Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697628104493.pdf (Australia)
MY STORY In 2005 I heard about the Great Southern Investment opportunity from a friend.

This was on the last day of the financial year.

I thought it would be a good investment opportunity and also was told it was tax deductible.

I went to the office of Navra Financial Investments in Brisbane and within the hour I was signed up for $30,000 in Great Southern tree plantation scheme.
It was all too easy and there was no check into my financial situation or ability to repay the loan and interest over the coming years.

The planner asked me about my financial position and had no way of checking this before signing me up.

Next year I did the same attending a seminar with Navra Financial Services, who presented Great Southern as a very good investment option with very good returns as the trees matured and were harvested.
I took their advise and the graphs they produced, showing the way tree harvesting would be able to repay interest and capital as well as give me a long tern investment return.

All this without me having to pay much, only the GST on my loan.

It was all too easy.

Coupled with this was the ATO accepting this investment as a tax deductible option.

I was winning on all sides as not only was I reducing my tax but I was also investing in a renewable product, which would help the economy and world.
After another “inspiring” seminar in 2008 where Navra Financial Services invited an executive from Great Southern to address us, I invested in the grape scheme.

All up I borrowed $103,000 to invest in these schemes over 3 years.

I did this on what seemed good financial advice, charts, graphs, seminars and “hype” from Navra Financial Services and Great Southern.
It was a great shock to hear that Great Southern had gone into receivership, especially after we had been told how well the company was doing at the seminar earlier in the year.

Since then myself and many others caught up in this, have been hoping for a fair and dignified settlement based on an investigation into the ethics of how we were sold the products.

As well I have a strong feeling that the financial advice we were given was based on greed and not in our best interests.
I now owe Bendigo bank $200,000 due to interest accrued on my outstanding balance.

It is stressful and challenging to know, if I have to pay this money I will loose everything and be without a home or money.

I feel I was not given any sound advise but the banks, Navra and the planners and Great Southern were all motivated by greed.
David Abraham Forestry managed investment schemesSubmission 64 TERMS OF REFERENCE FORESTRY MANAGED INVESTMENT SCHEMES The structure and development of forestry managed investment schemes (MIS) a) the motivation and drivers that established the framework for the schemes initially.

From what I understand, these schemes have grown out of a need and demand for renewable energy such as trees, which are good for the environment, economy and investors.
They have been widely advertised as having long term profits and as a secure way to invest our money.

Timber Corp is one such company who promoted such schemes, and Great Southern another.

I was advised that to invest in forestry was sound, economically responsible and safe.

Unfortunately, this has not turned out to be the case.
b) the role of governments in administering and regulating forestry MIS I don't know what role government has had in regulating and administering such schemes but I did know that the Great Southern scheme was tax deductible, so I assumed it had the governments backing.

From my experience the government did not have much say in either administering or regulating such schemes and, in hind site should have had much more.
These schemes had a momentum all of their own and just got out of control through poor or no regulation, poor management and greed.

c) the current policy and regulatory framework of forestry MIS.

Once again I don't know what policy or regulatory framework there is for these schemes.

Maybe there needs to be an investigation into this and proper frame works put in place so disasters such as Great Southern do not happen again.
d) the role of some in the financial services industry in promoting and selling forestry MIS.

I have just been burned by financial advice which was ill informed and motivated out of greed, and not ethics.

It was all too easy to offer loans for Great Southern schemes at high interest and with little or no check on my ability to repay the loan.

There should be some form of compensation to investors who are abused in this way and rouge advisers made to be accountable for their actions.
Forestry managed investment schemesSubmission 64 e) compensation arrangements for small investors in forestry MIS who have lost life savings and their homes in the face of the collapse of forestry MIS.

At the moment there seems little or no way of compensating investors in failed schemes.

If there is, then most of this goes to lawyers and receivers who make a lot of money out of such failed schemes.
I did receive a paltry $150 as part of compensation, but in owing $200,000 to Bendigo, this seems like a bit of a joke.

This whole area of compensation needs to be looked into.

I understand that me, as an investor has some responsibility in making investments, but when advice is given out of greed and there is no regulation as to how the product is advertised or sold, then many people are going to be badly affected, as in the Great Southern case.
f) the burden on farmers and other agricultural producers who have been left with the uncertainty of timber plantations linked to forestry MIS on their land.

I know that a lot of land was purchased by companies such as Great Southern, to plant trees and grapes.

Millions if not billions of dollars was spent and now most of those plantations are useless.
It is such as waste of money and land, and who knows how it has affected farmers and others in the agricultural industry who made some sought of investment in these schemes.

g) the options for reforming forestry MIS to protect investors and rural communities.

Obviously there needs to be some effort made to investigate why such schemes as Timber Corp and Great Southern collapsed, leaving many people in very serious financial strife.
Schemes such as Timber Corp and Great Southern, do NOT work, especially when greed takes over and there is no frame work or regulations governing what is sold to whom.

Investors make their choices based on the information they receive, but if that information is biased or not ethical and is driven by greed then investors are bound to be hurt.

Better regulations and care need to be put in place so such disasters as Great Southern and Timber Corp do not happen again.
I want Parliament to acknowledge that and agree to a ROYAL COMISSION INTO THE BANKING SYSTEM.

Forestry managed investment schemesSubmission 64