Transaction advisor says he was misled into buying company in $50 million fraud
A transaction advisor has spoken out about buying a company in a $50,000 fraud scheme.
Key points:The former transaction advisor sold his stake in a company with the aim of using it to pay a $1.5 million payment to a Sydney manMr Kynaston told the ABC his business dealings with the man were legal and ethicalBut he said he was “stupid” to trust the person who sold him the company.
“He was selling to someone he knew he was going to buy, and he sold the company to me because he thought I was stupid,” Mr Kynastons said.
He was told his transaction advisor would receive $2 million in commissions.
He said the transaction advisor was offered $500,000 in commission for his “insider information” and “information” about the company’s finances.”
I think I could have done more.”
He said the transaction advisor was offered $500,000 in commission for his “insider information” and “information” about the company’s finances.
He then bought the company, and a NSW business association was put in charge of its day-to-day operations.
“It was a very, very bad idea, and I didn’t think that was appropriate, I didn, and it’s a big one,” Mr Wren said.
“We are in a very dark place right now and I think we need to be very, we need all our hands on the table to help steer that ship.”
Mr Kydaston said he contacted the company through an intermediary to “get their attention” after he learned the person had sold the shares.
He said he knew the company would be bought because he had purchased shares on the exchange, but when he was told the sale was to a person who was not the broker, he was disappointed.
“I was very disappointed, it was a mistake and I thought that was very stupid,” he said.
Mr Wren, who has previously worked in investment banking and financial advisory, said he did not think he was in a position to tell the man to stop trading the shares, but he agreed to do so.
“But it was really hard to get him to stop selling because he was making so much money,” he explained.
“So I just gave him my name and he stopped selling.”
If I had known what was going on, I would have told him to shut up.
“He says he has not done the same with other investors who sold shares in the company he was involved in, but Mr Kydastons is hopeful the situation will be resolved.
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