Shawn Richard of Astarra enters a guilty plea

Just over a year ago I wrote a letter to regulators detailing a fraud at an Australian fund manager (Astarra/Trio Capital).  This was the Bernie Madoff of Australia.  (This required no special genius on my part.  I was tipped off by a blog reader.)

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.


John