LHL Concept

LHL Concepts Pty Ltd call themselves a venture capitalist company capable of handling infrastructure projects worth up to $100 million USD. They managed to convince several respected bankers, property developers and solicitors in Australia that this was the case. What follows is an account of how LHL Concepts’ partners inserted their company into a $60 million USD building sale, made themselves responsible for providing $40 million USD worth of funding and then disappeared with a substantial chunk of their client’s deposit – to the tune of $250,000 USD.

Critical Facts

- LHL Concepts’ potential client was interested in purchasing a new high rise in a major city in Australia. He needed capital and so LHL Concepts’ associate in Perth, Anthony McIlwain (business partner in Last Pixel) scouted him and introduced him to the Executive Chairman (and friend) Julian Bulman. The cost of the introduction was $50,000 USD.
- LHL Concepts (aka Leybourne Holdings) had a contract drafted for their new client by their solicitor in New York: Marshall Shichtman. It was considered legally binding by the client, the building owner and their lawyers. The client paid his deposit of $1.5 million USD to Barclays Wealth Bank, Geneva. In return, LHL Concepts agreed to pay $40 million USD to the developer in exchange for his building.
- During 2010, LHL Concepts put off all the parties involved even as its partners promised payment of the $40 million USD. In fact, Julian Bulman and his Chief Financial Officer, Mr Ian Williamson, emailed both the high rise proprietor, his bankers and Marshal Shichtman, claiming that the amount had been transferred but it did not arrive.
- The purchaser, concerned about the delays, checked on his deposit - $1.5 million USD – at Barclays in Geneva. At this time, he was informed that part of his secure deposit - 250,000 USD - had been loaned to LHL Concepts, although no-one had thought to inform him, or ask his permission. James Persse, Managing Director, made a decision to return what was left of the purchaser’s money as he too began to get anxious over the continued stalling from LHL Concepts.
- When the purchaser got in touch with LHL Concepts’ partners - Julian Bulman and Ian Williamson – regarding this loan, he was assured that the amount taken was indeed a loan and as such would be refunded. After confirming this fact to many of the parties in the deal, they then backtracked. LHL Concepts told the purchaser, their client, that the amount was actually an administrative fee, and so was not refundable. At around this time, Anthony McIlwain gave the purchaser an invoice for $450,000 USD for his introduction.
- Half the year went by and LHL Concepts had still not paid up. The contract was above board, as had been verified by the purchaser, LHL Concepts’ Australian lawyers (HWL Ebsworth) and the bankers involved. Only LHL Concepts decided not to honour it, and their promised $40 million USD never materialized.
- Everyone who had been a party to the contract (the purchaser, the high rise proprietor, their bankers and lawyers) is convinced that LHL Concepts were engaged in fraudulent behaviour. They advise that LHL Concepts had no intention of abiding by the deal, instead planning from the beginning to abscond with the purchaser’s down payment. Substantiating this belief is Mr Williamson’s written statement to one of those involved saying LHL Concepts planned to renege on their contract.

The Aftermath
LHL Concepts’ partners, Mr Bulman and Mr Williamson, have disappeared with the purchaser’s $250,000 USD. He has reported this to the Australian Federal Police and Interpol as a theft. Mr Williamson, unaccountably quiet during this debacle, is refusing to answer any missives from those disappointed by their failure to hold up their end of the bargain. In December 2010, he did give one answer: it was to a journalist asking questions for the Sunday Mail newspaper. In his reply, he stated that a return of the $250,000 USD to the purchaser would immediately be initiated. Unsurprisingly, a refund was not received.

LHL Concepts’ actions have been devastating for the purchaser and proprietor. Both firmly believe that LHL Concepts defrauded them, taking both their money and, for the proprieter, the project of a lifetime. The purchaser has lost $250,000 and the high rise went into Administration, the proprietor losing all that he owned. There ought to be an accounting for LHL Concepts and its partners, Julian Bulman and Ian Williamson.