Roaring Forties Saga 1/2 Million USD Gone - Final Report?

Ron Earp

Admin
Dear Members,

This is a little belated but better late than never. This is the latest Creditor Report from CJL Partners, dated 9-19-06. As mentioned it should be read in conjunction with the report dated April 13th 2006 which I've also attached, along with some of the other ones that I have.

To make a long story short, this latest report basically details where some of the deposits went and it was unfortunately not all to CAMCO in SA (maybe unfortunate, hard to say based on some other things mentioned about CAMCO). Monies went to various places where Robert Logan decreed, essentially to try and put out one fire after another while the producing company seemed to receive no working capital. Interestingly enough, some of the rumors like chassis' leaving the company illegally after bankruptcy were true, as well as that incomprehensible story about the black GT40 and money from the US that went to pay for it.

It also seems as if CAMCO is of interest here too, so they must have some information that doesn't sit well with the administrators. There are details of the US account run by Hershal Byrd and where monies from that account went at Robert's direction. Legal costs from the old Levy lawsuit were paid off, some was sent to RF, some for the black GT40, and some to CAMCO as well as other places lists. Bottom line is the deposits didn't go where the customers thought they were going and were directed by RF Australia, specifically Robert Logan.

Looks like there is little chance of getting money back. The administrators indicate some legal action could be pursued against Logan, but it'd be at a cost to the affected parties. Throwing good money after bad is probably not the best way forward.

Elizabeth Michael's sent the following comments:


1. Insolvent Trading Claims - The liquidator does not believe that Mr
Logan has much in the way of personal assets so there would be
little point suing him for recovery of debts owned by the
company. Note that the liquidator would consider pursuing
insolvent trading claims against Logan if the creditors were
prepared to provide an indemnity for costs.

2. Breaches of Corporations Law - The liquidator has made a
preliminary report to ASIC (our governing regulatory body for
companies in Australia) regarding Mr Logan. A further report has
been requested by ASIC. The decision by ASIC to press charges is
one entirely made by ASIC and in my experience it could take up to
12 more months for them to decide to proceed.

And that is about all I have. I don't imagine we'll hear anything else, but I might be completely wrong on that.

Ron

PS-Latest noticeis the top one, 9-19-06 in the list just below.
 

Attachments

Re: Roaring Forties Saga - Final Report?

Has Hershal been exonerated of any wrongdoing? I hope so. His wife is an accountant and I suspect his books are in excellent order. Nonetheless, I've heard that he and his name have been dragged through the mud in this whole mess, and that he has had legal action against him as well. I don't think Hershal was given a a fair shake in this deal from certain of the "RF Mates", and I'd like to see his name cleared.
 

Ron Earp

Admin
Re: Roaring Forties Saga - Final Report?

Hi Mark,

I do not know as I'm not privy to information on details on personal lawsuits. As I understand it from talking with Hershal, the administrators, and reading the reports, Hershal did what Robert told him to do with the various funds. Therefore, it would stand to reason it is not Hershal's fault for the situation that RF was driven into. Beyond that, with respect to US situations, I will not speculate.

I think it is difficult to define fair shake with any of the RF Mates you are referring to. I can see where some affected customers have a very different impression of events than I do since some of them submitted deposits just months before the collapse. And certainly the affected folks have a vastly different impression of events than a person who lost no money at all in the entire fiasco.

At any rate, I am not defending actions I don't know about. I just wish to point out the situation was very bad for all involved and for those on the sidelines it is impossible to see all the things that affected people go through in these circumstances - on both sides of the deal. I don't think anyone will ever know what really transpired with RF, Robert Logan, Agents, and CAMCO nor really know when it all started to go wrong.

The New RF company is making some progress and plan to offer cars worldwide when they are able. I imagine we'll see the new owners and other associated parties when they are ready for the market.

Ron
 
Wow, Mark and Ron.
Sorry to hear about RF. I haven't been here for some time.
That is black eye for all interested in building cars.
Hope the fall out doesn't wreck it for all the good people here that had ties to those in South Africa.
Those cars have been a dream for me for a long time.
It sucks big. Who are the manufacturers you feel have the best business right now?
I don't like to see good people getting screwed. Not all of us have the big bucks to take a hit like some did.
Steve
 
Steve
There are a lot of good, reputable manufacturers today. They include ERA, RCR, Tornado, DRB, Southern GT, and MDA. I apologize if I left anyone out.
 
Steve, I will mention that Roaring Forties is now running and running with a totally new owner/management crew.
Several people have bought new chassis and bodies and parts and components here in Oz and they seem happy with the new company. Maybe they could fill you in more detail.
Cheers,
Jonathan.
 
I know nothing about the RF40 (old) events, but if anyone is expecting some positive or useful action by ASIC here, I'd say don't rely on it. I was involved with an investment problem where a number of us lost all our savings, and the principals involved in "managing" our investments lost $20million of our money. ASIC was absolutely useless, and has proved to be in other cases also, not even pursuing the apparently guilty parties.

Dalton
 

Ron Earp

Admin
Hi Dalton,

I understand that ASIC was of no use here either. They decided not to pursue action against Robert Logan and I understand he now has a teaching position at a local college with all assets in place. As far as I'm aware none of the affected parties were ever successful in reclaiming any of the lost money from him or the old defunct RF company.

I heard the old RF/CAMCO chassis in SA were bought (many different buyers depending on story source) but where they will turn up I do not know. But I'm sure they are out there somewhere.

I know I learned an expensive lesson as did many other customers and dealers.

Ron
 
It looks like they finally are going to settle with non secured creditors. I got a letter today stating they were going to declare the final dividend to creditors next month and that I needed to complete a Proof of Debt or Claim by April 2.
 
I'm planning a trip to aussie land later this year (2008). I'd appreciate any info on where I might find robert logan. Perhaps I can have a friendly chat with him.

If you're reluctant to post publicly, feel free to PM me any info you might have. I can assure you of your privacy.

MD
 
I'm planning a trip to aussie land later this year (2008). I'd appreciate any info on where I might find Robert Logan. Perhaps I can have a friendly chat with him.
MD
Message to Robert Logan - avoid dark alleyways for the foreseeable future.............
 
Ah, yes, Ross. Some kneecap therapy or perhaps a little chin music would be tasty. However, I prefer to do things in a legal manner.

It is my contention that Robert Logan is personally liable for the losses suffered by us non-secured creditors. It is clear to me that he blurred the line between company and personal activities with respect to RF and therefore I (and others) can go after him personally.

Noone has yet to offer up any information as to his whereabouts. I find this disappointing. Surely someone must have some bit of info. As we saw when the whole RF saga began to unravel, there are ALWAYS some folks with valuable info. It's just a matter of getting them to step forward.

Mitch
 

Ron Earp

Admin
Noone has yet to offer up any information as to his whereabouts. I find this disappointing. Surely someone must have some bit of info. As we saw when the whole RF saga began to unravel, there are ALWAYS some folks with valuable info. It's just a matter of getting them to step forward.

Mitch
Not quite true there. His whereabouts are not that hard to find - I hear he is teaching at a community type college and more information can be had. However, unless you are really going to pursue him I don't know if it'd be that useful. The equivalent of the SEC decided he was "innocent" and didn't pursue him for wrongdoing so I'd assume that decision must reflect a bit of the law structure in Australia. Maybe he could be sued in the US, but as I understand that would just be a judgment for you in the US and would mean nothing to him.

Complicated mess.

Ron
 
Actually, because the the trade agreements and law treaties between the US and Australia, a US judgement against an Australian company or individual can be exicuted in Australia.
 

Ron Earp

Admin
Actually, because the the trade agreements and law treaties between the US and Australia, a US judgement against an Australian company or individual can be exicuted in Australia.
I understood that to be true when the individual or company with a US agent, company, or presence. However, RL has none of these things now, although he did at the time the event occurred.

I'm not a lawyer nor do I play one on TV. But a friend of mine I highly respect is an attorney and he advised me I'd be pissing into the wind for the most part. Your mileage might vary I'm sure, but I for one am letting that dog sleep - on the legal front that is.
 
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