Former directors of Wright Global Investments (WGI) have been accused of illegally taking over the dealer group and forcing it into liquidation while still owing a network of advisers millions of dollars.
In a complaint to ASIC obtained by InvestorDaily, former WGI chief executive Mark Schroeder alleged that on 21 June 2010 a meeting was held in Sydney with the purpose of engaging in an illegal takeover of the firm and conspiracy to oust him.
The complaint documents, filed to ASIC on 9 December 2010, alleged the meeting was attended by eight people, including former WGI directors Graham Kinder and Peter Wood as well as former Trio Capital chief Shawn Richard and former WGI executive Jillian Lees.
Schroeder also alleged that his dismissal from the dealer group was unlawful as Kinder was not the current officeholder of WGI at the time and therefore not legally able to appoint himself as a WGI director.
“I believe this conduct amounts to falsifying of ASIC records,” the documents alleged.
Schroeder also claimed Richard did not have the authority to act as a director of WGI through his business relationship with Astral Investments.
“I do not believe that Mr Richard, Mr Kinder nor Mr Wood had any entitlement to cease me as director/secretary of WGI,” the documents said.
“Since 22 June 2010, Mr Kinder and Mr Wood took control of the WGI bank accounts and now WGI is in liquidation.”
A copy of a letter from legal firm Patterson Houen & Commins, obtained by InvestorDaily, said a group of people, including Kinder, Richard, Wood and Lees, met to discuss WGI and Schroeder.
In the letter, the parties indicated they had “substantial evidence of wrongdoing by Mr Schroeder in that he appears to be effectively spinning off parts of the WGI business to other business interest”.
The letter, dated 22 June 2010, stated the parties instructed Patterson Houen & Commins to undertake tasks in a bid to “stop the haemorrhaging of the WGI business”.
The tasks were removing Schroeder as director and secretary of WGI, securing the offices of WGI and taking possession of all laptop computers, appointing Kinder as a director and secretary of WGI and Wood as a WGI director, and escorting Schroeder from the premises and taking the “appropriate action in relation to the bank accounts”.
Meanwhile, a number of WGI advisers have pressed WGI liquidator Ngan & Co for information as to the whereabouts of millions of dollars in unpaid commissions.
“I personally have requested a reconciliation of the WGI income and outgoings since the Kinder/Wood takeover and I understand from other advisers that they also have requested this information,” an unnamed ex-WGI adviser said.
“Moreover, several creditors including myself sought to have you provide a reconciliation of the WGI bank accounts from the time Kinder and Wood took over as directors in order to ascertain the income received and where this money had gone. As many advisers were not being paid, the cash at bank should have been growing considerably each week.
“From my discussions with many advisers and their requests to the product suppliers, it was evident that the product suppliers had paid the adviser commissions into the WGI bank account each pay period. Therefore, there should have been ample funds to pay advisers their commissions each fortnight without delay.”
