Probably worth looking at the history of Commstrat (ASX COJ)...

Probably worth looking at the history of Commstrat (ASX COJ) that was liquidated after Blue Sky as trustee for a fund underwrote a capital raising (that nobody took up) and lent unsecured funds to COJ and lost best part of $5M. Two Blue Sky directors were the majority directors on that company. Sowerby resigned 4 months before it was liquidated and with writing on the wall. As to valuations - well Blue Sky twice had E&Y do valuations and yes value went up to reflect what a good job Blue Sky was doing. Didn't prevent total loss of capital. is history repeating but on bigger scale?