The administrator of dealer group Wright Global Investments (WGI) intends to investigate a number of unexplained fund transfers totalling close to $300,000 that have been linked to the group's former chief executive.
Peter Ngan of Ngan & Co has queried the transfer of $285,000 from the WGI company bank account to accounts linked to the company's former chief, Mark Schroeder.
According to Ngan's report to creditors, dated 14 September, the amount was transferred in part-payments between 16 March and 28 May this year into three separate accounts: Chameleon Consulting, Mark Schroeder and Schroeder Capital.
The report said the transfers were not authorised by Schroeder but by a former WGI financial adviser.
Ngan said he was seeking legal advice in respect to a deed of agreement created between WGI and Schroeder in June.
The deed of agreement and release, dated 30 July, purported to release Schroeder from claims made by the company, the report said.
Ngan said he believed WGI should never have entered into such a deed.
The report stated that further payments of $340,000, authorised by the same former WGI adviser, believed to have been transferred into Westpac and St George Banking accounts did not end up in either those or any WGI¬-related accounts.
"I also consider there are other payments, which have been paid in a similar fashion but will require further investigations to determine the nature of those payments to Mr Schroeder and parities related to him," the report said.
"Should the company be wound up I will progress the investigations with a view to recovering the amounts transferred from the company's bank account."
Ngan's report also highlighted concerns around discrepancies in the financials of WGI's assets, mainly two client books - Professional Alliance Group (PAG) and London Partners.
He said WGI advanced PAG $1 million by way of a loan pursuant to an agreement dated 1 December 2008, which amount PAG defaulted on and the company had never recovered its loan.
"I am presently not in the position to precisely state where the client books, which the company purchased or acquired from either PAG or London Partners, currently resides," the report said.
Investigations indicate the beneficiaries of the assets may be linked to up to seven individuals or companies, including Ipraxis, Varker Nominees, Beulah Capital, Schroeder Capital, Mark Schroeder, Mornington Financial Planning Group and Jillian Lees.
"I have located certain payments, which are referable to the sale of part of the company's client list, but I am not satisfied the company received any sale proceeds for the majority of its client list, which has either been sold or transmitted from the company," the report said.
Ngan said prior to his appointment, former directors of WGI had been in discussions with a third party over the possibility of injecting funds into the business.
"I am also aware that the former director, Peter Wood, considered a management buyout of the company's business prior to my appointment. When these alternatives did not proceed, [Graham] Kinder informed me he then thought it appropriate to appoint an administrator," the report said.
The report also questioned whether a number of former WGI directors had operated the company while nearing insolvency or while insolvent during the past three financial years.
