any news here?, page-4

Mercorella debt could now be as much as $66m
By CAMERON ENGLAND
01oct05
INVESTIGATORS trying to trace up to $66 million allegedly owed to investors by Giuseppe Mercorella say the paper trail leads overseas, and point to gambling and share market losses.

The Australian Securities and Investments Commission (ASIC) has alleged that over the past three years, the Mercorella Investment Scheme received loans totalling about $236 million by offering investors interest rates of between 3 per cent and 6 per cent per month.

It has alleged at least $56 million of this money belongs to mostly South Australian investors owed between $50,000 and $8 million each.

But a report released yesterday by the scheme's receiver and manager, McGrathNicol and Partners, says the outstanding amount is about $66 million and counting.

A creditors' update from McGrathNicol partner Sam Davies said: "Mr Mercorella has also advised . . . that he has destroyed or otherwise disposed of a large number of documents relevant to the activities of the scheme and his personal dealing."

"Based on my investigations, Mr Mercorella appears to have used monies advanced to the scheme and made investments in shares, properties, motor vehicles and private businesses which are held in his own name or in private company names that are owned or controlled by Mr Mercorella and in some cases other individuals."

Assets alleged to be involved include real estate in North Adelaide, Kensington Gardens and Woodville Park, as well as Point Piper, New South Wales.

"My investigations have also indicated Mr Mercorella may be holding assets overseas, possibly in the United States, United Kingdom, Indonesia, Hong Kong, New Zealand and Vanuatu," Mr Davies states.

He goes on to say Mr Mercorella's co-operation had "waned significantly" since his appointment, and he had at times refused to answer questions "particularly in his share trading activities and gambling activities".

"My investigations indicate that Mr Mercorella has been an unsuccessful shares trader and has gambled away some monies advanced to him. I continue to investigate the extent of these losses," he said.

Meanwhile, 10 companies associated with Mr Mercorella were yesterday wound up in connection with the scheme.