The LM Emails (#14): Two Days After LM Collapsed, Everything Was “Business As Usual at Drake Insurance”

Drake Insurance & Investment Services

Two days after LM went into voluntary administration, Wendy List, a Hong Kong-based employee at Drake Insurance & Investment Services, sent an email to advisers to reassure them that Drake Insurance would continue to pay commissions as usual. She said the changes at LM would have little impact on Drake Insurance, since the companies were separate legal entities.

Martyn Terpilowski was one of the adviser’s who received this email. He responded:

“Most ppl should never touch anything with that man’s name on it ever again. As I have been saying for years – he is a disgrace…You can take me off this list. Sorry.”

Kelvin Fair, the general manager at Drake Insurance, replied by saying “sorry you feel like this” and “thanks for your feedback”.

Soon afterwards, Drake Insurance got rid of Peter Drake’s name by reinventing itself as “Australian Global Insurance Services“.

According to an article in the Sydney Morning Herald:

“Drake is now turning up for work with Australian Global Insurance Services (AGIS) at Beach Road, Surfers Paradise. It is this company that operates his old Drake Insurance and Investment Services. Documents obtained by BusinessDay show it also meets his expenses and provides income to his girlfriend, Maria Magi. [Drake is also reported to be leasing his Mercedes from AGIS.]

The sole shareholder of AGIS, Kelvin Fair, is a long-time associate of Drake, and its sole director, Caroline Hodge, used to be the compliance officer at his $3 billion LM Investment group.”

According to ASIC (the Australian regulator), Kelvin Fair has recently been temporarily banned from providing financial services in Australia because he was caught lying about being a bankrupt. 

However, he is still listed as the general manager of AGIS.

[Correction: A commenter (see below) has pointed out that the webpage listing Kelvin Fair as general manager of AGIS has been hidden (not deleted) on the company’s website. It’s not clear whether he is still the general manager.]

Kelvin Fair

Kelvin Fair

AGIS Screenshot

A screenshot of AGIS’s website

Drake Insurance’s Annoucement

From: Wendy List []
Sent: Thursday, March 21, 2013 2:39 PM
To: Wendy List
Cc: Kelvin Fair
Subject: Business as usual at Drake Insurance


LM – Our Licensee 

Please be aware that on Tuesday our Licensee ‘LM Investment Management’  has appointed FTI Consulting as their voluntary administrator.

We have listed below some information that will give you some clarity and comfort with regards to Drake Insurance.

Q 1. Is there any cross ownership and cross liability between Drake Insurance & Investment Services and LM Investment Management?

Drake Insurance and Investment Services was licensed through LM Investment Management Ltd though operated as a separate legal entity.

Q 2. How are you licenced now?

We have been granted an alternative license under Drake Insurance and Investment Services.

Q 3. What happens to your commission from Drake Insurance & Investment Services?

Commission will continue to be paid to you as it has been in the past.

Drake Insurance 

Drake Insurance and Investment Services is operating in the normal course of business,  including operations with insurers, and is not in administration.

LM Investment Management Ltd is under voluntary administration. Voluntary Administration is as a proactive approach by the Board to create stability around the responsible entity and investor funds. This is not liquidation or receivership, and neither LM Investment Management Ltd  nor any of the Funds is in liquidation or receivership.  The financial requirements of LM Investment Management Ltd.’s licence remain in order.

Please feel free to call Kelvin or Wendy anytime to discuss any of the above.

Wendy T +852 2234 7870 M +852 9454 2985 E

Kelvin Fair T +852 2234 7870 M +61 408 713 344 E

Martyn Terpilowski

On 21/03/2013, at 5:41 PM, “Martyn Terpilowski” wrote:

Most ppl should never touch anything with that man’s name on it ever again. As I have been saying for years – he is a disgrace. Hopefinally everything has caught up with him now and he ends up behind bars where he belongs. Sadly I am sure clients will take huge haircuts, with most of the money being raised in recent yrs through disgusting commission levels and collusion with dodgy brokers – who knew that clients could not get money out again. I have had clients in waiting lists for 4yrs and desperately tried to get money out as they continued to raise capital without ever telling new investors this (by just raising commissions). I knew this would happen eventually and I was right all along. Peter is a megalomaniac who just does as he wants with total disregard for investors. Voluntary it may be, but there is no chance of LM operating in their current form again and certainly not with Mr. Drake at the helm.

You can take me off this list. Sorry.


Kelvin Fair

From: Kelvin Fair []
Sent: Thursday, March 21, 2013 4:55 PM
To: Martyn Terpilowski
Subject: Re: Business as usual at Drake Insurance

Thanks Martyn,

Sorry you feel Like this with Wendy and I.

Best Regards,

Kelvin Fair

Martyn Terpilowski

On 21/03/2013, at 5:57 PM, “Martyn Terpilowski” wrote:

Not with Wendy and you – with Peter Drake and he owns the company and in my view is a white collar criminal. I wish the staff who have mostly been deceived also, the best.


Kelvin Fair

From: Kelvin Fair []
Sent: Thursday, March 21, 2013 5:03 PM
To: Martyn Terpilowski
Subject: Re: Business as usual at Drake Insurance

Ok Martyn, thanks for your feedback mate sorry it’s not better conditions.

I wish your business all the best.

Best Regards,

Kelvin Fair

Martyn Terpilowski

From: Martyn Terpilowski
Sent: 21 March 2013 17:07
To: ‘Kelvin Fair’
Subject: RE: Business as usual at Drake Insurance 

Good luck also…. My good luck wishes do not extend to Martin Venier who should join Peter in prison, after mercilessly taking money off ppl knowing the situation – if u see him, tell him I asked after him.

Luckily I pulled away from this 4 yrs ago when it became obvious there was something very wrong – sadly some of my clients money is still stuck in there after all that time, despite all the new capital raised through collusion with dodgy brokers and 9% commissions…. Maybe u could ask your boss – where all the money is?



4 thoughts on “The LM Emails (#14): Two Days After LM Collapsed, Everything Was “Business As Usual at Drake Insurance”

  1. cpm

    Hi Martyn You must have found an old website page AGIS, if you look at their current site no names are listed under about us. This happens when people hide web pages rather then delete them.

    Whatever happens to Peter Drake and I am not a lawyer so have no idea if he will or will not face charges, I hope you and your clients are able to find some peace. It seems you have done all you could to help them and to stop others from being caught. We need more financial advisors like you. Smart with integrity and a caring nature, a great combination.

  2. Paul

    I really appreciate your honesty and integrity, I wish more Financial Advisors had the same. My FA is not even legal in Cyprus! But Sovereign and Skandia and LM accepted my “Low Risk” money, confirmed 15th March 2013!

    In support of your case, if you analyse the FMIF and MPF accounts from 2009-13, combined expenses were $286M, MPF the only open account for new investors raised $240M. Ponzi!! question my Italian?

    FMIF by 2012 had 100% Loan to Value with the vast majority of loans in default, yet LMIM (not to mention PTAL) allowed MPF to take $60M 2nd mortgages on FMIF assets! Williams signed this off? It was declared to ASIC(K)?????

    May 2012 new RG guidellines stating, “cash flow based on no new investors and a stop order by ASIC(K)” Ernst and Young and Williams quoted in accounts as validating the Valuations and Methods?? Now worth ?????

    Nov 2012 Ernst & Young at least had the professional Integrity to question “FMIF as a Going Concern” what no new investment, 100% loans in default, 90% of loans Capitalising Interest. Where do you get the cash to finish “On Completion Valued Assets”. Well MPF gave $60M to FMIF, how much to AIF? whilst LMIM and PTAL watched?
    So Deutshe want redemption June 2013. Suncorp want redemption March 2013, accounts state LM must reduce Suncorp facility to $18M! Williams no concern, obviously the audited cash flow supports all of this!. Williams sign off accounts despite: Suncorp March Loan Redemption, E & Y Going Concern FMIF $60M 2nd Mortgages?
    High quality related loans to PD, Ekard etc with independent reports as stated in the accounts, new international investors willing to pay $1B for MPF assets? Signed off by Williams, (Got To Laugh commended on Linkedin for Risk Analysis and Forensic Accounting)!!!
    Surprise! Surprise! Suncorp issue letter 3rd of March, Maddison Loan as of 28th Feb 2013 in Default, Suncorp have the right for total repayment and to appoint VA!, No mention in FTI Afidavit or in Korda Submissions. Would you renege on your single largest asset if you were not insolvent? Please correct me if I am wrong!
    What a bag of RATS, who can you Trust?
    Aus Financial system, Auditors, Receivers, Courts Mislead.
    We need an INDEPENDENT INQUIRY so this does not happen again.
    Not just FMIF and MPF, 161 Australian Funds have lost the money of >250,000 people.
    ASIC(K) do not have the means to regulate and prosecute!
    Independent Inquiry to get to the TRUTH and sort out the System, otherwise who will trust Aus Financial Services? This will happen again if a major change does not occur!


    1. Martyn Terpilowski

      A Bag of Rats indeed…. sadly I always wished I was wrong, but could not see how this was working and I cannot be the only person to work this out….. Blinded by greed for sure…. very sad indeed for investors and it seems on every level clients were let down from the Auditors, to Regulators to Bond Providers to Their Trusted Advisers…. and obviously Drake and his horrible group… I just hope through the access to this information, you guys can at least get some money back and also that those responsible have to take responsibility for their actions. Martyn

  3. Mohamed Al Seed

    These men need prison. Please some person make this happen. My friend needs to have peace before his mind go bad. Already very bad because of this. I worry that he may lost more as he has not yet told parents of his lost. How do you tell parents you have lost all that you saving for home, future. His wife left him. Maybe because of money, maybe because of his mind. My friend new person. Depress and sad all the time. May be peace for him to see people in jail. May be.


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