The LM Emails (#16): When Warned about LM, One IFA Told Martyn to Go Away and Spread His Doom Elsewhere

“It is difficult to get a man to understand something when his salary depends upon his not understanding it.”  -Upton Sinclair

From 2003 to 2007, Martyn Terpilowski worked at Magellan alongside Fraser Jamieson. After Martyn moved to a different firm, both of them still kept in touch. 

In January 2009, Martyn emailed Jamieson and two other ex-colleagues to share his concerns about a number of funds, including LM (see here). 

Later that year, Martyn emailed Jamieson again to ask if he was still selling LM’s Managed Performance Fund (MPF). Martyn warned that the fund had major redemption issues, which Peter Drake had been lying about. He also mentioned that LM seemed to be using new investors’ money to pay back old investors—like a Ponzi scheme.

Jamieson acknowledged the redemption issues, which he’d already discovered, but he completely ignored the comments about Drake’s lies and LM’s apparent Ponzi activity.

When Martyn asked him one more time if he was still selling the MPF, Jamieson did not answer.

Two years later, Martyn learned that Jamieson had continued selling the MPF, along with Porton Capital, a military venture capital fund which paid a whopping 15% in commissions.

On Dec. 30, Martyn sent Jamieson a Happy New Years message, warning that both LM and Porton were dodgy and dangerous.

Martyn signed off as Doctor Doom, an old nickname he’d earned from correctly predicting that suspicious-looking investment schemes would end in disaster.

Jamieson did not respond politely.

Jamieson ultimately advised his clients to sink millions of dollars into LM and Porton. Those clients are now paying the consequences.

LM MPF investors may only get back 5% of their money. Porton Capital has not yet blown up as Martyn predicted, but investors’ money has been locked up for a very long time and doesn’t seem to be coming back anytime soon.

Fraser Jamieson currently works at AAM in Singapore. He no longer talks to Martyn.

November 2009

Martyn Terpilowski

From: Martyn Terpilowski
Sent: 02 November 2009 15:43
To: Fraser Jamieson
Subject: LM MPF

U still doing more of this??

Something wrong [in my opinion]… just had a meeting with Peter Drake, he does not like a question and admits basically deceiving us about redemptions on MPF – he told me in the summer – no issues with redemptions on MPF, but we have now discovered there have been issues since March at least…. Not good…

They still take money in also which is not good.. probably just to pay redemptions and there is a name for that.

Best regards

Martyn

Fraser Jamieson

From: Fraser Jamieson
Sent: Monday, November 02, 2009 3:46 PM
To: Martyn Terpilowski
Subject: RE: LM MPF

Been issues since March as you say…no need to deceive us as we had clients who were looking to redeem since March so we have known the liquidity issues all along

Martyn Terpilowski

From: Martyn Terpilowski
Sent: 02 November 2009 15:53
To: ‘Fraser Jamieson’
Subject: RE: LM MPF

U still buying this????

December 2011

Martyn Terpilowski

From: Martyn Terpilowski
Sent: 30 December 2011 15:49
To: Fraser Jamieson
Subject: LM….

Is D-O-D-G-E… if u are still doing that as well as Porton, no wonder u want to move…

I am trying desperately to get my clients money out of there.. Peter Drake is a megalomaniac…

U heard it here first…. Doctor Doom.

Happy New Year.

MT

Fraser Jamieson

From: Fraser Jamieson
Sent: Friday, December 30, 2011 4:43 PM
To: Martyn Terpilowski
Subject: RE: LM….

Fuck off and spread your doom elsewhere MT….

Martyn Terpilowski

From: Martyn Terpilowski
Sent: 30 December 2011 16:59
To: Fraser Jamieson
Subject: RE: LM….

I think we both know it is not doom…and have known for a long time… positivity can be very dangerous in the wrong hands and that has been proven time and time again..

I wonder what the powers that be [i.e., Magellan’s management] would have thought if [a very infamous company] had been flogging this kind of thing? Especially after everything else?

[Due diligence] requirements have changed somewhat the worse things have become. How things have changed eh….

Have a good one…

MT

Fraser Jamieson

From: Fraser Jamieson
Sent: Friday, December 30, 2011 5:00 PM
To: Martyn Terpilowski
Subject: RE: LM….

Mate I said fuck off and meant it

Martyn Terpilowski

From: Martyn Terpilowski
Sent: 30 December 2011 17:04
To: Fraser Jamieson
Subject: RE: LM….

I don’t think threatening me is a good idea mate…. Have a good New Year.

MT

Fraser Jamieson

From: Fraser Jamieson
Sent: Friday, December 30, 2011 5:07 PM
To: Martyn Terpilowski
Subject: RE: LM….

?????

It’s not a threat MT…I’m just telling you to fuck off and don’t contact me

Martyn Terpilowski

From: Martyn Terpilowski
Sent: Friday, December 30, 2011 5:10 PM
To: ‘Fraser Jamieson’
Subject: RE: LM….

Ok – no problem.. u are very touchy today.

Have a good one.

MT

One thought on “The LM Emails (#16): When Warned about LM, One IFA Told Martyn to Go Away and Spread His Doom Elsewhere

  1. Mk

    My word..are the FA’s also unlicensed and unregulated in Hk or are they regulated? Is there any financial ombudsman or authorities or lawyers that can help victims?

    Reply

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