Prime Trust Action Group Unitholder Update No. 4 – 25 March 2011


Since our last update, we have continued to be inundated with registrations for the Action Group and would like to thank everyone for their support and encouragement.  To date, more than 5,200 unitholders have joined the Action Group, representing more than 346m units or 60% of total unitholdings.  


Although the growth in Action Group numbers is particularly pleasing, progress towards recovering unitholders’ funds has been frustratingly slow in recent times.  Since the last update, we can assure unitholders that the Action Group has been very active but there is little information that we are able to release at the moment without potentially prejudicing our collective interests.  Suffice to say that for every particular transaction of the Trust, if we delve deeply enough into it, we continue to find what we believe are major irregularities.  We continue to believe that all of the allegations we are making will see the full light of day and be judged accordingly, and that all parties who are found to have acted improperly will be held accountable for their actions and pursued to the full extent of the law.


We are continuing to make representations to Mr Stirling Horne, from Lawler Draper Dillon (as administrator of the Responsible Entity and Prime Trust) on the issue of unitholders being recognized as contingent creditors of the Trust.  At the unitholder briefings in January 2011, Mr Horne assured all unitholders that they would be recognized as contingent creditors on receipt of appropriate documentation substantiating their claim.  The Action Group has written to Mr Horne no less than four times to follow-up on what documentation will be considered sufficient for this purpose.  Following the first three approaches to Mr Horne, no response (or even acknowledgement) was forthcoming.  Our fourth approach, which we copied to ASIC, resulted in Mr Horne promising a response by 24 March, however that has not occurred.  Needless to say, the Action Group will keep following-up this matter.


We also note that the Prime Trust Action Group provided an extensive list of serious concerns about the Trust, and the alleged mismanagement of the Trust, to Mr Horne on 6 December 2010.  Mr Horne had promised a substantive response by 31 January 2011.  Now, almost two months later, we are still awaiting a response.


On 22 March 2011, representatives of the Prime Trust Action Group travelled to Canberra to meet with Mr Paul Neville, MP, Member for Hinkler and Mr Slade Brockman, Chief of Staff for Senator Mathias Cormann.   A further meeting with Senator Cormann is expected to take place in Perth in the near future.  A brief summary of the meeting is provided in the attached file.  The Action Group was particularly encouraged by the growing awareness in Canberra of the issues surrounding Prime Trust and also the confirmation as to how serious the allegations we have raised are and the need for a thorough investigation to be undertaken by the appropriate authorities.


We would also like to thank all those unitholders who answered the recent call to action and sent complaint letters to their local Federal MP and also to ASIC.  Please note that the several hundred complaints submitted to date is starting to have the desired effect and this was confirmed during our recent visit to Canberra.  For those that are yet to do so, we would urge you to submit your letters as soon as possible and this can be done quite quickly and simply by editing, as appropriate, the attached standard complaint letters. (If anyone experiences difficulty in editing the letters, please send an email to [email protected] and we will prepare and send the letters to you for signing).



We would like to do a further mailout to select larger unitholders who are yet to join the Action Group and would appreciate volunteers to come forward to assist with this exercise.  If you are able to assist in undertaking a mailout to 50 unitholders, please send us an email at [email protected]  We would expect your costs for postage, photocopying etc to be less than $50.


Thank you once again for your support and patience to date and please remember to regularly check our website for further news:



Prime Trust Action Group

25 March 2011