SurfaceUnits
03-28-08, 03:44 PM
A FUND associated with motorsport-obsessed millionaire Craig Gore has hit financial trouble.
The finance group Wright Patton Shakespeare has frozen its $24.8 million mortgage fund, blaming a $3.275 million investment in cash-strapped Gold Coast financier City Pacific.
Mr Gore, the son of late "white shoe" developer Mike Gore, has also sold his two licences to run cars in the V8 Supercar competition.
He is also locked in a $US1.1 million dispute with the former manager of his US Champ Car team.
Earlier this month, WPS issued a supplementary product disclosure statement (PDS) freezing the fund.
The company said redemptions would be paid within 180 days, rather than the usual two business days, because it could not redeem $3.275 million it had invested in City Pacific's frozen First Mortgage Fund.
"The board also decided to withdraw the current PDS and for a period cease accepting retail applications for investment in the fund."
A spokesman for Mr Gore said it was "prudent to take those steps because of the situation with the City Pacific fund".
In September, Business Review Weekly's Young Rich list put Mr Gore's net worth at $183 million.
He built his empire up from nothing after his father fled the country in 1992, owing creditors at least $25 million.
The finance group Wright Patton Shakespeare has frozen its $24.8 million mortgage fund, blaming a $3.275 million investment in cash-strapped Gold Coast financier City Pacific.
Mr Gore, the son of late "white shoe" developer Mike Gore, has also sold his two licences to run cars in the V8 Supercar competition.
He is also locked in a $US1.1 million dispute with the former manager of his US Champ Car team.
Earlier this month, WPS issued a supplementary product disclosure statement (PDS) freezing the fund.
The company said redemptions would be paid within 180 days, rather than the usual two business days, because it could not redeem $3.275 million it had invested in City Pacific's frozen First Mortgage Fund.
"The board also decided to withdraw the current PDS and for a period cease accepting retail applications for investment in the fund."
A spokesman for Mr Gore said it was "prudent to take those steps because of the situation with the City Pacific fund".
In September, Business Review Weekly's Young Rich list put Mr Gore's net worth at $183 million.
He built his empire up from nothing after his father fled the country in 1992, owing creditors at least $25 million.