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.

DUNKIN CEO TRAVIS ATTEMPTS TO SELL MORE SHOPS IN MARKET WHERE FEW MAKE MONEY

Baskin Robbins franchisees, who've been thru 2+ years of hell from Allied Brands Ltd. (ABQ), were feted this week by Dunkin CEO Nigel Travis and interviewed by Smartcompany.com, the same internet news site that first confirmed the Korean and Indian visa scam being run by executives at ABQ.

Travis claims that the 80+ Baskin Robbins franchisees are relieved that he's come to the rescue. This is in conflict with information provided to this blog, where franchisees have said that the company has failed to address the high-cost legacy of Allied Brands, have failed to assist in the missing $1,000,000 of advertising funds that can't be found, have refused to cooperate with ASIC and ASX investigations into ABQ, and other serious issues.

And we have reports that shops are still closing, with two gone in the last two weeks.

Unless positive steps are taken to address the issues that drove this company into a ditch it's unlikely that new franchisee suckers are going to be found to invest in this brand.

ABQ administrator Vincents has yet to have the first creditors meeting, getting almost six months in extensions from the court in Brisbane with no discernible reason and no end in sight. When will the dudded and defrauded Baskin Robbins, Cookie Man, Awesome Water, Kenny's, and other franchisees see some of these crims charged??

FAILED MANAGEMENT FROM ALLIED BRANDS SHANE RADBONE AND JACK SAKALIS NOW REAPING HAVOC AT NEW UNSUSPECTING FRANCHISE COMPANIES!

Two of the key executives implicated in the Allied Brands Ltd. (ABQ) collapse are Shane Radbone and Jack Sakalis. Sakalis was appointed Baskin Robbins Brand Manager shortly after Radbone became CEO in July 2009.

It was under these two executives that the collapse of Allied Brands was instigated and managed. The "Baskin Robbins Visa Scam" occurred under the watch of these two executives. Both are being investigated by the Department of Migration for this fraud, that saw Korean and Indian families given phony 457 visas with the company claiming they were "marketing professionals". Instead they had just been sold known dud locations, stripped of several hundred thousand dollars, and ultimately deported by the Australian government.

It was also under these two executives administration that over $1,000,000 in advertising trust fund money has gone missing - a serious allegation that has the ACCC and ASIC investigations underway, with the Queensland Police Service fraud squad also engaged. Even diversion of advertising fund money to other corporate purposes can get these culprits years in jail.

And Shane Radbone as CEO gave himself and his wife a "gift" of a sweetheart $750K loan which has never been paid back to the company or receivers. All this while the debts continue to stack up.

So now we come to find Radbone has been made "Chief Operating Officer" of the Australian arm of 7/11. Boy, are these franchisees in for a treat! And what did Radbone take as his first management task? A SPEAKING ENGAGEMENT to a group of government executives in South Australia that apparently have been duped by his lame story of why he was sacked at Allied Brands!

The seminar programme says about Radbone: "Recently he was terminated as a CEO of an ASX listed company, after a failed management buy out, (A COMPLETE LIE) but was recently appointed COO of 7-Eleven, the 3rd largest private company in Australia, after just completing the acquisition of Mobil. It all comes down to your attitude, and your willingness to pick yourself up after setbacks and respond. It is also about having balance in your life. Success is an attitude."

Let's see, Radbone sacked from now three companies where he FAILED at all of them leaving destruction and economic ruin in his wake. It would seem Radbone's "success" is only in fast-talking 7-Eleven and hope they wouldn't check his CV.

Sakalis on the other hand has taken a job with Business Development Company, a Melbourne-based franchisor consultancy. What are these franchisors going to learn from Sakalis? How to loot the franchise advertising funds? How to lie to potential franchise-investors about their soon to be lost life savings? Getting away with unpaid superannuation contributions?

The BDC website goes on to say "BDC represent some of Australians best brands including: Bakers Delight, Nanotek by Ecowash, Hudsons Coffee, Mortgage Choice, Cookie Man, Baskin Robbins, Star Shots Glamour Photography, Telstra T-Life, Pure Protect Mobile Hygiene, Sportsco, Healthy Habits and MBE Business Service Centres." It's known fact that BDC DOES NOT represent Cookie Man, nor Baskin Robbins, nor Telstra. Is everything about BDC made up horseshit?

These aren't the only people who are being criminally investigated in the Allied Brands Ltd. debacle. We're expecting arrests soon. . .

PPK GROUP LTD INVESTIGATION CONTINUES - DID DIRTY DIRECTORS USE COMPANY ASSETS TO PUSH PRIVATE INVESTMENTS?

The ACCC has confirmed that investigations into dirty dealings at PPK Group Ltd. (PPK) continue to unfold. The ACCC is now searching for documents concerning director's private investments in Allied Brands Ltd. (ABQ) that may or may not have been secured at 'full value', at the same time these directors were using PPK shareholder assets to invest in Allied Brands and prop up the failed company.

PPK director Jury Wowk was said to be outraged at the scheme after being enticed into an ABQ directorship what he was told was a "company restructuring". One board meeting and he quickly identified that criminal actions were likely underway and his very quick resignation from the ABQ board is one of the actions that began to focus ASX and ACCC attentions on this organised crime racket.

In a half-yearly report PPK has acknowledged a massive loss due to this and other bad investments in Frigrite (now in administration) and Intelligent Solar Ltd. (ISL). ISL, a company near-death, just had a massive investment of capital from an entity known as Contemplator Pty. Ltd. (ARG Pension Fund A/C). Suspiciously, this entity was also the second largest investor in Allied Brands at the time of their collapse! Who is controlling the pension fund, and why this Melbourne company is apparently around so much fraud and company carnage is just one of the items now being explored by the ACCC.

Finally, ex-company secretary James Fay and accountantcy firm Hacketts are also targeted for their actions in misleading investors and the ASX.

COLLAPSED ABQ NOW BEING LOOTED BY THE PROS

Allied Brands Ltd. administrator Vincents has filed notice for an ADDITIONAL six weeks of "convening period" after already getting one extension over the holidays.

It is unknown what this additional six weeks can accomplish - Vincents says "it is in the best interests of creditors and members of the company".

With charges by Vincents being made against the company of at least $80k/week, the only one who's interest is being looked after is the administrator, apparently.

Once the amateurs running a company like ABQ have stripped it of investor assets, then the pros come and and the real looting begins.

There is however still no sign of the missing Ad Trust Fund monies, nor the $750K "loaned" by failed and disgraced ex-CEO Shane Radbone TO Shane Radbone and his wife, Victoria Elise.

$1.5 MILLION MISSING - WHO STOLE THE BASKIN ROBBINS AD FUND MONEY?

It's been disclosed that the ACCC is investigating the apparent theft of over $1,500,000. in Baskin Robbins and other Allied Brands franchisee Ad Fund money by Allied Brands management over the last year.

As long noted by franchisees of many of the Allied Brands companies, promised advertising was not being done on behalf of any of the brands. All of the brands (Baskin Robbins, Cookie Man, Awesome Water, Kenny's Cards, etc) contributed large amounts to Ad Funds that are supposed to be held "In Trust" on behalf of the franchisees.

Administrators for Allied Brands, Vincents, have been asked by franchisees for the required audits of the Ad Fund contributions to be produced. To date they have not done so. As previously reported Peter Biazos, administrator at Vincents, was previously employed with ABQ CEO Lachlan McIntosh at Korda Mentha, a huge conflict of interest that the court has not yet ruled on.

Sources with the ACCC and ASIC both indicate that the criminal acts at ABQ are likely to result in up to nine indictments of Allied Brands management including current and former board members as well as general managers for several of the key brands. And this doesn't include the criminal charges that are going to result from the Korean Visa sale scam.