FW - DRAFT - Minutes of Meeting of Creditors of OL GT ... · MINUTES OF MEETING OF CREDITORS OF:...

MINUTES OF MEETING OF CREDITORS OF: COURTENAY HOUSE CAPITAL TRADING GROUP PTY LTD(INLIQUIDATION) ACN 152 224 149 COURTENAY HOUSE PTY LTD (IN LIQUIDATION) ACN 130 607 644 HELD AT THE WESLEY CENTRE, 220 PITT STREET, SYDNEY NSW ON 31 JULY 2017 PRESENT:

Said Jahani Joint and Several Liquidator Lisa Gibb Assistant to the Liquidator’s Scott Hedge Liquidators’ legal advisor

INTRODUCTION: Said Jahani opened the meeting at 2:25PM The Chairperson tabled the attendance register and observer’s

register for each company. The attendance registers are attached as Annexure 1. The observers’

registers are attached as Annexure 2. CHAIRPERSON: Said Jahani advised creditors that pursuant to Corporations

Regulation 5.6.17(1), as Official Liquidator he would act as Chairperson of the meeting.

PROXIES: The Chairperson noted that he held one proxy from a creditor in

his favour for Courtenay House Capital Trading Group for $400,000.

NOTICE OF MEETING: The Chairperson tabled the notice of the meetings of the

Companies forwarded to all known creditors on Wednesday, 19 July 2017 and advised that it be taken as read.

QUORUM: In accordance with Corporations Regulation 5.6.16, the

Chairperson advised that there was a quorum present for each of the two companies.

The Chairperson confirmed that the meeting of creditors of the Companies was being held at a time and place convenient to the majority of persons entitled to receive notice of the meeting, in accordance with Regulation 5.6.14 of the Regulations.

VOTING: The Chairperson advised that a resolution put to vote would be decided on the voices, unless a poll was demanded before or on the declaration of the result of the voices in accordance with Regulation 5.6.19(1) of the Regulations.

The Chairperson further advised that due to the number of creditors present at the meeting, he would require creditors to raise their hand whilst voting, to make it easier to determine the vote.

MINUTES OF MEETING OF CREDITORS OF: COURTENAY HOUSE CAPITAL TRADING GROUP PTY LTD(INLIQUIDATION) ACN 152 224 149 COURTENAY HOUSE PTY LTD (IN LIQUIDATION) ACN 130 607 644 HELD AT THE WESLEY CENTRE, 220 PITT STREET, SYDNEY NSW ON 31 JULY 2017

Creditors of Courtenay House Pty Ltd (In Liquidation) were advised to vote by raising the purple voting card provided. Creditors of Courtenay House Capital Trading Group (In Liquidation) were advised to use the red voting cards provided. The Chairperson advised that the meetings of the Companies would be held concurrently as the Companies were sufficiently inter-related and that it would be more efficient to run both meeting concurrently unless there were any objections. There were no objections.

DISCLOSURE OF RELATIONSHIPS: The Chairperson tabled the Declaration of Independence, Relevant

Relationships and Indemnities (“DIRRI”) The Chairperson provided a brief background of the appointment

and a summary of the Liquidators’ dealings with ASIC to date. The Chairperson then spoke about the different roles the

Liquidators and ASIC perform.

The Chairperson advised that the Liquidators and ASIC are in regular correspondence and assisting each other with their investigations to the extent that they are permitted to do so by law. However, noted that certain information obtained by ASIC cannot be shared with the Liquidators as it has been obtained under ASIC’s statutory powers. The Chairperson advised that he would answer questions based on the facts and information gathered through the Liquidators’ investigations. However, the Chairperson noted that there are areas where it would be too early to provide an answer on or areas where investigations are still ongoing and any comment made could prejudice the outcome of the Liquidators’ potential actions. The Chairperson acknowledged the large number of questions received prior to the meeting and noted that time permitting he would try to answer all questions received to the extent he is able to do so.

UPDATE: The Chairperson gave a brief summary on the findings of the

Liquidation including assets secured to date, work completed to date, Directors RATA, Brexit funds and a timeframe update on when a dividend will be paid.

A copy of the Chairperson’s presentation to the meeting is attached as Annexure 3.


The Chairperson noted that: • The Companies were operating a Ponzi scheme. This is based

on interviews with the director, Tony Iervasi and initial forensic accounting investigations.

• Assets totalling c.$52 million have been secured. • Unsecured creditors owed are c.$197 million, being c.$29

million due to Brexit investors and $168 million due to investors in Swing, Elite etc.

• Brexit creditors are estimated at 162 with a further estimated 620 creditors in Swing, Elite etc. However, the Chairperson noted that there may be duplication due to accounts being held in Company names, personal names and SMSF.

Forensic Review/Company Records • No proper accounts were maintained. • Liquidators were required to go back to source documents

starting with bank statements to determine what had happened. • The Liquidators are currently reviewing the bank statements to

recreate the Companies financial records. • In the 3 years to 2017, there are over 10,000 line items in the

bank statements to review and code. The Liquidators will need to seek further information from the banks regarding a number of these transactions.

• The Liquidators will be required to request more information from the banks. This process does take time.

Preliminary use of Funds – 2014 to 2017 • The Chairperson presented a pie chart that showed the use of

$209 million of funds that flowed out of the Companies bank accounts in the preceding 3 years.

• 89% of these funds were used to pay investors in the form of monthly returns and return of investment capital. The Chairperson noted that this type of behaviour is representative of a Ponzi scheme.

• 1% was transferred to FX trading accounts. The Chairperson noted that this was insufficient to generate the advertised returns promised to investors.

• There were also payments to persons of interest, however due to the ongoing nature of the investigation further comment cannot be made on this issue.


• Only one payment of $100,000 appears to have been transferred to an overseas bank accounts from our investigations to date.

Assets Secured

• The Chairperson noted that Mr Iervasi has advised the Liquidators that there are no funds overseas and through his lawyers, he has signed a statement to this effect.

• The Chairperson then advised that Mr Iervasi had informed him he misled investors about funds being overseas as a means of appeasing investors when he is approached in public.

• Liquidators have contacted all major banks in Australia (10+) and Forex trading platforms/ brokerage houses (25+) to look for other accounts. To date no other accounts have been found other than that disclosed by Mr Iervasi.

FX Trading • It is the Chairpersons’ opinion that the Companies undertook

minimal trading. The majority of the former FX traders interviewed have advised that they would work from home and only ever traded c.$50,000 at any one time, which is significantly less than 1% of the funds under management.

• Traders would mostly lose or at best breakeven. No trader was making consistent monthly gains.

• The November 16 (US Election) and January 17 (US Inauguration) funds were never traded.

Insurance policies

• The Chairperson advised that there have been a large number of

inquiries regarding the insurance policies. The Chairperson noted that this is an area where he cannot comment as he does not want to prejudice any rights available under the policies.


• The Liquidators have issued correspondence to the Companies insurer notifying them of the circumstances of their appointment and taken the necessary steps to preserve their rights under certain insurance policies.

Directors Report as to Affairs

• As Director of the Companies Mr Iervasi has provided the

Liquidators with his Directors Report as to Affairs, this is a requirement of all Directors once a company goes into Liquidation. This report summaries the financial position of the company on the date of Liquidation.

• The Chairperson advised that despite the Liquidators’ requests pursuant to the Corporations Act 2001, the other recorded director based on the Companies fillings with ASIC, Mr David Sipina, has failed to submit a RATA to the Liquidators.

Interviews conducted to date The Chairperson explained one of the main focuses of the Liquidations has been finding out where the money has gone. The other key area has been talking to relevant individuals about the business. The Liquidators have completed the following interviews:

• Mr Tony Iervasi • Mr Athan Papoulias • Mr Anshul Gupta • FX traders of the Companies • However despite numerous request to date, Mr David Sipina

has declined to be interviewed.


Legal Action • The Chairperson advised that Liquidators hold Public

Examinations powers that can be used to gather further evidence. It is the Liquidators intention to publically examine a number of key individuals in the forthcoming months.

• Individuals will be compelled to answers questions and provide information as they will be brought before the Court where they will be cross examined.

• This, combined with the interviews and forensic analysis will determine what legal proceedings are commenced by the Liquidators to recover assets for the benefit of the investors.

• The Liquidators do not get involved in criminal prosecution. Such criminal proceedings are brought by ASIC and the Crown Prosecutor.

• ASIC freezing orders on Mr Tony Iervsi, Mr Athan Papoulias and Mr David Sipina are currently in place until 4 September 2017. It is the Liquidators intention to seek an extension to these freezing orders.

• The Liquidators are aware that the former matrimonial home of Mr Tony Iervasi was sold recently as part of a family law settlement and the net proceeds paid to his ex-wife.

Brexit

The Chairperson gave an update on the Brexit funds that have been invested.

• It is the Liquidators intention to expedite the Brexit matter

starting with an application to the Court within the next 3 weeks.

There are two scenarios with how these funds could be dealt with:

1. Funds deemed to not be held on trust and are part of a general pool to be shared by all creditors; or 2. Funds deemed to be held on trust and to be repaid back to original investors less costs of the process

• Investors will be provided with separate notice in writing on this process in due course.

• A Brexit investor has sought to commence legal action against the Companies. However, the investor will need leave of the court which has not yet been granted.


Liquidators’ Remuneration The Chairperson explained the remuneration process: • The Liquidators' remuneration is charged on a time cost basis. • To ensure the costs of the Liquidation are kept as low as

possible, the appropriate levels of staff are responsible for certain work streams.

• The Liquidators' remuneration is approved by either creditors, the Committee of Inspection (if one is appointed) or the Court.

• A full detailed remuneration report will be issued prior to the Liquidators seeking approval of their remuneration which will be drawn from the available assets of the Companies appropriately.

Timeframe and updates The Chairperson gave a timeframe estimate and explained when creditors would be updated during the liquidation: • It is unlikely that a dividend will be paid to the general body of

creditors (Swing/Elite etc) for at least 12 months. • It is the Liquidators' intention to expedite the Brexit matter.

However, the Liquidators are subject to the availability of the Court for approval of their proposed distribution model.

• It is the Liquidators' intention to provide creditors with updates when a significant event occurs or a milestone is reached. It is not the intention to provide monthly updates as this will only add to the cost of the Liquidations.

• To keep the cost of the Liquidation as low as possible all creditors will be provided with the same information at the same time.

Tax Issues • The Chairperson advised that the Liquidators are unable to

provide any tax advice to creditors. Please contact your own taxation accountant.

Australian Mutual Holdings • The Companies operated a registered investment scheme via

Australian Mutual Holdings in the name 'Courtenay House Capital Investment Fund'.


• The scheme was operated and overseen by Halifax and appears to have been registered.

• The Liquidators have been advised by representatives of Australian Mutual Holdings that the large majority of creditors whose investment was in the registered investment scheme have been contacted by Australian Mutual Holdings. However, should you believe that your holding was in the 'Registered Scheme', please contact Lilly Case at [email protected] or on (02) 9241 7959.

QUESTIONS FROM CREDITORS: The Chairperson opened the meeting to questions from creditors.

A summary of the questions raised and responses are as follows: Creditor: Justin Gale representing The Jam Investment Trust, a

creditor of Courtenay House Capital Trading Group (In Liquidation).

Question: Regarding AMH, what is Halifax's duty of care giving

an AFSL to Courtenay House? Much of their paperwork and advertising had the AMH AFSL all over it and they were representing to investors they held an AFSL. Halifax should have known that the Companies were representing themselves as holding an AFSL and most people here believed that there was a connection and that the AFSL was being used by the Companies. It appears they have just wiped their hands of it and walked away.

Answer: Courtenay House would have been aware that Halifax had an AFSL and there may have been instances where investors relied on the Halifax AFSL to give themselves confidence in investing in that scheme, a legitimate scheme. From what we can tell the scheme that related to the Halifax money was actually used for FX Trading. We do not believe that the money that went into the Halifax fund was used for the Ponzi Scheme. Creditor: Geneve Grasso representing Life Smart Retirement, a creditor of Courtenay House Capital Trading Group (In Liquidation) Question: In relation to Brexit, you continue to say that it will take 12 months and Brexit will be fast tracked and that there are two possible scenarios. The first that Brexit will go into the pool and the second that Brexit gets paid out. Reading between the lines you are looking at paying Brexit money out earlier. Going back to what was said previously; the two US trades (e.g. inauguration fund raising) that were not traded eventually become part of the Ponzi


Pool. Why is the Brexit money not treated therefore like the other funds? What makes it so different?

Answer: There are number of characteristics around the Brexit money that make it special to the general bucket of money that was in the Westpac account. The first is the nature of the agreements investors entered into, it also includes how that money was dealt with. Within the main general account, the Westpac account, money was coming in and out to pay general expenses such as the rent etc and pay returns to creditors as part of the Ponzi Scheme. The Brexit NAB account was very different. Looking at the other promotions that they did, it was fairly similar. They would say did you know we have a special promotion running this month. You are going to make a 15% return because of the large volatility in the FX market. If you go back they had the “Trump inauguration” and the “US Elections” promotions. The money would flow into the NAB account but it would just sit there, it was never traded at the end of the month, some investors would seek their money back and a return – other investors would roll their investment into another product. With the Brexit money the funds were still sitting in the account. This creates legal technicalities.

Follow up question: I can understand what you are saying. However I am looking at the precedence of the two previous US trades which I am presuming were transacted in exactly the same way. People took their money out and the rest of it went back into the Ponzi Pool to become part of the general transaction trading. The only difference here is the money got stopped from doing anything because of the ASIC action. I would like to know as someone who is part of the general trading who is now going to get $30 million less into the pool available for distribution, why it is not being regarded with the same intent as the two US trades?

` Answer: The reality is that scenario could be considered by the Court. I’m not saying it’s not possible, we will have to look at both scenarios, the data and evidence and put it to the Court to make a determination.

Creditor: Douglas Cotton, creditor of Courtenay House Capital Trading Group (In Liquidation) Question: I put most of money in before 1 April 2017 not in the Brexit fund but in the normal fund. I see no practical difference. Will you consider the payments that have been made to investors as returns of their capital, has that decision been firmly made? An investor that has received 90% of their money back then treated as


investing 10% of outstanding capital.

Answer: No that decision has not been made. It is up for consideration and discussion. The point being made by Douglas is that earlier investors in the scheme had the benefit of returns and through those returns they received an amount equivalent to their original capital. It is a contentious issue and depends on your personal position; earlier investors would still see it as their capital outstanding. We will need to look at the case law and will need to look at what precedents exist. When we get to the point to determine these contentious issues we will look at the balance of the evidence and form a view to make a recommendation to the Court. We will also give the opportunity to investors if they disagree to be heard by the court.

Creditor: Unknown

Question: Were Tony and the Directors aware that ASIC were investigating them and that the companies were going to be closed? If so, was there any investor that withdrew their money in full, within the week or so before?

Answer: My understanding is no. The ASIC investigations were done covertly. When the freezing orders were put in place they were done confidentially, so they did not have notice of it. That’s my understanding.

Creditor: Ian Hamer, creditor of Courtenay House Capital Trading Group (In Liquidation)

Question: At the moment there is a travel freeze on Tony Iervasi. I understand that you are requesting an extension of the freeze on the actual assets, but will the travel ban be requested to be extended as well? And also considering that Mr Sipina is not being helpful, we you also be seeking a travel ban on Mr Sipina as well?

Answer: The travel bans were requested by ASIC, so it is ASIC that will need to ask for them to be extended or imposed. I suspect they will ask for the travel ban to remain for Mr Iervasi. I believe he has actually surrendered his passport. I have asked him the question directly if he has another passport and he said he does not. In terms of Mr Sipina, again it is something that we can put to ASIC in terms of the travel ban but ASIC would have to show the Court that he is a flight risk to be successful.


Creditor: Stewart Free proxy for Sam M Jessop, creditor of Courtenay House Capital Trading Group (In Liquidation)

Question: Just in relation to your remuneration, how much Work in Progress is there currently on the clock?

Answer: c.$400,000 + gst

Follow up: Is it your intention to go to the Committee of Inspection to get that fee approval or would you go back to the general body of creditors?

Answer: If we had the committee we would in the first instance ask them to approve it.

Creditor: Janet Timberg, creditor in both Courtenay House Capital Trading Group (In Liquidation) and Courtenay House Pty Ltd (In Liquidation).

Question: Why did Westpac not look at the accounts that Tony opened when all this money came flowing in. Why wasn’t Westpac more aware of what was going on with one of their accounts?

Answer: We are actually looking at Westpac and what they should have known and what they actually did know. The examination process I touched on before will be helpful in that regards as it allows us to not only interview under oath individuals, we can also subpoena books and records of institutions or individuals to help us with our investigations.

Creditor: Luke Buxton, creditor in Courtenay House Capital Trading Group (In Liquidation)

Question: How long were ASIC covertly looking at the Companies?

Answer: I suspect it was months not weeks.

Follow up: Is that something you could find out?

Answer: I can ask and if ASIC are willing to share that information then we can put something up on our website.

Creditor: Unknown

Question: Further to the question about preferential payments, will money come back from accounts that have received more than 100% of their investment? Of the 90% of funds flowing out of the


bank accounts, have those transaction been traced back to actual bank accounts, so that it can be determined if preferential payments may have been made? Are there any ghost companies that might exist?

Answer: From what we can tell at this point in time we think the

majority of outflows from the bank accounts relate to payments to investors that put their money in. This is one of the reasons we want to get to the bottom of information from the banks to make sure there aren’t any ghost companies that are receiving these proceeds. From what we can tell, the majority of payments appear to be to investors. The preference payment point, Liquidators do have certain powers to claw back payments made in the 6 months leading up to the Liquidators’ appointment and in some cases can go back even further. If the Liquidators feels that one party is preferred over another then they can seek that money back. There are a number of things that need to be satisfied; one of which is the person that received the payment was aware it was a Ponzi Scheme or the Company was insolvent. At this point in time, it will be difficult to prove that the bulk of investors knew that this was a Ponzi scheme, or that the Companies were insolvent when they received their payment.

Creditor: Michael Frydman representing Gehlt Pty Ltd, creditor in both Courtenay House Capital Trading Group (In Liquidation) and Courtenay House Pty Ltd (In Liquidation).

Question: Can you give an indication of the value of assets that have been frozen against the three main people at the moment?

Answer: Difficult to say, there are a couple of assets that are relatively material, the main one that I am aware of is $1.5 million in a casino account of Mr Iervasi. There are some properties but there are mortgages against those properties therefore trying to calculate how much equity is in those properties is difficult to say at this point in time.

Creditor: David Milutin representing Milutin Discretionary Trust, creditor in both Courtenay House Capital Trading Group (In Liquidation) and Courtenay House Pty Ltd (In Liquidation).

Question: In relation to ASIC acting covertly, I’m not sure how covert it would have been. I was interviewed by ASIC and others were interviewed over the phone, some in person and I am not sure how much of that went back to the Directors. I panicked when ASIC approached me, they were unable to divulge why but I got nervous. I had my life saving invested and I grew up with


David Sipina. I had a meeting with Tony Ierversi to question him. He and I sat in an office somewhere in Darling Harbour and Tony told me my funds were safe and nothing has changed apart from those in the superannuation fund. If any investors did receive commissions is there a possibility of recouping those funds? If they are Directors it is probably caught up in everything else but were there any external individuals receiving commission?

Answer: Yes, there were commissions paid, they ran what was

called a partner scheme. People would get referrals for bringing in other investors. Some were existing investors; some were professional parties that ran seminars as a means to promote various products. This would have been one of the products of the day and in some instances commissions were paid. The pie chart shown earlier shows there was a portion called persons of interests, that includes some of those parties. So far we have identified $5 – $6 million over the last 2 to 3 years. However, we actually think it is a lot higher than that and as we get to the bottom of the 10,000 line items we will get a firmer view. It is one of those things that we can only say so much on without prejudicing the outcome. This is an area that we will be focusing our investigations.

Follow up: Is it illegal to receive commissions?

Answer: Not necessarily.

Creditor: Joe Barber representing Northgate Bay, creditor of Courtenay House Capital Trading Group (In Liquidation)

Question: Regarding the property where the proceeds went to the ex-wife; if that house was acquired with proceeds of crime would that not override the Family Court order and should, or can we apply for those funds to be frozen if it is determined that it is a Ponzi scheme.

Answer: Until we can work out if the house was purchased with investor money. We are unable to do anything. The gentleman pointed out the house was purchased a long time ago, over 20 years ago. All I can say is ASIC had a long hard look at this. They were the party involved in the proceedings. They decided that there were sufficient grounds to release the equity in the property to the ex-wife.

Follow up: I was at a function where Tony was talking about the investment he had made in a health app, solar roof tile company and a couple of properties he had bought around Bondi Junction.


He was quiet open about this. Answer: If you have any information relating to other assets and you have evidence of them please write to us so we can investigate them. One thing that we do in an investigation piece is follow the cash and we will work out where the money has gone. This is how you prove these things in Court. You cannot go to the judge and say he said this to me and I think that belongs to us please give it back. We have to follow the cash and this is a very tedious and arduous exercise but to have any chance in recoveries and to be successful, that is how we have to do it.

Creditor: Peter Samious representing Ekaton Super Fund, creditor in both Courtenay House Capital Trading Group (In Liquidation) and Courtenay House Pty Ltd (In Liquidation)

Question: In relation to Brexit any self-managed super fund should not have been allowed to invest in the Brexit component as it would have been illegal. If that is the case, where those monies accepted wrongly and then should they be returned?

Answer: At this point in time I don’t know enough to answer that question, whether it has come from a super fund, trust or individual investor, from our perspective looking at the argument of trust, it makes no difference.

Creditor: John Todaro, creditor in both Courtenay House Capital Trading Group (In Liquidation) and Courtenay House Pty Ltd (In Liquidation)

Question: If commissions weren’t disclosed were they “legal”?

Answer: It depends if they were of such a nature that needed to be disclosed. Without looking at the details it is too early to comment on that.

Creditor: Unknown

Question: Regarding the family home, although purchased long ago, when was it paid and how was the mortgage payments made?

Answer: Unsure how the mortgage was paid.

Creditor: Carmelo Stillisano proxy for multiple creditors

MINUTES OF MEETING OF CREDITORS OF: COURTENAY HOUSE CAPITAL TRADING GROUP PTY LTD(INLIQUIDATION) ACN 152 224 149 COURTENAY HOUSE PTY LTD (IN LIQUIDATION) ACN 130 607 644 HELD AT THE WESLEY CENTRE, 220 PITT STREET, SYDNEY NSW ON 31 JULY 2017 Question: There was a relationship of trust established with the

Brexit funds. The other funds are not held on trust.

Answer: I do not have a final view on whether the Brexit funds are held on trust or not. I am however going to expedite the process on making a determination on that. As previously mentioned there are certain characteristics surrounding the Brexit funds in the NAB account that are different to the Westpac account. We are going to look at those and look at both sides of the argument to ensure that when the Court is presented with the facts they have a balanced view around making a decision.

Follow up: So when you make the presentation to the Judge on

your position as to whether A or B is there a counter party to your argument?

Answer: There can be a counter party and we might facilitate a counter party to be present.

Creditor: Unknown

Question: Was it a legitimate insurance policy? Does it provide against fraud?

Answer: I can say the insurance policy is real. It is a legitimate insurance policy. I cannot comment further on the insurance policies.

Creditor: Michael Starr representing Michael and Julie Starr SMSF, creditor in Courtenay House Capital Trading Group (In Liquidation)

Question: What happens if you deposited money after the accounts were frozen?

Answer: They are in the same bucket as funds deposited prior, there is no distinction.

Creditor: Bryce Huntington, creditor in both Courtenay House Capital Trading Group (In Liquidation) and Courtenay House Pty Ltd (In Liquidation)

Question: Will the payment we have received be deducted from our capital?

MINUTES OF MEETING OF CREDITORS OF: COURTENAY HOUSE CAPITAL TRADING GROUP PTY LTD(INLIQUIDATION) ACN 152 224 149 COURTENAY HOUSE PTY LTD (IN LIQUIDATION) ACN 130 607 644 HELD AT THE WESLEY CENTRE, 220 PITT STREET, SYDNEY NSW ON 31 JULY 2017 Answer: Too early to say, whether it should or should not be

deducted. There are arguments for both we haven’t reached a decision on that.

The Chairperson drew questions to a close. COMMITTEE OF INSPECTION: The Chairperson advised creditors had the opportunity to appoint

a Committee of Inspection. (“COI”) The Chairperson explained the purpose and function of the COI

and advised a workable committee is between 4 – 6 members. It was proposed that there was sufficient interest in forming a

Committee of Inspection. Creditor: Aaron Harding

Question: Explain the difference between the two companies and is there a condition of time of investment in companies? Answer: In the committee you want a mixed group of creditors; this will create a balanced view. Happy to ask for nominees to provide details of the length of time they have invested. Creditor: Unknown Question: What is the time commitment for the committee and where will the meetings be held? Answer: Nothing set yet. The committee will meet as needed. Initially may be monthly via telephone or at the Liquidators offices. Creditor: Ben Stanton representing Stanton Ent Pty Ltd ATF Stanton Property Trust. Question: Can you be on the Committee of Inspection for both companies? Answer: Yes, if you have funds invested in both companies. Creditor: Geneve Grasso representing Life Smart Retirement, a creditor of Courtenay House Capital Trading Group (In Liquidation) Question: What is the role of the committee on deciding if the Brexit funds are pooled or not. The committee could be swayed if


members are not in both companies. Answer: Cannot foresee what will happen with the Brexit funds. The following persons nominated themselves to form a Committee of Inspection for Courtenay House Pty Ltd (In Liquidation).

Creditor Name Representative Michael Beiruty Himself David Milutin Milutin Discretionary Trust Vesna Mastoris Alex Mastoris Patricia DelVecchio Herself Carmelo Stillisano Trimfresh Investments Pty Ltd Heidi Postle M and H International Peter Melocco JP Meloco Pty Ltd Ryan Fisher Bently Co Pty Ltd Michael Frydman Gehlt Pty Ltd Vince Amore Oceanic Sun Group Janet Timberg Herself

Courtenay House Pty Ltd (In Liquidation) The Chairperson put the following resolution forward: “That Micheal Beiruty, David Milutin, representing Milutin

Discretionary Trust, Vesna Mastoris, Patricia DelVecchio, Carmelo Stillisano, representing Trimfresh Investments Pty Ltd, Heidi Postle, representing M and H International, Peter Melocco, representing JP Melocco Pty Ltd, Ryan Fisher, representing Bently Co Pty Ltd, Michael Frydman, representing Gehlt Pty Ltd, Vince Amore, representing Oceanic Sun Group and Janet Timberg, be appointed to the Committee of Inspection of Courtenay House Pty Ltd (In Liquidation)

Moved: Fleur Bishop

Seconded: Janet Timberg The resolution was carried unanimously on the voices.


Courtenay House Capital Trading Group (In Liquidation)

The following persons nominated themselves to form a Committee of Inspection for Courtenay House Capital Trading Group (In Liquidation). Creditor Name Representative Katie Peen Suxia Lin Carmelo Stillisano Kattic Investments David Milutin Milutin Discretionary Trust Michael Beiruty Himself Geneve Grasso Life Smart Trading John Todaro Himself Michael Owen Himself Ryan Fisher Bently Co Pty Ltd Michael Frydman Gehlt Pty Ltd Doug Cotton Himself Heidi Postle M and H International Luke Buxton Himself Anthony Kassis N & N Pty Ltd David Hall David Hall Investments Fleur Bishop Herself Vince Amore Oceanic Sun Group Joe Barber Northgate Aus Janet Timberg Herself

Creditor: Siraj Jamdar

Question: Can you oppose a nomination on the Committee of

Inspection?

Answer: Yes you can, you can vote each member onto the committee separately. However as the group of members is so large, can you please name the nomination you would like to have considered separately.

Follow up: Anthony Kassis

Answer: We will hold a vote for Mr Anthony Kassis first. The Chairperson put the following resolution forward:

MINUTES OF MEETING OF CREDITORS OF: COURTENAY HOUSE CAPITAL TRADING GROUP PTY LTD(INLIQUIDATION) ACN 152 224 149 COURTENAY HOUSE PTY LTD (IN LIQUIDATION) ACN 130 607 644 HELD AT THE WESLEY CENTRE, 220 PITT STREET, SYDNEY NSW ON 31 JULY 2017 “That Anthony Kassis, representing N & N Pty Ltd, be appointed

to the Committee of Inspection of Courtenay House Capital Trading Group (In Liquidation)”

Moved: David Milutin representing Milutin Discretionary Trust

Seconded: Haley Enterprises Pty Ltd. The resolution was carried on the voices.

The Chairperson put the following resolution forward: “That Katie Peen, representing Suxia Lin, Carmelo Stillisano,

representing Kattic Investments, David Milutin, representing Milutin Discretionary Trust, Michael Beiruty, Geneve Grasso, representing Life Smart Trading, John Todaro, Michael Owen, Ryan Fisher, representing Bently Co Pty Ltd, Michael Frydman, representing Gehlt Pty Ltd, Doug Cotton, Heidi Postle, representing M and H International, Luke Buxton, David Hall, representing David Hall Investments, Fleur Bishop, Vince Amore, representing Oceanic Sun Group, Joe Barber, representing Northgate Aus and Janet Timberg, be appointed to the Committee of Inspection of Courtenay House Capital Trading Group (In Liquidation)

Moved: Heidi Postle, representing M and H International Seconded: Moshe Kalfa, representing Shalom Kalfa.

The resolution was carried unanimously on the voices. The Chairperson advised that the minutes of meeting will be

lodged with ASIC and copy will be published on the GT website in 3 weeks’ time.

MINUTES OF MEETING OF CREDITORS OF: COURTENAY HOUSE CAPITAL TRADING GROUP PTY LTD(INLIQUIDATION) ACN 152 224 149 COURTENAY HOUSE PTY LTD (IN LIQUIDATION) ACN 130 607 644 HELD AT THE WESLEY CENTRE, 220 PITT STREET, SYDNEY NSW ON 31 JULY 2017 CLOSURE: The Chairperson asked if there was any further business.

There being no further business the meeting was declared closed at 4:20PM.

Recorded as a true and accurate record of proceedings. Dated this 22nd day of August 2017

SAID JAHANI

JOINT AND SEVERAL LIQUIDATOR

COURTENAY HOUSE CAPITAL TRADING GROUP PTY LTD LIQUIDATORS ACN 152 224 149

ANNEXURE 1

Attendance Register

Meeting Attendance Register - CreditorsCourtenay House Capital Trading Group Pty Ltd (In Liquidation)1st Meeting of Creditors held at Wesley Mission, 220 Pitt Street, Sydney NSW on 31 July 2017 at 2:00 PMChairperson: Said JahaniAll Creditors

Creditor Name Name of Proxy or Attorney Creditor RATA Amount

Accorn Haven Pty Ltd Shane Peters 300000

Adam & Lisa Musgrove Adam Musgrove 100000

Adam Musgrove Adam Musgrove 50000

Air Unit Trust Alexander Greenberg 200000

Aji Financial Investment Murat Aji 350000

Alejos Super Fund Kevin Pace 100000

Alex & Vesna Mastoris Vesna Mastoris 650000

Alex Ooi & Grace Lee Vesna Mastoris 1200000

Alexandra Skoeld 250000

Alice & Joe Cassar 100000

Alicia Grant John Comino 200000

Allon Faul 175000

Amanda Gault Investments Pty Ltd Amanda Gault 200000

Amino Group Hugh Gyton 550000

Ana Claudia Rubbo David Gillis 150000

Anna Barr 300000

Anna Ngov 100000

Anna Segre Lior Segre 100000

Anne and Peter Tregeagle 200000

Anthony Heffernan 50000

Anthony Kaplan 250000

Antonella & Filippo Occhiuto 100000

Antonio Pulvirenti Marianne Pasqualina Pulvirenti 650000

Ark Holdings 800000

Cirjak Superannuation John Cirjak 150000

The Lead Trust Vesna Mastoris 600000

Barbara Colette Talbot Riordan 150000

Barbara Quigley 50000

Bentley Co Pty Ltd Ryan Adan Fisher 1000000

Blazic Family Super Fund Zeljke Blazic 400000

BOBJEN SMSF Robert Marsh 300000

Braveheart Super 50000

Bryce Huntington 200000

Caldec Property Group Pty Ltd Sia Anner 50000

Carmelo Pesce 50000

Carmen Barbalace 250000

Catherine Milne Ben Stanton 100000

Cathy & Mike Sammut 400000

Celia White 230000

Chad Hughes Chad Hughes 275000

Chivtho Ngov 50000

Chrian SMSF Mary Ugarte 100000

Chris Olsen 100000

Christine Manning / Ugarte Mary Ugarte 175000

Cirjak Bros Pty Ltd John Cirjak 50000

Craig Boothroyd 380000

D Alan Hall David Hall 250000

Dael Lane Vesna Mastoris 1750000

Dale Jackson 150000

Danae Comino John Comino 50000

Darren Hancock 100000

Darren White 300000

Darryl Higgins 275000

Das Balgi 50000

David Gillis 700000

David Hall David Hall 175000

David Hall Investments David Hall 3350000

David Knight 50000

David McKinon 200000

Diana Lo Campo 100000

Dighton SMSF Eileen Dighton 300000

Dione Angelos Dione Angelos 50000

Divkin Consulting Pty Ltd David Ko 150000

DJ Electrical David Gerrish 600000

Doreen Dawson Vesna Mastoris 50000

Doron Koresh 200000

Doug Cotton 450000

Dr Ultimate Trust Rixon Heyder 750000

DTN Exchange Trading Pty Ltd David Nguyen 350000

Dungarve Pty Ltd Siobhan Geraghty 1900000

EBS Financials Evan Stevens 50000

EC Hood Investments Pty Ltd Sean Hood 100000

Ekaton Super Fund Peter Samios 150000

Elizabeth Fabiano 50000

Ellarty Trust 200000

Faesa Investments Pty Ltd Filippo Occhiuto 350000

Feecha Pty Ltd Michael Kent 600000

Fiacra Kirk 300000

Firmy Super Fund 1000000

Fleur Bishop 350000

Flourish One Trust Sia Anner 25000

Fortune Four Us Pty Ltd Bruno De Angelis 150000

Fossil Tube Trust Mary Ugarate 200000

Future Solutions Four Pty Ltd Dale Jackson 350000

Gearoid O Connor 150000

Gehlt China Account M. Frydman 150000

Gehlt Pty Ltd M. Frydman 1250000

Geoffrey Marchant 150000

George & Megan Katsilis George Katsilis 150000

George Hines 900000

Gerard & Paula Kirwan 750000

Gervogue Super Fund Kieran Geragaty 200000

Gino Patane 150000

Giuseppe & Concettina Pulvirentini Sebastian Pulvirenti 100000

Golden Buddah Trust Adam Cooke 50000

Graeme Lord Michael Starr 100000

Grant Hazel 300000

Haley Enterprise Gary Haley 350000

Hall SMSF David Hall 320000

Helena Blazic 50000

Hidassy Pty Ltd Charlie Stillisano 550000

High Performance Smash Repairs 500000

Himbla Pty Ltd - Matthew Pace Family Trust Michael Kent 2000000

Hutchitson & Quigley Pty Ltd Barbara Quigley 400000

Icon Security Investigations Pty Ltd Imad Zaineddine 150000

Infinite Limitless Georgia Bartley 270000

Inspiration One Saiful Chowdray, Heidi Postle 2650000

Intaprod International Partnership 650000

Irena Lombardi Michael Lombardi 50000

J & A Developing Pty Ltd Joe Zacari 500000

Jack Chan 350000

Jamdar SMSF Siraj Jamsisar 200000

James Melocco 600000

Jan Beach 100000

Janet Timberg 1350000

Jason & Naomi Triplett 100000

JBL Super Fund Kimberley Campbell 200000

Jeffrey Yicki Wai Jeffrey Szeko 550000

Jelena Spajic 100000

Jennifer Lee Marsh J. Marsh 250000

Jim Fallas 50000

Joanna Surucic 50000

Joe & Lynn Disalvo 50000

John & Hillary James John James 200000

John & Maria Hunt 400000

John Comino 50000

John Gregoarce 350000

John Pannucio 200000

John Todaro 450000

Joseph Iervasi Marianne Pulvirenti 50000

Jossette Bennette 50000

JP Melocco Pty Ltd 2200000

Julian & Mary Ugarte Mary Ugarte 200000

Julian Daniel Ugarte Jnr Mary Ugarte 50000

Julian Ugarte & Lucinda McCarthy Mary Ugarte 50000

Julie Smith Julie Smith 200000

Karl Haidenbauer 150000

Katie Peen's Dad - Keqiang Zhao Katie Qi Peen 200000

Katie Peen's Mum - Jiqiang Katie Qi Peen 200000

Katie Peen's Mum - Suxia lin Katie Qi Peen 400000

Katie Peen's Sis - Ying Zhao Katie Qi Peen 200000

Katic Investments Carmelo Stillisano 1300000

Keanen Wood 200000

Kevin Pace 200000

Kimberly Campbell Zeltnar 160000

Kirwan SMSF Gerard Kirwan 700000

Lara Olivia Simons & Trent Marsh Trent Marsh 250000

Liam & Margaret Irwin 500000

Life Smart Retirement Geneve Grasso 100000

Life Smart Trading Geneve Grasso 500000

Lisa Guglielmi 50000

Lisa Pesce - Pesce Investments Rocco Pesce 350000

Luke Buxton 350000

Luke Pitt David Gillis 150000

M and H International Pty Ltd Heidi Postle 825000

Malcolm Robertson 356000

Maree Abela 25000

Margaret Cheetham 100000

Marianne Iervasi 150000

Marilena & Sebastian Pulvirentini 250000

Mark D Murray 150000

Mark Hancock 100000

Mark Sutters Mark Suters 50000

Mark Tobin 350000

Marko Blazic S Blazic 50000

Mathew Michael 250000

MCKRF Michael Kent 200000

McLachlan Super Fund Robert McLachlan Super Fund 4385000

Mia Cassin 200000

Michael & Jennifer Farrell Michael Farrell 50000

Michael Farrell Michael Farrell 150000

Michael Owen 800000

Michael Starr & Julie Starr SMSF Michael Starr 50000

Micheal & Carol Beiruty 200000

Michelle Johnson 200000

Mihcael John Sullivan 50000

Mike Russel 150000

Milutin Discretionary Trust David Milutin 700000

Milutin SMSF David Milutin 400000

MJC O Sullivan Pty Ltd Michael O'Sullivan 200000

Mr Eric Gamallo 490000

Mrs Garyfallia Comino John Comino 240000

N&N Pty Ltd 800000

Natalia & Tolga Ors 500000

Nesnas Ent Pty Ltd Charles Nesnas 250000

Nick Bava 400000

Nicola Quick 100000

Nicole Frydman 150000

Nicole Kristen Aldersey 100000

Northgate Aus Joe Barber 450000

Northgate Bay Joe Barber 200000

Oceanic Sun Group Vince Amore 8800000

Olega Del Pelagosa 150000

Ophir Zenou 200000

P&A Hunter Pty Ltd ATF Maud Family Trust Anupriya K Raundran 150000

Pandt Group Pty Ltd 250000

Paul Pennings 150000

Paul Timothy Woodley 200000

Pesce Family Trust Carmelo Pesce 975000

Peter Bimbi 150000

Peter James Bowers 150000

Peter Teklic Susan Teklic 100000

Phil Brodbeck 150000

Pivot Fund Pty Ltd Saiful Chowdaury 415000

Pivot Investment Trust Saiful Chowdaury 650000

Pivot Trust Fund Saiful Chowdaury 250000

Precise Super Fund Dean M. ** 3425000

Pro Health Asia Pacific Michael O'Sullivan 300000

PT Triple M Pace Farms Michael Kent 50000

Quarrymen Capital Pty Ltd James Brendling 200000

Quigley Family Trust Stephen Quigley 400000

Quigley Super Fund Stephen Quigley 100000

Rachel Jones & Paul Williams Ben Stanton 100000

Raffaella Bronzi John Todaro 100000

Ralph & Patricial Del Vecchio 200000

Richard & Rachelle Beesley 200000

Robert Giardini 550000

Robert Magro David Gillis 100000

Robert McLachlan 1980000

Robert Nahas 350000

Rocco Gerace 250000

Rocco Marrapodi 150000

Rodgers Realty SMSF Vincent Pisani 500000

Rohan Baker 100000

Ron Pennings 250000

Ron Sheldon 400000

Rose Hyamson Superannuation Fund Rose Hyamson 150000

Ruth Donald Saiful Chowdray or Heidi Kalfa 500000

S Peters 200000

Sahara Grill Pty Ltd Umran Can Aras 150000

Sally Anne Wilson 200000

Sally Harvey White 100000

Sam Jessop Stewart Free 450000

Sarah Austin G. Austin 800000

Sardoz Pty Ltd Andrea Agus 100000

Shalom Kalfa Moshe Kalfa 200000

Indiki P Perera Indike P Perera 250000

Silver Fox Maintenance Pty Ltd Luciano Lombardo 100000

Simat Super Fund Charlie Stillisano 150000

Sophea Meng 50000

Sports Promoters SMSF Linda Halligan* 200000

Squires Super Fund Alistair Gordon Squires 250000

St Francis SMSF 50000

Stanton Ent Pty Ltd ATF Stanton Property TrustBen Stanton 250000

Stefan Sudar 100000

Stephen Hill SMSF Stephen Hill 100000

Stephen Newell 400000

Strati Holdings Domenic Strati 700000

Su Burditt (Dael Lane's Mum) Vesna Mastoris 500000

Susan Campbell Ben Stanton 100000

Susan Denton 50000

Susan Gabriel-Dzidowski 200000

T&M SMSF Pty Ltd Marianne Pulvirenti 50000

Tal & Berg Pty Ltd 300000

Telkic Super Fund Dubrovka Teklic 100000

Terry Einfeld Terry Einfeld 50000

Terry Family Superannuation Fund 200000

The Abundance Fund Sia Anner 50000

The Arm trust Ross Blyton 150000

The Borregine Family Trust Luca Borreggine 150000

The Jam Investment Trust Justin Gale / Megan Gale 900000

The Estate of Late Josephine Iervasi Michael Lombardi 50000

The Te Family Trust Ka Yin Cheung 550000

Timber Blair Pty Ltd ATF Timber Blair Trust I Sucilowati 500000

Timothy James Ellison Shelley Rose Ellison 250000

TPG SMSF Ben Stanton 250000

TPG Trust Ben Stanton 500000

Tracy Flynn 150000

Trimfresh Investments Carmelo Stillisano or Carmelo Stillis 500000

Valerie & Keith Bradshaw 200000

Veurve Pty Ltd Phil Keenan 150000

Vince Valente 300000

Wayne Wilson 1050000

West Grubstead Trust John James 100000

Yan Wang 300000

Yuling Cao 350000

Zandra Bassille Mangoroa Hahipene 350000

Meeting Attendance Register - CreditorsCourtenay House Pty Ltd (In Liquidation)1st Meeting of Creditors held at Wesley Mission, 220 Pitt Street, Sydney NSW on 31 July 2017 at 2:00 PMChairperson: Said JahaniAll Creditors

Creditor Name Name of Proxy or Attorney Creditor RATA Amount

907 Capital trust 50,000.00

Agate 5888 Trust 50,000.00

Aji Financial Investments Murat Aji 400,000.00

Alex Mastoris Vesna Mastoris 100,000.00

Alex Ooi & Grace Lee 400,000.00

Alexandra Skoeld 50,000.00

Alison Brown 50,000.00

Andy Cotrill 50,000.00

Animo Group 100,000.00

Anna Barr 50,000.00

Anna Lee 50,000.00

Anna Ngov 50,000.00

Anna Segre 100,000.00

Anthony & Jenny Bava 100,000.00

Anthony David White 50,000.00

Anthony Kassis 200,000.00

Anthony Paul & Marian Dawson 50,000.00

Antonio & Francesca Scalici 50,000.00

Barbara Riordan 100,000.00

Bently Co Pty Ltd Ryan Adan Fisher / Tessa Fisher 350,000.00

Borrengine Family Trust 100,000.00

Brendon & Lynette Parker 50,000.00

Bryce Huntington 100,000.00

BS & BD Holdings 250,000.00

Carlos De Conceicao 100,000.00

Carmen Barbalace 50,000.00

Carrie Farrell 100,000.00

Celia White 50,000.00

CF Management Pty Ltd 1,000,000.00

Cirjak Bros Pty Ltd 50,000.00

Clarity Pty Ltd Mr Michael Starr or Mr Malcolm Robertson 100,000.00

Co Invest Aus Pty Ltd 250,000.00

Craig Boothroyd 50,000.00

DA Hall Investments 250,000.00

Darren White 100,000.00

David Donald 100,000.00

David Gillis 50,000.00

Deboah & Eugine Devizio Phil Kennan or Mary Ugarte 50,000.00

Del Vecchio Family Trust 500,000.00

Dione Angelos 50,000.00

DJ Electrical 50,000.00

Doron Koresh 150,000.00

Dr Ultimate Trust 250,000.00

DTN Exchange Trading Pty Ltd 400,000.00

Dungarve Pty Ltd 200,000.00

DW Trades 100,000.00

Ekaton SMSF Peter Samios 100,000.00

Ellarty Pty Ltd 50,000.00

Errolyn Strang 50,000.00

Evan Haugh 100,000.00

Fiachra Kirk 100,000.00

Fleur Bishop 50,000.00

Gearoid O Connor 50,000.00

Gehlt Pty Ltd 250,000.00

Geoffrey Marchant 100,000.00

Gerard & Paula Kirwan 150,000.00

Giancarlo & Sharon Libut 50,000.00

Giuseppe & Concettina Pulvirenti Sebastian Pulvirenti or Marilena Pulirenti 50,000.00

Golden Buddah Trust 50,000.00

Grant Hazell 800,000.00

Hendrik & Tharina Rabe 50,000.00

Hoe Ping Lo 100,000.00

Ian Dolan 50,000.00

Icon Security 50,000.00

Irina Shcherbakova 300,000.00

Ivanka Banach 50,000.00

J&A Developing 1,500,000.00

Jan Beach 100,000.00

Janet Timberg 100,000.00

Jason & Naomi Triplett 100,000.00

Jeffrey Yicki Wai 150,000.00

Jennifer & David Stuart Adam Cooke 100,000.00

Jennifer Lee Marsh 150,000.00

John & Anna Gregorace 100,000.00

John & Maria Hunt 800,000.00

John & Sandra Cirjak 50,000.00

John Ellison 150,000.00

John Panuccio 200,000.00

John Todaro 150,000.00

Joseph Borg 50,000.00

JP Meloco Pty Ltd 500,000.00

Julie Gorman 50,000.00

Keanen Wood 50,000.00

Leon Ryeland 50,000.00

Liane Gorman 50,000.00

Linh Lam 50,000.00

Lisa Perri 300,000.00

Liyu Zhu 400,000.00

Lotus DM Pty Ltd 50,000.00

M and H International 400,000.00

Marianne Leese 50,000.00

Marilena & Sebastial Pulvirenti 100,000.00

Mark & Susan Dzidowski 50,000.00

Mark Tobin 50,000.00

Matt Daly 50,000.00

McQueen Family Trust 50,000.00

Michael & Carol Beiruty 100,000.00

Michael Farrell 100,000.00

Michael Owen 150,000.00

Michael Russell 100,000.00

Michelle Johnson 100,000.00

Milutin Discretionary Trust 200,000.00

Mitchell Wood 50,000.00

MLC Grahame Pty Ltd 50,000.00

Mrs Garyfallia Comino 100,000.00

Mubina & Sirajuddin Jamdar 100,000.00

Nesnas Ent Pty Ltd 50,000.00

Nicola Quick 50,000.00

Nikolina Blazic 150,000.00

Nina Girsa 50,000.00

Oceanic Sun Group 6,000,000.00

Oliver Dixon 50,000.00

P&M Faga Pty Ltd 50,000.00

Pandt Group Pty Ltd 50,000.00

Paul Woodley 250,000.00

Pesce Family Trust 200,000.00

Peter Bimbi 150,000.00

Peter Teklic Susan Teklic 50,000.00

Phil Kinder 50,000.00

Pivot Fund Pty Ltd 50,000.00

Quantrum Sterling Investments 200,000.00

Ralph & Patricial DelVecchio 150,000.00

Robert Giardini 200,000.00

Robert Light 50,000.00

Robert Nahas 200,000.00

Rodgers Realty SMSF 100,000.00

Ross Blyton Ross Blyton 50,000.00

Rulai Pty Ltd ATF Rulai Trust 50,000.00

Sally Harvey White 50,000.00

Sarah Austin 200,000.00

Seasaltsurf Trust 100,000.00

Shane Peters 100,000.00

Shore Sight Pty Ltd 100,000.00

Show Manager Pty Ltd 50,000.00

Sidney & Maria Cummins 50,000.00

Stanton Enterprises Pty Ltd 200,000.00

Stark Investing Strategy Pty Ltd 600,000.00

Sylvio Pirotta 500,000.00

Tal & Berg Pty Ltd 100,000.00

Tarquin Iervasi 50,000.00

Teklic Family Trust Dubroavka Teklic 100,000.00

The Fish Trust 50,000.00

The Somerford Trust 100,000.00

The Te Family Trust 250,000.00

Timber Blair 150,000.00

TPG Trust Ben Stanton 50,000.00

Tracy Flynn 50,000.00

Trimfresh Investments Pty Ltd Carmelo Stillisano or Carmelo Stillasno 500,000.00

Trust 100,000.00

Trust A/c 50,000.00

Valerie Bradshaw 50,000.00

Vince Valente 50,000.00

Vincenzo Lisbona 50,000.00

Wishton Wish Project 150,000.00

Xavia Pty Ltd 200,000.00

Xpress International Matthew Michael 50,000.00

Yan Wang 50,000.00

Your Best Pty Ltd 100,000.00

Yuling Cao 100,000.00

Zandra Hahipene 100,000.00

Zilligent Pty Ltd 100,000.00

COURTENAY HOUSE CAPITAL TRADING GROUP PTY LTD

LIQUIDATORS ACN 152 224 149

ANNEXURE 2

Observers’ Register

COURTENAY HOUSE CAPITAL TRADING GROUP PTY LTD LIQUIDATORS ACN 152 224 149

ANNEXURE 3

Chairpersons’ Presentation to the Meeting of Creditors

© 2017 Grant Thornton Australia Ltd | | 31 July 2017

Courtenay House Pty LtdCourtenay House Capital Trading Group Pty Ltd(all in Liquidation)("the Companies")Meeting of CreditorsMonday, 31 July 2017, 2.00pm

© 2017 Grant Thornton Australia Ltd | | 31 July 2017 2

Agenda

1. Welcome

2. Declaration of Independence, Relevant Relationship and Indemnities/Background/ASIC

3. Update on the Liquidations

4. Questions

5. Resolutions for Committee of Inspection

6. Closure of Meeting


1. Welcome• Said Jahani and John McInerney were appointed Joint and Several Liquidators of the Companies on

16 May 2017 pursuant to an order of the Supreme Court of NSW.

• Said Jahani will act as Chairman of the meetings in accordance with Regulation 5.6.17(1) of the Corporation Act Regulations.

• The meetings of Courtenay House Pty Ltd and Courtenay House Capital Trading Group Pty Ltd will be held concurrently.

• The meetings have been called in accordance with the notice of meetings dated 19 July 2017, as advertised on the ASIC website on 24 July 2017.

• A quorum is present and the meetings are being held at a date, time and place convenient to the majority of creditors.

• Resolutions put to the vote will be decided on the voices (using your coloured voting cards) unless a poll is requested.

• The meetings are being recorded for ease of minute taking and a copy of the minutes of the meetings will be available on the Grant Thornton website within 4 weeks of the meetings.


2. Liquidators' DIRRI/Background of Appointment/ASIC• Reference is made to the DIRRI provided in our notice to creditors dated 19 July 2017 which was

lodged with ASIC and published on the Grant Thornton website.

• The Liquidators' DIRRI provides background on how the Liquidators were appointed in the matter. We are not aware of any reasons that would prevent us from accepting the appointment. The DIRRI is taken as read for the purposes of the meetings.

• The Liquidators and ASIC are in regular correspondence and assisting each other with their investigations to the extent that they are permitted to do so by law. Example: Under the ASIC Act 2001, ASIC is unable to disclose to any party, including the Liquidators, information they obtain via their statutory powers such as a compulsory examination of an individual.

• Despite receiving a large number of questions from creditors, the Liquidators and ASIC cannot comment on ASIC's on-going investigation as it is a confidential in nature and may prejudice ASICs on-going investigation/action.


3. Update on the LiquidationsKey Headline Points

• Companies appear to be a Ponzi scheme. Based on interview's with the director, Tony Iervasi and initial forensic accounting investigation.

• We have secured assets totalling c.$52 million.

• Unsecured creditors owed c.$197 million, being c.$29 million due to Brexit investors and $168 million due to investors in Swing, Elite etc.

• Brexit creditors estimated at 162 with a further estimated 620 creditors in Swing, Elite etc. However, we note that there may be a duplication.


3. Update on the LiquidationsForensic Review/Company Records

• No proper accounts maintained.

• Liquidators forced to go back to source documents starting with bank statements.

• The Liquidators are currently reviewing the bank statements to recreate the Companies financial records.

• In the 3 years to 2017, there are over 10,000 line items in the bank statements to review and code. The Liquidators will need to seek further information from the banks regarding a number of these transactions.


Investor Capital Return and Interest89%

Company Expenses1%

Persons of Interest3%

Unknown7%

Forex Accounts1%

3. Update on the LiquidationsPreliminary use of Funds – 2014 to 2017 (subject to change)

$209 million


3. Update on the LiquidationsAssets Secured

Asset AU$

NAB Account (CHL - Brexit) 28,999,978.00

Westpac Account (CHCTG) 21,016,511.51

Forex Accounts (CHCTG) 1,306,155.09

Other 690.60

Total Assets 51,323,335.20

• No funds overseas located. Signed statement from Tony Iervasi.

• Liquidators have contacted all major banks in Australia (10+) and Forex trading platforms/ brokerage houses (25+).



Other Assets – Insurance Policies

• The Liquidators have issued correspondence to the Companies insurer notifying them of the circumstances of their appointment and taken the necessary steps to preserve their rights under certain insurance policies.

• Due to the nature of these policies the Liquidators are unable to comment any further at this stage so not to prejudice any claim that they are able to make under the policies.

FX trading

• The Companies undertook minimal trading. Most of the former FX traders we interviewed have advised that they only ever traded c.$50,000 at any one time, which is significantly less than 1% of the funds under management.

• The November 16 (US Election) and January 17 (US Inauguration) funds were never traded.


3. Actions undertaken to dateDirectors Report as to Affairs – Tony Iervasi

Category CHCTG (AU$) CHL (AU$)

Sundry Debtors 580,000 Nil

Cash at Bank 50,000,000 Nil

Plant and Equipment 5,000 Nil

Other Assets 1,600,000 Nil

Total Assets 52,185,000 Nil

Assets subject to charges (Motor Vehicles) 150,000 Nil

Amount owing under charges (Motor Vehicles) (100,000) Nil

Unsecured Creditors (198,000,000) Nil

Deficit (145,765,000) N/A

• Despite the Liquidators' requests pursuant to the Corporations Act 2001, the other recorded director based on ASIC filings of CHCTG, Mr David Sipina, has failed to submit a RATA to the Liquidators. Mr Sipina denies he was a director.



• Mr Tony Iervasi

• Mr Athan Papoulias

• Mr Anshul Gupta

• FX traders of the Companies

• However, to date, Mr David Sipina has declined to be interviewed.

Interviews conducted to date



• Liquidators Public Examinations planned to gather further evidence.

• This will determine what legal proceedings are commenced by the Liquidators to recover assets for the benefit of the investors.

• The Liquidators do not get involved in criminal prosecution. This is done by ASIC and the Crown Prosecutor.

• ASIC freezing orders on Mr Tony Iervsi, Mr Athan Papoulias and Mr David Sipina - 4 September 2017. Extension will be sought.

• The Liquidators are aware that the former matrimonial home of Mr Tony Iervasi was sold recently as part of a family law settlement and the net proceeds paid to his ex wife.

Legal Actions


3. Update on the LiquidationsBrexit

• Expect Brexit funds position to be resolved in not less than 3 months starting with an application to the Court within the next 3 weeks to start the process to resolve the treatment of the Brexit funds.

• Liquidators have made a decision to expedite the matter and deal with it separately although this was add extra cost.

• A Brexit investor is seeking to commence legal action against the Companies. The investor will need leave of the court which has not yet been granted.

• Two scenarios:

1. Funds not held on trust and are part of a general pool to be shared by all creditors; or

2. Funds held on trust and to be repaid back to original investors less costs of the process

• Investors will be provided with separate notice in writing on this process in due course.


3. Update on the LiquidationsLiquidators' remuneration

• The Liquidators' remuneration is charged on a time cost basis.

• To ensure the costs of the Liquidation are kept as low as possible, the appropriate level of staff are responsible for certain work streams.

• The Liquidators' remuneration is approved by either creditors, the Committee of Inspection (if one is appointed) or the Court.

• A full detailed remuneration report will be issued prior to the Liquidators seeking approval of their remuneration which will be drawn from the available assets of the Companies appropriately.


3. Update on the LiquidationsTimeframe and updates

• It is unlikely that a dividend will be paid to the general body of creditors (Swing/Elite etc) for at least 12 months.

• It is the Liquidators' intention to expedite the Brexit matter. However, the Liquidators are subject to the availability of the Court for approval of their proposed distribution model.

• It is the Liquidators' intention to provide creditors with updates when a significant event occurs or a milestone is reached. We will NOT be providing monthly updates as this will only add to the cost of the Liquidation.

• To keep the cost of the Liquidation as low as possible all creditors will be provided with the same information at the same time.


• The Liquidators are unable to provide any tax advice to creditors. Please contact your own accountant.

3. Update on the LiquidationsTax Issues

Australian Mutal Holdings

• The Companies operated a registered investment scheme via Australian Mutual Holdings in the name 'Courtenay House Capital Investment Fund'.

• The scheme was operated and overseen by Halifax.

• The Liquidators have been advised by representatives of Australian Mutual Holdings that the large majority of creditors whose investment was in the registered investment scheme have been contacted by Australian Mutual Holdings. However, should you believe that your holding was in the 'Registered Scheme', please contact Lilly Case at [email protected] or on (02) 9241 7959.


4. Questions


5. Resolutions

Committee of Inspection

• Creditors are advised that a member of the Committee of Inspection:

1. Cannot instruct or direct a Liquidator to undertake a certain course of action but act as a sounding board for all creditors;

2. Is non-remunerated. It is a voluntary position and members will be bound by the terms of a confidentiality agreement; and

3. In breach of the Confidentiality Agreement will be removed from the Committee.

• The ideal number of creditors for the Committee is between 4 and 6 to ensure that it is workable.


6. Closure of Meeting

Key Contacts:

• All creditor notifications/documents: https://www.grantthornton.com.au/en/creditors-information/creditors-information-a-f/courtenay-house-capital-trading-group-pty-ltd-in-liquidation/

• Email: [email protected]

• Phone: (02) 8297 2698

• Fax: (02) 9299 4533

• Regulatory Guides on Insolvency: http://asic.gov.au/regulatory-resources/insolvency/insolvency-for-creditors/creditors-liquidation/

© 2017 Grant Thornton Australia Ltd | | 31 July 2017

Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389

‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.

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