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Chartwell boss facing charged after company f -

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Chartwell boss facing charged after company flops

The World Today - Monday, 5 May , 2008 12:27:00

Reporter: Alison Caldwell

ELEANOR HALL: The owner of the failed share trading group, Chartwell Enterprises, says he's
expecting to be charged over his role in the $70 million collapse.

Investors in the defunct Geelong-based company, which went into administration last month, are
meeting with creditors today. The owner, Graeme Hoy, says the $70 million of investors' money
that's been lost was placed into an imperfect trading system.

But he denies lying to investors about where the money was going or the returns they could expect,
as Alison Caldwell reports from Melbourne.

ALISON CALDWELL: The owner of the beleaguered Chartwell Enterprises, Graeme Hoy, wanted to send two
key messages when he did his first major interview with ABC Local Radio's Jon Faine in Melbourne
this morning.

First an apology to the investors who've lost around $70 million.

GRAEME HOY: Yeah, I greatly regret this outcome. Somebody said to me, "How do you live with
yourself?" And I'm finding it very difficult to live with myself.

I see the faces of all those people in front of me everyday. I can't escape them. I'm just
devastated, absolutely devastated. It's not an outcome that was intended. I'll deal with whatever I
have to deal with, but people need to know that I'm accepting, I'm here, I'm accountable for it.

ALISON CALDWELL: Graeme Hoy now claims the money was placed in a unique trading system which he
describes as "imperfect".

GRAEME HOY: I told them we made money, which we did, by trading a unique system. That we had not
perfected completely, which was why it was up and down. It was a technically based system,
analysing price movements over time and working out directions of potential trades.

ALISON CALDWELL: And to anyone who's even vaguely considering running a similar system, he says
give his a try.

GRAEME HOY: In fact, that's probably the only reason I'm here, because I'm facing a fair bit of
heat on a lot of fronts, is because at some point, some backer somewhere out there will pick this
up and see that there is a good system and that with the right backing it can restore the funds to
the investors.

ALISON CALDWELL: He says overtime, the returns he was delivering were too high. He admits some
investors were promised a 70 per cent return.

GRAEME HOY: Hardly anybody got 70 per cent.

JON FAINE: Well, halve it, 35 per cent, it's still ridiculous.

GRAEME HOY: It's a high rate of return, but it can be achieved.


GRAEME HOY: Your superannuation fund might well have achieved 30 per cent in the last 12 months...


GRAEME HOY: Well, not the last 12 months, but certainly in the previous two or three years, it
might have got up towards 30 per cent or better.

ALISON CALDWELL: Graeme Hoy is refusing to reveal when his company last made a profit or if he was
propping up investments using other investors' money.

He admits he became greedy.

GRAEME HOY: Ego out of control. The only thing that matters is people, in the end, and that's a
hard lesson to learn and I'm really sorry for all those people who are suffering.

ALISON CALDWELL: Listening in to the interview was Chartwell's straight talking administrator Bruno
Secatore, who today came along bearing bad news for investors.

BRUNO SECATORE: Look I'd have to say it's pretty grim. We have identified, commenced to identify a
certain payments going out, but unfortunately only having received the company records late Monday
last week, and investigations are probably a week behind as to where we would have liked them. But,

JON FAINE: So, as matters stand today, are you expecting to recover anything or not?

BRUNO SECATORE: I'd have to say it's very grim.

ALISON CALDWELL: Also listening in from Geelong, investor Anne Abrahmson. She's not blaming anyone
else but herself.

ANNE ABRAHMSON: I accept that I went into high-risk and I did as much as due diligence as I could
do and this is what happens.

ALISON CALDWELL: Graeme Hoy has had to surrender his black Jaguar and his Rolls Royce along with
his penthouse and luxury cruiser.

Another investor, who wants only to be known as Ian, says he's lost $40,000. He believes Mr Hoy has
acted unfairly.

IAN: Reading the press, his lifestyle is something that maybe we're all entitled to, but I believe
to live a lifestyle like that, you must be fair to everyone.

ELEANOR HALL: That's Chartwell investor, whose names Ian, we don't have his surname, ending Alison
Caldwell's report.*(See editor's note)

*Editor's note: The back announce in this transcript has been updated to identify the correct