A multimillion-dollar yacht owned by Ron Pattenden, the founding father of a funeral fund that collapsed owing hundreds of thousands in unpaid insurance policies to hundreds of low-income Aboriginal households, has sailed to tax haven Vanuatu, as questions escalate over his involvement within the firm from which he obtained $20m in tax-free earnings over a decade.
On Saturday Pattenden’s yacht, Dream Catcher, was moored at a pier outdoors the Blue Marlin fishing lodge, which he previously owned, in Vanuatu’s capital, Port Vila. The yacht had made a five-day journey from New Zealand, the place Pattenden has been residing and owns a property portfolio.
Guardian Australia has sought to verify whether or not Pattenden is in Vanuatu and intends to take up residency there, and has submitted detailed inquiries to Pattenden by way of his Vanuatu authorized representatives about points raised by the fund’s liquidator.
Pattenden’s Vanuatu lawyer, John Malcolm, declined to reply when requested to verify if Pattenden was on the island.
Malcolm mentioned his shopper “respectfully declined” Guardian Australia’s request for solutions to a collection of detailed questions on Pattenden’s involvement over many years with the corporate. He mentioned Pattenden “doesn’t need an interview, formal or casual”.
What's ACBF/YouplaFast Information
What's ACBF/Youpla?
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Youpla, previously often called Aboriginal Group Profit Fund, collapsed in March.
In his report back to collectors filed with the Australian Securities and Investments Fee final month, liquidator, David Stimpson of SV Companions mentioned he meant to inform the company regulator of potential breaches of the regulation by former administrators.
Stimpson mentioned within the report in June that he was investigating whether or not greater than $40m paid to firms related to Pattenden and different unknown recipients might be clawed again.
“There are attainable authorized actions to take in opposition to former administrators, nevertheless, the quantity and probabilities of success is at the moment unsure. I might be in search of funding and/or help to pursue these claims,” Stimpson mentioned.
He declined to touch upon the Dream Catcher’s transfer to Vanuatu.
“Investigations into Mr Pattenden and his associated entities are ongoing, together with liaising with the suitable authorities our bodies to help,” he instructed Guardian Australia.
Pattenden lately bought a 4,400ha property in New Zealand’s Bay of Islands for greater than NZ$5m. He owns property in Vanuatu together with a home and land that locals say he plans to develop right into a tourism enterprise.
Pattenden has obtained greater than $20m, tax free, from Youpla, previously often called Aboriginal Group Profit Fund or ACBF, by firms he controls in Vanuatu.
In his report back to collectors, Stimpson mentioned his preliminary investigations indicated that numerous administrators of Youpla could have dedicated offences, together with utilizing their positions to achieve benefit on the expense of the corporate and failing to behave in good religion.
Misuse of place is against the law that may end up in as much as 15 years in jail.
Stimpson mentioned he would offer an in depth report back to Asic and the NSW Workplace of Truthful Buying and selling, which has oversight of funeral funds, on virtually $20m in “purported dividends” he has uncovered as having been paid by ACBF-Youpla to recipients together with Pattenden’s Vanuatu firms.
These transactions embody $750,000 paid between 3 December 2018 and 4 February 2020 to Blue Marlin Lodge – the place Dream Catcher was anchored on the weekend. Pattenden bought the lodge in late 2019.
The NSW OFT mentioned it had not but obtained such a report.
ACBF-Youpla focused Indigenous folks utilizing advertising supplies within the distinctive crimson, black and yellow colors of the Aboriginal flag, together with stuffed toys and colouring books for kids, and by conducting door-to-door gross sales.
Guardian Australia beforehand reported that the corporate had data of not less than one salesperson’s aggressive techniques, with administration notified by e-mail of an allegation that the salesperson used racist slurs when describing Aboriginal purchasers, and allegedly telling a colleague: “We aren’t right here to indicate them respect or dignity. We're right here to get cash from them”.
At its peak, ACBF-Youpla had about 25,000 members. Knowledge launched final week confirmed that in some communities, about 30% of individuals, together with kids and infants, had been signed as much as the fund. The worst affected was the north Queensland city of Yarrabah, the place 786 folks have been left dealing with the lack of every little thing they'd paid into the fund.
Yarrabah Aboriginal shire council mayor, Ross Andrews, known as it a “huge betrayal” of his group.
The collapse has additionally left not less than 31 households with out the cash wanted to bury family members. The Save Sorry Enterprise Coalition of shopper teams, representing hundreds of affected policyholders, estimates that these 31 households are owed $236,089 in unpaid funeral entitlements, amid stories that households are crowdfunding and gathering cans to pay for burials.
Pattenden’s affiliation with Vanuatu started within the early 2000s, after ACBF’s insurer, French group Axa, instructed the corporate it now not wished to proceed the connection, due partially to “the extent of ongoing complaints” Asic had obtained concerning ACBF.
To exchange Axa, Pattenden in 2002 arrange his personal insurance coverage firm, Crown Insurance coverage Providers, in Vanuatu, the place capital necessities had been decrease than Australia.
In March 2010, he launched into a fancy restructuring of his enterprise empire that resulted in possession of ACBF and Crown transferring from him personally to a different Vanuatu firm, Simply Options.
The impact was to rework the streams of dividends from ACBF and the income from Crown’s insurance coverage premiums into repayments of a mortgage, rendering them free from tax. Because of this, over the last decade between 2010 and 2020, Pattenden obtained virtually $21m that finally got here from ACBF prospects, and was capable of legally keep away from paying any tax in NZ, Australia or Vanuatu.
Pattenden additionally owned property in Vanuatu – the Blue Marlin lodge, residences behind the lodge often called Hanson Home, and a pub in Port Vila – all of which he has since bought. Nevertheless, he retains possession of a block of waterfront land in Havannah Bay, which locals say he intends to develop.
The federal authorities has mentioned it was “deeply involved” in regards to the impact the collapse of ACBF-Youpla is having on susceptible Indigenous households and was “dedicated to discovering an answer”.
The finance minister, Stephen Jones, mentioned he has met with members of the Indigenous group and shopper group representatives in far-north Queensland “and guaranteed them that the federal government is conscious of the total scale of this concern and is taking motion.”
Guardian Australia understands a compensation scheme is one possibility into consideration.
“The federal government is actively engaged on potential options to handle this concern and I hope to share extra on these in coming weeks,” Jones mentioned.
The Save Sorry Enterprise Coalition mentioned investigations of Youpla’s former administrators ought to proceed,however a compensation scheme for affected households was important and pressing.
“There are sturdy views from group that First Nations folks affected by Youpla’s collapse ought to obtain pressing compensation from the federal government and that Youpla administrators must be held to account for his or her dangerous conduct,” a spokesperson mentioned.
Asic, which is investigating the position of Pattenden and others concerned with Youpla, declined to remark.
Final week the federal courtroom gave Asic permission to proceed a lawsuit in opposition to ACBF-Youpla alleging deceptive and unconscionable conduct. Permission was required as a result of the corporate is in liquidation.
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