LFP I SICAV - Blackstar Commodities fund a History of Fraud!!

Taken from www.lfp1-sicav.com

Chronology - Pre-New Directors

May 2012: Anuj Ghosh is 25% founder of Blackstar Capital Sarl in Luxembourg, advisor to Blackstar Commodities sub-fund (with 2014- LFP I director Mark Stephens et al.).

February 2012: Blackstar Commodities fund launched with 36 month ramp-up period.

Mar 2012 - Mar 2013: Blackstar Commodities fund invested over $2.1 million into gold trader Rochoet in New York.
Rochoet paid US$ 24k in commissions to Blackstar Capital Partners Sarl, undeclared...

April 2013: Apex Fund Services (Malta) Limited becomes shareholder in Luxembourg Fund Partners SA, under the direction of CSSF, and also provides two directors to AIFM.

Apr 2013: Blackstar Commodities fund invested 230k into sister fund LFP 1 - Saxum Resources Fund.

12 Apr 2013: CSSF writes to directors raising concerns about use of Hong Kong company World Accord Ltd., and why Rochoet New York had cancelled its commodity trading and redeemed in full its investment.

Jun 2013: Blackstar Commodities fund invested US$ 300k into Cayman-based Kijani Commodity Fund.
Kijani paid US$ 21k in commissions to Blackstar Capital Partners Sarl, undeclared...
Suspended by Cayman authorities in June 2015, resulting in total loss to Blackstar Commodites fund.

Sep 2013: YAS Investments, Investment Advisor to Columna Commodities fund, paid US$ 29k in commissions to Blackstar Capital Partners Sarl.

Oct 2013/Mar 2015: World Accord invested US$ 2.16 million into Mir Alliance in UK for a gas oil.
Mir Alliance paid at least US$ 97k in commissions to Blackstar Capital Partners Sarl, undeclared...

6 Nov 2013: Email from Matt Fagan-Curry to prospective investors :-

• "The Blackstar Trade Finance Fund is a Luxembourg SICAV-SIF with a very straightforward investment strategy targeting "non-correlated" returns of beetween 12% and 15% per annum.
• The fund profits from providing short term secured finance to established commodity traders, offering investors liquidity with consistency of return.
• The fund follows a strict lending criteria that is approved by the independent custodian, ABN Amro, on every transaction.
• Funding is only made available:
  • 1. On transactions that can be completed within 14-45 days.
  • 2. Once full security is taken by either title over the commodity, or first charge.
  • 3. On trades that are already established and have an existing track record."

6 Nov 2013: Email from Matt Fagan-Curry to prospective investors :- "The management fees are 2% per annum but the management fees will not be taken until the fund reaches an AUM of £30m." Actual fees charged - 2012 - €13k, 2013 - €35k, 2014 - €64k, 2015 - €137k, 2016 - US$ 132k, 2017 - US$ 44k, and the AUM never surpassed €5.2 million in 2015. Dec 2013: Blackstar Commodities fund redeems investment in sister fund LFP 1 - Saxum Resources Fund before year-end accounts.

17 Mar 2014: World Accord invested US$ 610k into Mexico iron ore deal with Ankaa Commodity.
Investment wired over 7 months in tranches, never a return of capital/profits on short-term financing facility.
Total loss to Blackstar Commodites fund. Loss not reflected until 2016 accounts.

4 Sep 2014: World Accord invested US$ 234k into Mexico copper concentrate deal with Bustillos.
Investment wired directly to Bustillos in Mexico, not Regen that was managing the trade.
Bustillos paid US$ 5k in commissions to Blackstar Capital Partners Sarl, undeclared...
Total and immediate loss to Blackstar Commodites fund. Loss not reflected until 2016 accounts.

Oct 2014: First Namibian-based investor, marketed to by Matt Fagan-Curry, invests € 180,000 at full fund value, despite major losses in Mexico investments representing 25% of Blackstar Commodities' NAV.

2014: Blackstar Commodities fund pays 37k dividends to shareholders, despite concealing 25% loss of NAV.

January 2015: Second Namibian-based investor, marketed to by Matt Fagan-Curry, invests US$ 259,000 at full fund value, despite major losses in Mexico investments representing 25% of Blackstar Commodities' NAV.

June 2015: Third Namibian-based investor, marketed to by Matt Fagan-Curry, invests US$ 537,000 at full fund value, despite major losses in Mexico investments representing 25% of Blackstar Commodities' NAV.

2 July 2015: PWC Luxembourg 2014 audited accounts for LFP 1 released, Blackstar Commodities shows no impairment to value, even though 100% subsidiary World Accord had realised losses of US$ 980k or 25% of NAV and had accrued interest on irrecoverable loans.

17 August 2015: World Accord invested US$ 1 million into Capricorn Commodity in Australia for commodity trading.
Funds were returned and legal fees repaid, but no interest paid to date.

2015: Blackstar Commodities fund pays 54k dividends to shareholders, despite concealing 17% loss of NAV and accruing interest on irrecoverable loans.

Jan 2016/Mar 2017: World Accord invested 300k into Smart Oil in UK for a gas oil.
Mir Alliance paid at least US$ 202k in commissions and fees to Blackstar Capital Partners Sarl.

6 April 2016: World Accord loan invested 400k into Arkistruct, a modular home company in Australia majority owned by McGrath.
The loan defaulted immediately, and after partial return of capital the balance remains as at August 2020 approx. $235k plus interest.

1 March 2016: CSSF write to directors noting that as at 30 September 2014 World Accord Ltd. represented 68.20% of the fund, and as at 30 September 2015 56.70% of the fund, a direct breach of diversification rule 07/309 limiting any one investment to 30% of the fund.
(In fact 7 sub-funds of LFP I were in breach of diversification rules).

15 March 2016: Blackstar Commodities invested into Blackstar Finance Limited in Hong Kong, which on-lent NZ$ 600k to a New Zealand company (Daniel McGrath is CEO).
The loan was repaid 1 year later, no interest paid to date.

28 October 2016: PWC Luxembourg 2015 audited accounts for LFP 1 released, Blackstar Commodities shows no impairment to value except reference to Kijani investment, even though 100% subsidiary World Accord had concealed realised losses of US$ 980k or 17% of NAV and had even accrued interest on irrecoverable loans.

28 October 2016: Matthew Fagan-Curry sends email to shareholders, with a Fact Sheet for September 2016 and table of monthly NAV's for life of the Blackstar Commodities fund - A Pack of Lies.

2016: Blackstar Commodities incurs 20,862 shares redeemed during the year, 43% of all shares outstanding.

20 February 2017: World Accord invested US$ 643k again into Mexico iron ore deal with Ankaa Metals.
Investment wired over 8 months in tranches, never a return of capital/profits on short-term financing facility.
Total loss to Blackstar Commodites fund.

May 2017: The LFP 1 directors suspend the NAV of Blackstar Commodities due to realised losses in World Accord, some carried forward from 2014 ($ 980k, 25% of Blackstar NAV), and from 2016 ($1.1 million, 31% of Blackstar NAV).

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25 July 2017: PWC Luxembourg 2016 audited accounts for LFP 1 released, Blackstar Commodities shows only impairment to value of Kijani investment, even though 100% subsidiary World Accord had concealed realised losses of US$ 2.1 million or 60% of NAV and had even accrued interest on irrecoverable loans.

May 2018: Intel Suisse's Mapley pressured Alter Domus Management Company with questioning about past conflicts and failings.

September 2018: Under pressure, all directors of LFP 1 resign, including Blackstar's Mark Stephens, calling an EGM with intent on a judicial liquidation.

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Chronology - Under New Directors

17 September 2018: Mapley and Fedeles were elected by shareholders of LFP I with a mandate of recovery of assets and monies and to render the LFP I operational. This appointment took effect after CSSF approval of their role as directors.

23 November 2018: Tudor Fedeles is approved by the CCSF to act as a director of LFP 1.

7 December 2018: Director Mapley is approved by the CCSF to act as a director of LFP 1.
Christopher Sinclair and Alter Domus appointee Jonathan Lepage resigned as directors, with immediate effect.

7 December 2018: European Fund Administration S.A. resigned as administrator, registrar/transfer agent and domiciliation agent to LFP 1, with 3 months notice.

11 December 2018: PWC Luxembourg resigned as auditor to LFP 1.

12 December 2018: KBL resigned as custodian and depository bank to LFP 1, with notice up to 31 March 2019.

13 December 2018: Alter Domus Management Company S.A. resigned as AIFM to LFP 1, with 3 months notice.

14 December 2018: LFP 1 EGM of shareholders for all fund compartments, resolved to trigger the liability of the directors in Columna Commodities re investments made in 2013/14. Independent Director Jacque Bossuyt is confirmed as a director.

21 December 2018: LFP 1 filed a civil complaint against Alter Domus Management Co. for recovery of LFP I documents, AIFM procedures etc..

9 January 2019: LFP 1 appointed Mapley and Fedeles as directors of World Accord Ltd., in Hong Kong. Directors Stephens and McGrath are suspended with immediate effect.

31 January 2019: World Accord EGM of shareholders removed Stephens and McGrath as directors.

8 February 2019 LFP 1 EGM of Blackstar shareholders resolved to trigger the liability of the directors re. Blackstar Commodities concerning investments made, and to place the fund into liquidation with Mapley and Fedeles the liquidators.
Blackstar Capital Partners, the invited Investment Advisor, decline to attend and brief the EGM as to its recent activities.

26 February 2019 LFP 1 AGM of shareholders for all fund compartments, the Annual accounts as prepared by PWC Luxembourg were rejected by shareholder due inaccuracies re bank balances that had simple been carried forward and not updated.

May 2019 Former director and investment advisor Mark Stephens confirms, in a phone conversation with director Fedeles, that he controls 75,000 tonnes of iron ore of Blackstar Commodities fund in Mexico, worth approx. US$ 7 million at current market prices.

4 June 2019 Former director and investment advisor Mark Stephens confirms, through his legal counsel, that he controls 75,000 tonnes of iron ore of Blackstar Commodities fund in Mexico, worth approx. US$ 7 million at current market prices.

2 January 2020: LFP I files a civil complaint against former directors Mark Stephens, Luc Leleux, and Julien Renaux for total losses of US$ 53,925,000.

3 December 2020: LFP I files a mismanagement claim against Alter Domus Management Company SA re Blackstar Commodities.

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Legal Actions

The directors have instigated the following civil actions resulting from their fraud investigations and the regulatory/service provider failings of the Blackstar Commodities Fund. No reference can be made to any criminal complaints or money laundering complaints, as per regulations and prevailing laws :-

Civil Suits

(21/12/18) LFP I vs Alter Domus Management Co. - recovery of documents, 500,000
(2/1/20) LFP I vs former directors Mark Stephens, Luc Leleux and Julien Renaux for US$ 53,365,000 of losses
(3/12/20) LFP I vs Alter Domus Management Co. - losses due to mismanagement, US$ 4,933,412.92 and 972,440

Judgements

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Press Coverage

The following articles are some of the press coverage concerning the fraud investigations and regulatory/service provider failings of the Blackstar Commodities Fund :-

(17/11/23) Guardian - collapsed FTSE-100 NMC Health misled markets over $3.2 bn. of debt, says FCA
(18/12/20) Lux Times - Investors sue CSSF for not protecting against losses
(11/12/20) LFP I files against Luxembourg regulator CSSF for gross negligence
(3/12/20) LFP I files against Alter Domus over Blackstar Commodities
(14/9/20) Financial Times - Luxembourg financial watchdog sharpens teeth after criticism
(19/4/20) Investment Officer - CSSF fails to enforce fund regulation
(25/2/20) Paperjam - La CSSF dans le viseur des administrateurs d un fonds
(24/2/20) Financial Times - Luxembourg regulator accused of failing to protect investors
(2/1/20) LFP I SICAV files complaints against former directors
(20/12/19) Financial Times - NMC Health held talks to raise €200m in off-balance sheet debt
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