1 00:00:01,400 --> 00:00:03,240 Speaker 1: Togever Do for z Ellen. Right. 2 00:00:03,240 --> 00:00:06,200 Speaker 2: Well, the hotly anticipated receiver's report into the duval Group 3 00:00:06,200 --> 00:00:09,600 Speaker 2: has been released. As expected, it's quite complicated in there 4 00:00:09,800 --> 00:00:12,920 Speaker 2: there were no consolidated accounts, no financial records for the 5 00:00:12,960 --> 00:00:16,360 Speaker 2: Duvile Group companies that never been audited. Rather, and receivers 6 00:00:16,360 --> 00:00:18,680 Speaker 2: have questioned the group's valuation of more than four hundred 7 00:00:18,680 --> 00:00:21,440 Speaker 2: and thirty million dollars. Now Business Desk journalist Maria Slade 8 00:00:21,440 --> 00:00:22,800 Speaker 2: has been looking into this and it is with us 9 00:00:22,800 --> 00:00:26,960 Speaker 2: now how Maria, hello, Okay, Now, the business bought fifteen 10 00:00:27,000 --> 00:00:29,600 Speaker 2: million dollars worth of intellectual property off the couple. That 11 00:00:29,640 --> 00:00:31,880 Speaker 2: sounds like a lot of money just be spending on IP, 12 00:00:32,040 --> 00:00:32,239 Speaker 2: is it. 13 00:00:32,920 --> 00:00:34,559 Speaker 1: Well? This is one of the things that the receivers 14 00:00:34,560 --> 00:00:37,360 Speaker 1: have pointed out is one of the main concerns are 15 00:00:37,400 --> 00:00:41,120 Speaker 1: these related party transactions that have sort of washed about 16 00:00:41,120 --> 00:00:44,199 Speaker 1: this very large group of seventy odd entities. And one 17 00:00:44,200 --> 00:00:46,479 Speaker 1: of the things that they identify was a fifteen million 18 00:00:46,520 --> 00:00:51,040 Speaker 1: dollar intellectual property transaction between the Clark's family trust and 19 00:00:51,080 --> 00:00:53,519 Speaker 1: one of the entities, and it was a loan and 20 00:00:53,560 --> 00:00:56,440 Speaker 1: apparently there's no zero accounting records or anything to show 21 00:00:56,480 --> 00:00:59,960 Speaker 1: where the funds came from the loan is now five million, 22 00:01:00,600 --> 00:01:02,560 Speaker 1: but with that other ten million dollars go and what 23 00:01:02,680 --> 00:01:05,759 Speaker 1: was it for? Nobody knows, So that that's an indication 24 00:01:05,920 --> 00:01:08,040 Speaker 1: of the kinds of transactions they're very concerned about. 25 00:01:08,319 --> 00:01:10,320 Speaker 2: What about the valuation of the company. Was this just 26 00:01:10,319 --> 00:01:12,920 Speaker 2: something they made up? Where did they have evidence to back? 27 00:01:13,120 --> 00:01:15,520 Speaker 1: This came out a while ago, actually, so they wanted 28 00:01:15,560 --> 00:01:19,360 Speaker 1: to do a public listing, a float on the stock exchange, supposedly, 29 00:01:19,680 --> 00:01:22,360 Speaker 1: and so they produced an information memorandum, which is what 30 00:01:22,360 --> 00:01:24,040 Speaker 1: you're supposed to do if you're going to do something 31 00:01:24,120 --> 00:01:26,640 Speaker 1: like this, and they put this valuation of four hundred 32 00:01:26,680 --> 00:01:30,199 Speaker 1: and thirty one million, a top end valuation on the group. 33 00:01:30,360 --> 00:01:33,440 Speaker 1: But that was their own finger in the wind valuation. 34 00:01:33,800 --> 00:01:38,559 Speaker 1: There was no independent valuation, so who would know whether 35 00:01:38,600 --> 00:01:41,520 Speaker 1: that had any validity because it wasn't based on a lot. 36 00:01:41,600 --> 00:01:43,479 Speaker 2: So was it a hot mess in there? Well? 37 00:01:43,600 --> 00:01:47,480 Speaker 1: The receiver, John Fisk, described it as a bowl of spaghetti, 38 00:01:47,960 --> 00:01:50,760 Speaker 1: And you certainly start to get that sense when you 39 00:01:50,800 --> 00:01:53,240 Speaker 1: look into things like, for example, one of the developments, 40 00:01:53,560 --> 00:01:57,120 Speaker 1: the proposed Edmonton muse out in Henderson, nice little strip 41 00:01:57,120 --> 00:01:59,440 Speaker 1: of land overlooking the two Eeglyn reserve. I might add, 42 00:01:59,520 --> 00:02:03,560 Speaker 1: nice spot, but that probably had four mortgages on it, 43 00:02:03,640 --> 00:02:07,560 Speaker 1: no less, and the investors were the third or the 44 00:02:07,600 --> 00:02:11,560 Speaker 1: fourth in the rankings. And one of those mortgages was 45 00:02:11,600 --> 00:02:14,079 Speaker 1: to one of their other developments. So one of their 46 00:02:14,120 --> 00:02:16,440 Speaker 1: other entities mortgaged their own entity. 47 00:02:17,000 --> 00:02:19,240 Speaker 2: Okay, John Fisker's got a job on his hands. 48 00:02:19,240 --> 00:02:23,000 Speaker 1: He certainly does. And as you identify all the accounting problems, 49 00:02:23,040 --> 00:02:26,040 Speaker 1: they never did consolidated accounts, so that's when you look 50 00:02:26,040 --> 00:02:28,400 Speaker 1: at the whole group together, never done. None of the 51 00:02:28,400 --> 00:02:31,359 Speaker 1: accounts were audited. I mean, you know, anyone knows. That's 52 00:02:31,360 --> 00:02:33,640 Speaker 1: just kind of basic. You've got to have ordited accounts. 53 00:02:34,120 --> 00:02:38,519 Speaker 1: And the significant number of related party advances including transactions, 54 00:02:38,520 --> 00:02:40,720 Speaker 1: they said that didn't appear to have anything to do 55 00:02:40,800 --> 00:02:44,440 Speaker 1: with the actual operating purpose of the entity that advanced 56 00:02:44,440 --> 00:02:45,000 Speaker 1: the funds. 57 00:02:45,320 --> 00:02:46,720 Speaker 2: Well, Maria, I'm sure you're going to see a lot 58 00:02:46,800 --> 00:02:48,000 Speaker 2: and there. Thank you so much for your time. I 59 00:02:48,040 --> 00:02:51,720 Speaker 2: really appreciate is Maria Slade, journalist from Business Desk. For 60 00:02:51,840 --> 00:02:55,440 Speaker 2: more from Heather Duplessy Allen Drive, listen live to news talks. 61 00:02:55,440 --> 00:02:58,640 Speaker 1: They'd be from four pm weekdays, or follow the podcast 62 00:02:58,720 --> 00:02:59,760 Speaker 1: on iHeartRadio.