Shawn Richard of Astarra enters a guilty plea
Just over a year ago I wrote a letter to regulators detailing a fraud at an Australian fund manager (Astarra/Trio Capital). This was the Bernie Madoff of Australia. (This required no special genius on my part. I was tipped off by a blog reader.)
The regulator closed Astarra within a month. I have no complaints.
I wrote up part of my thinking for this blog.
But until recently no charges were laid and I was getting increasingly frustrated. I even wrote a (slightly) complaining letter to ASIC (the Australian regulator) only yesterday.
But the Australian regulator rocks! Shawn Richard (the principal malefactor) was charged - entered a guilty plea and will go to prison (probably for five years).
I want to acknowledge the press. The Sydney Morning Herald has kept the story alive with accurate and hard-hitting reporting. The (financial) decline of newspapers is not a good thing.
ASIC has set a standard for the SEC to emulate.
Prosecutions are important. Many thousands of people have lost their life savings in this mess. A strong regulatory response will reduce the chance of repeat problems.
John