Trio fraud needs independent inquiry

The Victims of Financial Fraud (VOFF) group has called for an independent inquiry into the Trio Capital scheme fraud case similar to the investigation carried out by the Australian Federal Police into the recent Australian Taxation Office (ATO) fraud case.

The group said the Trio operators had exploited the weaknesses in the Australian financial system, and according to the Australian Prudential Regulation Authority (ASIC), without breaking any laws.

“Despite ASIC’s knowledge of the fraud, it claimed that the money lost in Trio was due to the conduct of some financial planners in Australia who appear to have been influenced by high commissions in recommending their clients into the Trio Capital products,” the group said.

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VOFF has called on the Australian government to “recognise the unique position of the Trio victims”, arguing they suffered monetary losses due to the systemic failure of the Australian financial system.

“Australians deserve an independent inquiry into the Trio fraud with the same clarity as the Australian Financial Review’s three-part features ‘Inside Plutus’ published on 4-6 July 2017 by Neil Chenoweth,” the group said in a statement.

“The features show a proper professional investigation carried out by the Australian Federal Police, unlike what ASIC [Australian Securities and Investments Commission] did for Trio.

VOFF said the Trio Capital scheme relied on deception to carry out the fraud. The Trio directors provided ASIC and the Australian Prudential Regulation Authority (APRA) with all required compliances, which engendered trust from consumers knowing Trio funds were regulated, licensed and governed by both regulators. 

VOFF argued the entire financial system failed, pointing to systemic failure as both the regulators, the National Australia Bank (NAB) and ANZ, the auditors, AUSTRAC and the research houses all failed to identify that the Trio structure was established to defraud investors of their superannuation.

VOFF noted ASIC could not release information about Trio due to national security reasons while the Parliamentary Joint Committee assigned to investigate the fraud did not have access to important information, without which the public did not have an opportunity to heed lessons from the superannuation fraud.



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An excellent article but unfortunately it does not address the total issue with Trio Capital. What is being referred to is the Astarra component of the fraud and does not include the Ualan and Millhouse investments arms which were also a significant part of the Trio Capital fraud.
To support an investigation into APRA and ASIC please look at Ualan where the Acting Trustee on advice from their legal team conform fraud has been committed and yet APRA will not support this claim. They have stated in meetings that to do so would "open up the floodgates to further claims".
ASIC have reviewed this decision but did so without loking at the 200 page draft submission form the Acting Trustee nor accepting or reviewing documented information only discovered recently that clearly shows fraud.
All of these frauds happened here in Australia not overseas so why are our regulators, bureaucrats and politicians so reluctant to do anything about it?
The cover up and incompetence needs to be exposed.
Furthermore if we are to stop the $6 billion of financial fraud in Australia now we need to address and change our financial accounting and audit system.
Please contact me direct if you would like the whole fully documented and supported information.

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