Preliminary investigations being done by ASIC into the financial affairs of Allied Brands and related collapsed entities have moved two cases to the Criminal Investigations Team in Brisbane.Sources indicate that these first two investigations are targeting Beath Investment Services Pty. Ltd., a front company for Raymond Beath - a director at PPK Group Ltd. as well as Holden & Bloster Avenir Chartered Accountancy, and Kathlac Pty. Ltd., a superannuation trust in favour of ABQ Chairman and Korda Mentha director Lachlan McIntosh.
The case against Raymond Beath is said to involve his personal investment of almost $6 Million into ABQ with a "guarantee against loss", while at the same time investing shareholder funds from PPK Group without such a guarantee, and without disclosing his his "sweetheart" arrangement. Apparently the PPK Board was told "Beath Investment Services believes this is a great deal for PPK". PPK has written off its entire investment in ABQ.
Lachlan McIntosh is going to be an especially interesting case. As a licenced liquidator himself, he's expected by ASIC to have a higher fiduciary duty than an inexperienced director. Charges of Trading while Insolvent are under scrutiny, as well as diversion of company assets. What mom & pop would call "common theft". McIntosh stands to lose his professional credentials when convicted.
More work is still underway by ASIC, and more criminal investigations are said to be "likely" given the level of widespread fraud at the company. We're expecting charges to be laid against the ringleaders, Tony Cavanagh and the fat bastard himself, Peter Graham.
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