Flader denies Astarra allegations
One of the men at the centre of the Astarra collapse, Jack Flader, has issued a statement claiming to have been the victim of false statements on the part of former Astarra investment manager Shawn Richard, who last week pleaded guilty to a series of charges involving more than $6.4 million laid by the Australian Securities and Investments Commission.
Flader, who has been frequently referenced as the Hong Kong-based businessman responsible for investing Astarra funds offshore, has issued a series of documents that he claims confirm that allegations made against him are without substance.
As well, Flader clams he had been previously restricted from addressing the allegations by the secrecy provisions of Hong Kong’s Securities and Futures Ordinance.
In the documents emailed to Australian media outlets overnight, Flader denies that he has ever owned or held interests in Wight Global Capital, Trio Capital or any Astarra entities and instead claims they were owned by Richard.
Flader does, however, acknowledge helping Richard set up and run an offshore funds management firm, but claims he did not have ownership or control of the offshore funds, with any involvement being pursuant to clients’ instructions.
Dealing with allegations that Astarra monies were swapped for virtually worthless US shares owned by him, Flader denies ever having owned the shares and claims the shares in question were purchased and valued in accordance with the relevant asset valuation methodology.
Flader also claims he was never Richard’s boss and that Richard was his client and had total control of the business relationship.
In the meantime, Richard awaits sentencing.
AUTHOR
Mike Taylor
Recommended for you
Adviser losses this week are quadruple the same period a year ago, with the industry falling into negative territory for the last 12 months.
Colonial First State has announced the latest manager to join its Edge managed accounts menu, focusing on providing investors with a strategic income.
Rising advice fees has prompted Radar Results to increase its price guide to a minimum of $3,000 per client to reflect the changing shape of the adviser landscape.
Investment consultancy Ascalon Capital has appointed a new partner, who joins from 20 years at Zenith Investment Partners, as well as a new chief executive amid a “bold new chapter” for the firm.
