Member for Throsby Stephen Jones has called for the parliamentary inquiry into the collapse of Trio to be reopened after the Mercury revealed Illawarra money was channelled to Sydney's North Shore.
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Millions of dollars from Illawarra Trio Capital investors was illegally used to pay pensions of Sydney retirees to prop up a Ponzi scheme run by a convicted fraudster, documents reveal.
Shawn Richard, one of only two people jailed over the fraud, devised a scheme whereby money was moved from Trio funds, mainly the Astarra Strategic Fund, to cover commitments of the ARP Growth Fund.
ANZ bank statements for Astarra Capital, the responsible entity for ARP Growth Fund, confirm direct transfers from ASF bank accounts to the ARP Growth Fund bank account.
Mr Jones said he had written to the chairs of the parliamentary joint select committee on corporations and financial services, and the Senate standing committee on economics, urging the parliamentary inquiry into the collapse of Trio Capital be reopened.
Either that or the Senate economics committee inquire into specific allegations that have been made after the joint committee published its report, he said.
"This request is consistent with the approach I took on this matter under the former government," Mr Jones said.
"If these reports include information that has not been before the inquiry, that information should be held to the same scrutiny as evidence previously submitted."
He said the government "must not stand in the way of investigations into new allegations concerning the Trio fraud and reopen the parliamentary inquiry as a matter of priority".
Mr Jones also pressed the Abbott government to deliver on its pre-election promise made by then shadow finance minister Mathias Cormann.
"Before the election, then shadow finance minister Mathias Cormann made a commitment that an Abbott government would facilitate compensation", Mr Jones said.
Some 220 Illawarra residents were among 6000 Australians robbed of $176 million in hard-earned retirement savings.
In October 2013, ASIC said that after three years of investigation there was insufficient evidence to prove alleged kingpin Jack Flader had breached Australian law. However, its website says Flader was "allegedly the ultimate controller of the Trio group".
In other developments, the Administrative Appeals Tribunal (AAT) has affirmed ASIC's decision to permanently ban former Astarra director Eugene Liu from providing financial services.