perpetrators, aiders and abettors of these scams.


Anonymous
Posted: Saturday, August 13, 2011

Posted: 7/20/2010 2:37:59 AM

By: Offshore Atty

Further news coverage highlights the large commissions purportedly paid by Jack Flader to keep investor cash rolling in...

http://www.smh.com.au/business/marketing-allowance-paid-to-planner-20100715-10cnh.html

This has the markings of a Scott Rothstein or Bernie Madoff scam. Note how the Australian regulators became curious when the funds posted gains during the market downturn in 2007 and 2008. Where there's smoke...


Anonymous
Posted: Saturday, August 13, 2011

Posted: 7/20/2010 2:30:42 AM

By: Offshore Atty

The quote at the end of this article is telling...

http://www.smh.com.au/business/shawny-cash-plays-it-cool-amid-hunt-for-missing-123m-20100715-10cnm.html


Anonymous
Posted: Saturday, August 13, 2011

Posted: 7/22/2010 4:26:22 PM

By: David Marchant

Look, I have no idea whether you are a subscriber or not since I don't know who you are. But, come on, I can't be expected to cover everything.

Unless we have something new and significant to add, we seldom cover events that are being widely covered elsewhere. We specialize in providing exclusive information, not rehashing what is widely known.

By the way, the frauds we expose are hardly small, e.g. Stirling Cooke Brown Holdings (estimated $1 billion) and Imperial Consoldiated ($400 million).


Anonymous
Posted: Saturday, August 13, 2011

Posted: 7/22/2010 4:08:36 PM

By: Infantile Subscriber

David, notwithstanding the name-calling, missing out on big stories to chase small fry could be excused as strategy, but I've read you for years and know when you are hard at work... And when I think you could do a little more research. I don't dispute the positive value of the stories you report, but you have gone to excruciating detail small league scammers while missing out on a fraud on a far larger scale and which has not been picked up by the US media because of its offshore nature.

I think you could do better, both in the way that you speak to your customer-colleagues and in the stories you cover.


Anonymous
Posted: Saturday, August 13, 2011

Posted: 7/23/2010 4:42:11 AM

By: David Marchant

If you are indeed a subscriber, I thank you for your business and support and I apologize for being a tad snappy. Perhaps I was too sensitive to criticism.

I can tell you that one major difficulty in exposing serious financial crime is the cost of defending libel actions. One case in the Cayman Islands alone cost my firm about $350,000 in our own legal fees and costs - and we only had one hearing before the case was dismissed!

The legal system in offshore financial centers, which is based on the UK's, is poor in that it is slow, inefficient, expensive and unjust. The quality of judges is poor, in my experience.

There are only so many libel cases I can afford to defend at any one time. Therefore, I have to manage the balance of exposes (which carry a high risk of being sued) and the number of non-exposes (e.g. articles about court actions, which carry a low risk of being sued).

After the end of the Cayman libel action a few years ago, I made a conscious effort to avoid being sued until the company's coffers were replenished - for the simple reason that I could not afford to be sued again at that time. Fortunately, we are now in a stronger financial position than we have ever been, hence our return once more to bona-fide exposes (e.g. Rani Jarkas in the most recent edition).

FYI, our web-site is currently being re-developed to allow us to move from a monthly newsletter format to a daily news and documents service. The site will be much easier to use for clients such as yourself and there will be many more features that I am confident you will enjoy and find significant benefit from.

The new site should be launched by no later than the first quarter of next year and could be launched as soon as the end of this year.

It will provide the platform for growth. With growth will come additional revenues and with additional revenues will come more exposes.

My aim is to create a first-class facility for all-things offshore and also all-things that are financial crime-related.


Anonymous
Posted: Saturday, August 13, 2011

Posted: 7/23/2010 1:22:09 AM

By: Infantile Subscriber

Yes, I am a subscriber, and you justly deserve plenty of credit in the past for doggedly chasing down a slew of offshore crooks. I just wish there were more of you to chase down more stories in more jurisdictions. With the Caribbean under the microscope, much of the dirty work has moved to Asia... And yet the GCSL group seems to have used some operators in the BVIs to perpetrate their deeds.


Anonymous
Posted: Saturday, August 13, 2011

Posted: 7/23/2010 2:04:55 PM

By: Jack Flader Watch

Yes, he was with Zetland... Not too what happened to cause him to leave. His GCSL offices occupy primo space in Hong Kong, and his newsletters are full of stories of conspicuous consumption.

I wonder if the California State Bar has been notified about his recent troubles? For some reason I thought he was a licensed member.


Anonymous
Posted: Saturday, August 13, 2011

Posted: 7/23/2010 2:01:46 PM

By: Matured Subscriber

Kudos, David, and thanks for the update! Keep up the good fight!


Anonymous
Posted: Saturday, August 13, 2011

Posted: 7/23/2010 8:08:29 AM

By: Flader of Zetland Finance

Not Jack Flader of Zetland Finance is it??

Didn't his name come up in Derivium Capital mess?

And wasn't he involved in a number of thinly traded stocks?

Wasn't by any chance President of Asia Offshore Association - checking members (current,past,???) is an interesting activity (OK, so maybe only an interesting activity for hunter types)

Possibly the same Flader mentioned in posts years back by investors (mainly Australia I think?) who got hit by overseas boiler rooms.

And going back in time, would it be same Flader associated with Gemini Financial Group and/or First Capital International??



 

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