OZschwitz: It may be the biggest investment scandal of which you have never heard - Licensed 'professional' investment manager blows $2 billion

Former employee's tax row sheds light on huge losses by Australian investors with a global asset manager.

IT MAY be the biggest investment scandal of which you have never heard.

Australian investors are said to have lost $2 billion when their investments were supposedly treated improperly by one of the world's largest fund managers.

The alleged scandal has only come to light nine years later because of a tax row playing out in the Administrative Appeals Tribunal.

The cast includes Michael Triguboff, head of $4 billion fund manager MIR and nephew of billionaire property developer Harry Triguboff. Other roles are played by a posse of disgruntled New York fund managers and the usual lawyers, consultants and hangers-on. As a self-styled white-hat whistleblower, Triguboff says he was wronged when he was managing director of the Australian arm of Lazard Asset Management Pacific.

The scenes include a tense meeting full of of anger and alleged threats at an upmarket Sydney hotel. There are similarly difficult meetings in hotel rooms and offices in New York as Triguboff's case was raised with his US masters. Those same US masters went on to rule a multinational funds management business that now has more than $US160 billion ($A150 billion) in assets.

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OZschwitz: It may be the biggest investment scandal of which you have never heard - Licensed 'professional' investment manager blows $2 billion

OZschwitz: It may be the biggest investment scandal of which you have never heard - Licensed 'professional' investment manager blows $2 billion

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