VINCENTS IGNORES HIDDEN ABQ ASSETS - LOOTED FUNDS PUMPED INTO ESSENTIAL GROWTH PTY LTD

In late 2009 as Allied Brands was obviously failing internally, three Baskin Robbins managers decided to exploit the situation by "skimming the cream" of new shop sales. In cahoots with senior management including million dollar deadbeat Shane Radbone (and wife Victoria) on the scam, managers Tony Cavanagh, Brett Amis, and Trent Graham formed a company "Essential Growth Pty Ltd" to sell Baskin Robbins shops. The ACN of this venture is shown by ASIC as 137 983 521.

The purpose of this scam was two-fold. It allowed Allied Brands to "distance" itself from the growing number of complaints, lawsuits, and the previously reported "Korean Visa Scam" in new shop sales. ABQ was at this point starved for cash, and like many sick franchisors depends on "new suckers" to buy shops in unviable locations. By letting these managers to sell these dud locations under a non-ABQ entity, while pretending to be acting for Allied Brands, Radbone and Peter Graham hoped to shield ABQ from the complaints of these franchisees when the shops failed. Putting his son Trent in as a "partner" was done for obvious reasons.

Secondly the scheme removed all the unsold shops from the ABQ balance sheet, where they had clearly become a huge question from the shareholders. One of them, at the Oasis Centre across from Jupiter's Casino at the Gold Coast, was pocketed by Brett Amis.

Several of the shops built under this scheme have already been closed with franchisees dudded upwards of $300k each. Several more of these shops are in locations destined to fail, with franchisees struggling to hang on. These shops were constructed with cheap fitouts and fittings, and franchisees have been told by new management that much of it will need to be replaced to "comply with standards".

And reports indicate that at least one of the "Missing Baskin Robbins" cars, which Vincents hasn't been able to find, is sitting in the garage of one of these "Essential Growth" directors. The only "Essential Growth" in this scam was the cash filling up these Baskin Robbins management employees.

Why has Vincents failed to pursue this missing assets? Has chairman Lachlan McIntosh (already known to have worked with one of the appointed administrators) been involved? Or is this a continuation of the looting of this company that began under the tutelage of the first management, the Graham family?

Despite repeated notices to ABQ administrator Vincents, no attempt has yet been made to recover the ABQ assets transferred to Essential Growth in this scheme. Estimates indicate upwards of $2 million has gone missing into these dodgy dealings alone.

ALLIED BRANDS ADMINISTRATOR THROWS IN THE TOWEL FOR QUICK CASH, REFUSES TO CHASE MILLIONS MISSING FROM ACCOUNTS DUE TO "LACK OF FUNDING"

Allied Brands Ltd (ABQ) administrator Vincents has issued their long-stalled report on the debacle that caused the collapse of this company at the hands of morons, thieves, and charlatans.

While some of the report has been reviewed in today's Sydney Morning Herald, it is so packed with stupidity and absurdity that the depth of the corruption at this company is truly breathtaking.

MISSING TRUST FUND MONIES

Despite repeated attempts by Baskin Robbins franchisees to get the required ACCC accounting for the last two years TRUST FUND for advertising, Vincents has ignored their fiduciary duty in producing this report (which was due to the ACCC prior to the collapse of the company).

In this fund, over $1 million is estimated missing. Stolen by the trustees. Looted by the company. WHERE IS THIS MISSING MILLION?

WHY ALLIED BRANDS COLLAPSED

An unnamed director has claimed (5.5) that the collapse of Allied Brands was caused by the cancellation of the Baskin Robbins Master Franchise agreement. What bullshit! ABQ had a long history of failing to live up to the requirements of this agreement (reference this blog) and for at least six months prior had been unable to even provide stocks of ice cream to franchisees, many of whom sourced unbranded product in order to stay open.

This "unnamed director" should be tested for drug use immediately.

And the non-payment of company owned shop employees as well as their superannuation was a material breach of the agreement.

MISSING ASSETS

As shown in the report (5.11) and reported previously on this blog, there are vehicles owned by Allied Brands still being driven around town by ex-employees including the Grahams.

LOANS TO DIRECTORS

In a new twist, loans made by the company to directors (including Peter Graham and Shane Radbone) are disputed by them despite records including company reports to the market acknowledging these loans. Apparently you can just tell the administrator "not my problem", and the administrator goes away! Additionally, Graham, who lives in multi-million dollar accommodations, drives luxury sports cars, and spends his time drinking fine wines while dining at exclusive Gold Coast digs has claimed, in a statutory declaration, "he does not have the financial capacity to satisfy this $167,841.95 claim against him"!

What a fucking criminal liar this guy is! Why hasn't Vincents called the cops?

INVESTIGATIONS

Despite two court orders allowing Vincents "more time" to conduct investigations, their report is filled with "I am not in a position to comment", and the even more disgusting "I am without sufficient funds to attend to further investigations".

The moral? When you bankrupt your company make sure you leave nothing, so that the liquidators can't investigate your criminal activities.

CREDITORS AND OTHERS ATTENDING THE MEETING CALLED FOR 19 APRIL 2011 SHOULD VOTE NO ON THE PROPOSED DEED OF COMPANY ARRANGEMENT. ALL ADDITIONAL MONIES OWED TO THE COMPANY TO BE DIRECTED INTO PROSECUTION OF THESE CRIMINAL THUGS.