Firepower advisors targeted by litigation funder

[Wayne1966]

Firepower advisors targeted by litigation funder
http://www.abc.net.au/news/stories/2009/06/03/2588212.htm

A Perth-based litigation funder has launched legal action to recover millions of dollars lost in the failed fuel technology company Firepower.

IMF represents 79 investors and hopes to recover $40 million.

More than 1,200 shareholders natiowide are believed to have sunk up to $100 million into Firepower, which promoted a fuel additive designed to reduce vehicle emissions.

IMF says it will be targeting lawyers, advisers and share sellers who recommended Firepower shares.

The company's Managing Director, Hugh McLernon, says his firm will allege Firepower handled its money inappropriately.

"The shares were in a company which had no assets, no business, no prospects," he said.

"[The company] was supposedly about to be listed, but couldn't possibly have been listed."

The first case is seeking $5 million from lawyer and former West Australian police minister, Gordon Hill, for breach of trust in relation to 88 transactions handled by his now-defunct law firm.

Mr Hill could not be contacted for comment.

[The Perp]

Peter needs to get David Penberthy around for dinner again for a strategy session on keeping Peter's name out of another bad news story. It's worked every other time.

[Wolfy]

Some 'moneybags' is really going to need Mummy's help to keep his name out of this one.

[Randy Neuman]

Your Honour, I did do due diligence. I read it in my stars. It said if something is too good to be true grab it with both arms and fuck anyone who will be burnt by the process.

[The Perp]

While Russell Crowe was appearing on the Jay Leno Show in the US to lavish praise on Firepower, Holmes a Court issued a Press Release on SSFC stationary on 9 November 2006:

"Two of the biggest issues in the world today are harmful fuel emissions and rising fuel prices," Peter Holmes a Court said.

"Firepower is an international company with its headquarters in Australia that has developed the technology to tackle all of these issues head on.

"As we speak, Firepower's fuel technology is helping leading industries around the globe to enhance automotive performance, improve fuel economy, lower maintenance costs and increase equipment life - culminating in a reduction in environmental impacts.

"Russell and I have been particularly keen to take the club forward in a socially responsible fashion and Firepower certainly fulfils that criteria.

"Firepower is an Australian success story - operating in over 50 countries globally and currently expanding rapidly into new markets. Firepower is an emerging brand that is already a global leader in its category.

"Like Souths, Firepower is prepared to roll its sleeves up and invest in the future - we welcome their support."

Firepower is the largest fraud in Australian history, yet magnate Holmes a Court and Oscar-winner Russell Crowe, sucked in thousands of new investors by spruiking it as a "global leader". Every word from Russell and Peter about Firepower was bullshit. Every single word.

Russell and Peter deserve to be sued. They recommended Firepower shares. And wealthy businessmen who recommended Firepower are precisely who the lawyers are targeting.

Let's hope Russell and Peter don't take the football club down with them.

[The Redfern Ranger]

Now that's what I call due diligence!

What a complete and utter PHaCwit! Most people on here screamed "pump and dump" (I know I did), while our fearless leader continued to trumpet Firepower. I can only deduce that he knew more than we did. Could you sleep at night if you sang the praises of this dog of an investment? Me, I wouldn't be able to show my ugly face, let alone turn up to a room full after a dodgy feed and sing my own praises..

[The Redfern Ranger]

This is not the last we will here of this. I am amazed that Mr Teflon has avoided it for this long.

[The Redfern Ranger]

"Russell and I have been particularly keen to take the club forward in a socially responsible fashion and Firepower certainly fulfils that criteria."

PMSL! Oh the irony of it all.

[The Perp]

When Firepower was on the way under, PHaC boasted in newspapers that Firepower paid all their dues to the club, which was millions of dollars. So we can be certain that the recovery lawyers will come after the football club for precisely that amount.

I'm sure PHaC will be questioned about how he tried to bully the journalist, Gerard Ryle, into stopping the Firepower con job stories. PHaC complained to Ryle's editor, and later the Fairfax Board, in an effort to stop the poor press for Firepower.

It'll be compulsive viewing when PHaC hits the witness box to explain exactly what his "due diligence" entailed. For example, he'll have to explain why his due diligence didn't uncover that Firepower were using a shonky ASIC company number.

That PHaC dragged Russell into another shit fight - on top of the Palladino & Sutherland bullshit - will not have been lost on him. Little wonder Crowe hates Holmes a Court's guts with a passion.

Not even PHaC's media protectors - Penberthy, Weirdler, Massoud, and Brad Walters - will be able to get him out of this one.

:banana3: PHaC

[Admin]

Firepower investors launch $5m legal bid

3rd June 2009, 6:00 WST
SEAN COWAN
The West Australian

Former WA police minister Gordon Hill has become the first target of investors trying to recover their money from the wreckage of failed fuel technology company Firepower after he was hit with a $5 million lawsuit yesterday.

The Supreme Court writ, filed on behalf of 79 investors by lawyers for litigation funder IMF (Australia), is expected to be the first of several aimed at recovering up to $40 million of the $100 million that mum-and-dad investors ploughed into the firm.

Others expected to be targeted in the coming months include the private companies of wealthy property tycoon Warren Anderson and Sydney lawyer Les Stein, both of whom were heavily involved in Firepower.

IMF is not expected to take on the company’s elusive founder Tim Johnston because he has few assets.

The Hill lawsuit, in which the former Burke Government minister is named as the sole defendant, relates to 88 share sales allegedly handled by his Dunsborough-based law firm Gordon Hill & Associates in 2005.

In the writ, the investors claim they applied for shares in Firepower Holdings Limited — a company registered in the Cayman Islands. It is believed that $3,412,100 was paid into the firm’s trust account for the purchase of 17,060,500 shares.

But when the investors received their shares, often months later, they had been given shares in the British Virgin Islands-registered Firepower Holdings Group Limited. Mr Hill was a director of both Firepower entities at various times.

The investors claim they never agreed to buy shares in the British Virgin Islands company, which had only been incorporated in June 2005.

“In the premises there has been a total failure of consideration and the defendant is obliged to make restitution to each of the plaintiffs in an amount corresponding to that paid to the defendant for the acquisition of shares in Firepower Holdings Limited,” the writ said.

IMF’s lawyers Tottle Partners sent a letter demanding repayment to Mr Hill’s lawyers late last month but received a reply that any legal action would be vigorously defended. They are also seeking interest.

Among the 79 investors named on the writ are former Perth Glory partowner Brett McKeon and other McKeon entities, which invested $280,000. The wife of Quentin Ward, a former bankrupt who arranged for hundreds of small investors to buy Firepower shares, is also among the list of plaintiffs because of a $50,000 investment she made.

Mr Ward’s former office worker Deirdre Clark is seeking $50,000. The other big investor was former West Australian newspaper photographer Don Palmer, who allegedly paid $250,000 to Mr Hill’s firm.

IMF managing director Hugh McLernon said lawyers, accountants and other professionals were supposed to help protect investors.

“We are not a white knight here to put things right,” he said. “We are in it as a business. We will probably look at recovering about $40 million but I would be thinking that we would be battling to do much more than that.”

[The Perp]

Peter Holmes a Court, SMH, 20/01/07:

"I have done due diligence on the company and I am not a trucking or train company but I have spoken to people who are and they like the product." (Impossible. There were no trucking or train companies using the product. It never went on sale.)

Peter Holmes a Court, SMH, 24/10/07:

"We have been fortunate that Firepower met all of their obligations and we are very thankful for their million-dollar-plus support." (You are certainly more fortunate and thankful than the mums-and-dads- investors who lost the millions Firepower gave you, Peter.)

Peter Holmes a Court, Souths Press Release, 9/11/06:
"The Rabbitohs will join a host of high profile sporting Clubs and identities as part of the Firepower family, including the Sydney Kings National Basketball team..." (Your "Firepower Family" has shrunk, Peter.)

Holmes a Court :hug: Firepower (the largest fraud in Australian history)

[Hustler]

What an absolute fraud!

It's disgusting what this company has done, and it's even more disgusting that South Sydney, through HaC, spruiked this dodgy company, helping taking millions off mum and dad investors.

Maybe instead of taking the witness stand, HaC can be left a room for an hour with some of the victims???

I'd pay to watch that!

:winking:

[Wolfy]

Peter Holmes a Court, SMH, 20/01/07:

"I have done due diligence on the company and I am not a trucking or train company but I have spoken to people who are and they like the product."

Trucks and trains run on diesel. Was there ever any mention of a diesel pill? Or did PHaC just flip his little tool out and pull himself on this one as well?