Thursday, June 30, 2011

5. A distorted view

This blog has been created to redress insinuations, allegations, misinterpretations, and falsehoods concerning Voyageur Foundation and the Jarman family. It also tries to show how the media can manipulate information to foster it own view of a situation and act as judge and jury instead of reporting the facts as it should.

Article “Voyageur’s due diligence false”, by Alison Macgregor, The Montreal Gazette, May 12, 2011

Miss Macgregor wrote “The Jarmans, the Canadian family behind the foundation, told Canadians who invested their savings in firms recommended by the organization that it used independent third-party firms to perform “due diligence” on the investments. That claim has turned out to be false.”

Here are the facts - Voyageur Foundation was at all times independent to the companies that it reported on its web site. Voyageur Foundation did not receive money from these companies, in return for listing them on the web site. Before listing them, Voyageur Foundation hired professionals to comment on the business plans and arranged visits to their installations. After members got involved, Voyageur reviewed the companies on a quarterly basis. Statements issued by the companies were reviewed by Voyageur each month.

Miss Macgregor wrote “A Gazette investigation has found evidence that undermines the claim that Balmain Trading Corp. and Life Resources Inc. – two Panamanian firms charged with verifying and accrediting investments for the foundation – are independent of the Jarman family.”

Here are the facts - Voyageur Foundation has never stated that Balmain Trading Corp. or Life Resources Inc. is separate from Voyageur Foundation! It has never claimed that either company is independent of the Jarman family either.

Miss Macgregor wrote “Panama corporate registry records and internal Voyageur documents obtained by The Gazette reveal the Voyageur employee Christian White Hernandez, the husband of Voyageur director of Member services Angela Jarman, is also the president of Balmain…”

Here are the facts - Christian White has signed on Balmain Trading Ltd. loan contracts since the company was formed, and is listed as president of the company on all reports related to Balmain Trading. In May 2011, Balmain was awarded a judgment against Eiger Capital Corp. in Belize.

Miss Macgregor wrote “The Gazette has reported that Angela Jarman, the daughter of Voyageur founder Philip Jarman, is the president of Panama-based Red House Development Inc. … Red House shifted members’ money to Eiger Capital Corp., the major shareholder of a firm controlled by Ponzi scheme mastermind Gary Sorenson.”

Here are the facts - Once again, the Gazette is discovering something all members know! Angela Jarman has signed on Red House Developments Corp. loan agreements and is listed as president of the company on all reports related to Red House. In May 2011, Red House Developments Corp. was awarded a judgment against Eiger Capital Corp. in Belize.

Miss Macgregor wrote “A Gazette source has also disclosed that the Jarman Family received a commission of up to 6 per cent on investments made by Voyageur members.”

Here are the facts - Debenture companies borrowed funds from Voyageur members and lent them to specific companies. Members were advised how the funds lent to the debenture company would be used. The debenture companies charged 6% and disclosed this fee to members up-front. Fees were not hidden as they are in most conventional funds. Of the 6% fee, 2% was put aside in a legal defense fund, should the company default and the debenture company need to take action as has been the case with the Eiger situation.

Miss Macgregor wrote “That means that the Jarmans could have received close to $4 million in commission on the $65 million invested by Voyageur members. If 1,000 members paid between $1,000 and $2,000 in annual membership fees to Voyageur over a 10-year period, the Jarman family would have pulled in $10 million to $20 million from these fees as well.

Here are the facts –  There aren’t 1000 members. There aren’t annual fees of $1,000 -$2,000. And there hasn’t been $65 million invested! 

Miss Macgregor wrote “In essence, the advice provided by a company controlled by Philip Jarman’s son-in law urged investors to invest in a firm run by Philip’s daughter, netting the Jarmans a generous commission. The daughter’s company then handed investors’ money over to a company controlled by a Ponzi scheme mastermind – and investors weren’t able to retrieve their investments.”

Here are the facts – In essence, Voyageur Foundation ensured that members could:

  • Access reports about different investment companies and see what was known and what was not known about the company;
  • Meet other members who had invested in the same company, and compare notes;
  • Talk to investment company managers;
  • Visit the installations of the company;
  • Lend to those investment companies, without committing tax evasion and in a way that could be legally enforced in the jurisdiction where the company was based;
  • Learn upfront about any fees and costs (no hidden fees);
  • Receive contracts stating where money was invested;
  • Receive monthly statements and annual tax reports.

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