FORMER Pyramid Building Society boss Bill Farrow is back in business with a lucrative deal that could net him up to $3.2 million.FORMER Pyramid Building Society boss Bill Farrow is back in business with a lucrative deal that could net him up to $3.2 million.
Mr Farrow stands to earn up to $2.6 million from the sale of Geelong-based TV business World Wide Entertainment, and an additional $600,000 as a consultant.
The deal outraged Pyramid victim Dr Trevor Brown, a Geelong vet who sank $166,000 into Pyramid shares.
Pyramid collapsed in 1990 with debts of $2 billion, leaving thousands of depositors and shareholders out of pocket.
"I think it's disgraceful," Dr Brown told the Herald Sun.
Premier John Brumby said he sympathised with victims of the Pyramid Building Society collapse but could not do anything about Mr Farrow's new business dealings.
"It's not my job to defend Bill Farrow," Mr Brumby said.
Mr Brumby added that any investigations of Mr Farrow's new business dealing would be a matter for the federal government.
According to documents, Mr Farrow, former America's Cup skipper John Bertrand and their families could collect as much as $10 million after they sold World Wide Entertainment yesterday.
Members of both families will control the new company and also stand to make more money as employees and consultants.
The sale was approved yesterday at a torrid Melbourne meeting of shareholders in listed company Coneco, which is to buy World Wide Entertainment.
Company directors faced a grilling from shareholders upset at the deal, which hands control of the merged company to the Farrow and Bertrand families.
Shares in the new company are to trade on the stock exchange in two weeks.
It is believed Coneco has already raised about $600,000 by issuing new shares.
Speaking after the meeting, Mr Farrow said he was "very keen to continue as a shareholder", but declined to answer questions.
Coneco chairman Bill Conn defended Mr Farrow, saying he had "a track record of building business success".
"I've known Bill a long time," he said. "He's a very creative person and can see trends in the marketplace. Bill made mistakes, which he would readily admit. Other people made mistakes with regards to Pyramid, including the Victorian Government."
Mr Farrow set up World Wide Entertainment in 1997. The company buys library footage, which it uses to make TV shows.
Under the takeover deal approved yesterday, World Wide Entertainment's directors are to join the board of the company.
Mr Farrow is not a director of World Wide Entertainment but will continue as a business development consultant.
World Wide Entertainment's shareholders, Mr Farrow, his son-in-law Jonathan Hutchings and Mr Bertrand, are to be paid $1 million in cash and $1.75 million in debt notes that can be converted to shares in Coneco.
They also will get $4.85 million of shares in Coneco and $3.05 million in cash and shares if the company meets performance hurdles.
Mr Hutchings, who will get $1.05 million as managing director over five years, said last night: "We are growing strongly. We employ about 60 people either directly or indirectly. In an economic climate that is very grim, it is a great little company."
heraldsun 6 Jan 2009
Here we have ANOTHER TYPICAL example of how Coroprate Fraud is rewarded by the people in power.
Laws are setup in such a manner that the people at the top of the food chain are EXEMPT from prosection, and are allowed to make further business deals, that may inevitable again lead to failure (bankrupcy = success, to the fraudster). These people are in the same circles, or if not, then ultimately part the 'boys club'.
These failures are paid for dearly by the general public.
Another example of the Anglo-Masonic system failing the people.
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