People may love or loathe Money Managers boss Doug Somers-Edgar, but without him the financial planning industry would be pretty boring in this country.
Those of you who have seen Good Returns this morning will know that Doug has written to the 1800 investors in the failed $21 million Metropolis bond issue and asked them whether they want to consider taking legal action against someone.
Amongst his list are the usual suspects, Andrew Krukzenier, promoters UPC, Trustee Executors and even his own firm Money Managers!
If suggesting taking his own firm to court isn’t enough, the timing of this letter coincidentally comes just a couple of days before the bondholders’ trustee, Trustees Executors (formerly Tower Trust) writes a very similar letter to the Metropolis investor.
“When it comes to Doug Somers-Edgar nothing surprises,” Trustees Executors general manager Glenn Clark says.
With this minor flurry of letters it’s easy to see bondholders rubbing their hands together at the thought of taking someone to court. After all they won’t get any of the interest owed and it seems they will get about 50c of each $1 invested back.
Clearly the most joy would be over either Money Managers and/or Krukzenier ending up in the dock.
However, I think one can boldly predict that neither of these parties will end up in such a position.
Rather the idea of having a meeting signals this whole drama is coming to an end. A meeting is highly unlikely to result in any action (who is going to fund it? Not the trustee, and what was illegal?)
More likely it provides bondholders with a platform to vent their spleen and get a bit of closure.
