Wednesday, December 8, 2010
Shawn Richard of Astarra enters a guilty plea
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.
The content contained in this blog represents the opinions of Mr. Hempton. You should assume Mr. Hempton and his affiliates have positions in the securities discussed in this blog, and such beneficial ownership can create a conflict of interest regarding the objectivity of this blog. Statements in the blog are not guarantees of future performance and are subject to certain risks, uncertainties and other factors. Certain information in this blog concerning economic trends and performance is based on or derived from information provided by third-party sources. Mr. Hempton does not guarantee the accuracy of such information and has not independently verified the accuracy or completeness of such information or the assumptions on which such information is based. Such information may change after it is posted and Mr. Hempton is not obligated to, and may not, update it. The commentary in this blog in no way constitutes a solicitation of business, an offer of a security or a solicitation to purchase a security, or investment advice. In fact, it should not be relied upon in making investment decisions, ever. It is intended solely for the entertainment of the reader, and the author. In particular this blog is not directed for investment purposes at US Persons.