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NZ-based Private Investigative Author & Blogger (Ret.)

2. War Erupts Within BBX Barter

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I have recently received a list of questions about BBX, an Australian barter company wherein the writer, a BBX insider, invited me to dig deeper. If any of the fourteen questions and their implied claims have any validity, BBX is destined for disaster. This post contains the results of my digging because dig indeed I did. My take is that the questions pretty much all have a high degree of validity; BBX is toast. This is the second in a series of posts about another crooked Australian-based international barter business, Bartercard of course is the other.

[ORIGINALLY POSTED in February 2017 at http://www.dennis.co.nz/2017/02/2-war-erupts-within-bbx-barter/index.html]

BBX is a commercial barter operation with a Head Office in Hong Kong but operations actually run from Sydney that was established by Michael Touma, a big-talking Aussie that ran the show entirely, well with the help of his family. His serious health issues in 2016 and relatively recent death caused huge loss in some ways but have also created opportunity for one of his daughters and CEO Carolin MacDonald to take the business forward in a few different ways. The reality however is ‘slightly’ different from the story presented by the Touma family.

I knew the founder of BBX, Michael Touma personally (as did thousands of other Australasian business people) and I, through my various businesses, was a member of BBX in New Zealand for years. I knew Michael, I knew him well enough to know that he was first and foremost a salesman. He was your quintessential loud-mouthed, big-talking Australian businessman – lovable and loved by many. He helped many people in business and into business but if reality coincided with his talk however, it was a happy day. I’ve never heard him being accused of over delivery!

BBX Thailand has had a checkered past and its operator for the last three years or so has been Australian Cameron McKean. On his recent departure from the organisation, he disseminated an email to (according to him) his Australasian friends and contacts within BBX. I received this communication via the Tipline and post it here in full.

I have undertaken a private investigation and with my past experiences with BBX, experience as commentator and blogger specialising in the barter industry, I believe that I have a very good knowledge of BBX and specifically the ‘curly’ subject matters raised here. I give my commentary for what it is worth later in this post. Note as you read that this is written by a BBX Franchisee, an insider who had operated for some three years under the BBX brand and had a very close working relationship with the now deceased founder of BBX. He also has commercial interests in the marketing industry.

Dear BBX Staff and Fellow Franchise owners,

Effective today I have resigned from BBX Thailand. As such my BBX Operations in Thailand will end immediately. I wish to inform you all why I have done this and why I think you also should be concerned.

Last year Michael Tooma founder, CEO and “Sole Director and Shareholder” of many BBX companies had a heart condition and fell hitting his head. Many of us had been told by his family that “Michael Tooma will be fine” and he was recovering from a heart problem. Its now clear for over 6 months behind the scenes the truth was very different to what we had been told.

I was informed by Ms Magali Russo (his eldest daughter on a trip to Thailand to visit my BBX Thailand franchise) that she was worried she would “get in deep trouble if anybody learned the truth”.  I asked her what she meant and she told me as follows:

“We have done a few illegal things after Dads accident. We needed money and so we faked his signature so we could get access to his Bank Accounts. We worried if HSBC found out that they would lock down the BBX International Bank accounts that had the money from recent BBX Franchise sales etc.
We also faked his signature to remove him as sole director of the many companies and appoint Carolin McDonald (Daughter)as Director and CEO to the companies so she could liquidate some assets. We sold the head office building and other real estate held in Michael Toomas name. He has other children not involved in the business and we don’t want them to get their hands-on stuff that belongs to BBX so we had to move things around secretly. BBX had big money problems and I worry if anybody found out we were trading insolvent then we would have lost everything.”

Based on the above statements by Ms Magali Russo and others made over the following week of her stay in Thailand, it became clear that I had been deceived. I had been told that Michael Tooma would recover and just had a heart condition that was being treated and he would make a full recovery. I believe the reason for the lie was to give Carolin and Magali time to sell off assets before anybody knew the truth and asked questions.

As such Michael Tooma did not appoint Carolin MacDonald or Magali Russo as Directors to his companies as he was not capable of doing so. I don’t believe Carolin McDonald is the lawful Director and Shareholder of BBX.

BBX Australia Staff had been aware of much of this and failed to report it to the authorities. This is clear from the number of emails sent by outgoing Chrysie Morris. She sent a number of emails confirming much of what was said to me by Magali. Staff could consider the following and seek independent legal advice: https://www.sydneycriminallawyers.com.au/blog/is-it-ever-against-the-law-not-to-report-an-alleged-crime/

Questions that need to be asked of Carolin MacDonald and Magali Russo:

1. Did you forge the signature of Michael Tooma while he was in hospital?
2. How did Michael Tooma sign documents while in hospital in a coma or after Doctors informed that he was incapacitated with a brain injury?
3. Did you lie to Staff and BBX Members in relation to the condition of Sole Director and Founder Michael Tooma after he was admitted in hospital?
4. Is it true you sold for cash goods purchased with BBX Credits / Members Funds and sold them in order to pay personal expenses and debts?
5. Is it true the company was insolvent at the time of Michael Tooma’s accident?
6. Is it true that the company is currently only surviving on the funds raised by selling the Sydney DA approved property that was intended as the new head office for BBX?
7. Is it true that the amount of Active trading members in Australia is greatly reduces from two years ago? (Under 2500 currently)
8. Is it true that BBX India was in fact closed for a 3rd time last year?
9. Is it true that BBX New Zealand office has closed or is not operating?
10. Is it true that Magali Russo has been banned as a Director of a New Zealand company?
11. Is it true that the New Zealand revenue department is seeking Taxes and fines more than NZD$140’000?
12. Is it true GBI China has left BBX and is now not part of BBX International?
13. Is it true Mr Vikus head of IT for BBX lost the backups of all Member Agreements including from Thailand and as such all contracts for BBX Thailand members have now been lost?
14. Is it true that the numbers of over 90’000 Cardholders is known to be false and untrue and is misleading the members to believe the business is growing and is larger than what it truly is?

The Barter Business is about reputation. Staff, Members and Franchise Holders have the right to ask questions and expect complete and truthful answers.

I believe the questions asked above are serious and each of us need to ask and demand answers. I can not in all honestly continue to ask my friends and fellow business people to be part of a BBX Barter Trade Exchange under the current conditions. The loss of Michael Tooma I believe is a major loss to the business and his daughters that inherited the business are not in a position to continue his vision.

I worked with Michael Tooma for over 10+ years assisting grow the business and share business ideas. We spoke about his future plans and I believed in the vision and I was excited to be a part of it. I sold my core business and invested in BBX. Nobody expected the sudden loss of Michael Tooma and that includes myself. Recent BBX Sydney expo photos tell a sad story of BBX post Michael. Add to this the negative member reviews on BBX Australia Facebook.

You should not rely on any of the above and should make your own investigations before making any decisions. In this letter, I have informed what I was told and the questions that I have.

Cameron McKean

According to Cameron he sent this to 77 people on his database, mainly BBX insiders and friends. He says that he didn’t send it to the UK people; it may be that he had respect for the UK Agent; there may be other reasons why not. Time will tell I am sure.

Investigating BBX

The process I undertook was to go straight to BBX for comment. I spoke to more than one person and got a blanket denial of EVERYTHING followed by repeated ad hominem attacks on the writer, Cameron McKean. He’s gay; he’s doing it because, because because and repeated refusal to deal with any of the questions raised. My interview with Carolin McDonald, CEO of the BBX operations was interesting to say the least. It was cordial but repeated a mantra that I have faced from all involved in the BBX business, basically:

This is ALL total BS, from a guy from a bitter ‘unstable’ man with an agenda. He set up another competing business; got found out and BBX is taking him to court. NOTHING is true. It is all made up. BBX is great and getting greater. What this guy is doing is personal and really sucks, especially in the face of a grieving family. The Touma family would NEVER do anything like that. Long live Michael and his legacy!

Carolin forwarded me the following message, one that saw the rounds within the BBX family from Michael’s widow. I believe that it is indeed from Mireile. Mireile is French. There is passion within; the grammar errors are typical of cross-cultural communications. I  have also validated it by others. As with the above-quoted email from Cameron, I have received it from multiple sources and consider it to be a genuine.

In respect of my husband privacy, the story of his ordeal has been kept private by family, but it is now time to share it with you in the light of the vicious false accusations of Cameron McKean. Michael Touma suffered a severe heart attack followed by a fall while we were attending a BBX function in Melbourne in November 2015. After coming out of intensive care and a stay in St Vincent Melbourne, Michael recovered sufficiently to be transported and moved to the San Hospital in Sydney. Michael continued his recovery there and was able to resume some activities until another heart attack strike on the night of the first of January 2016.

By sheer devotion and love for Michael, we were able to help him to start the long road to recovery.
In the following months, Michael received many visits from BBX Franchise owners and members, his accountant, his solicitor, and was surrounded by the comfort of his family, grandchildren and friends. Despite his doctors best efforts, another massive heart attack took Michael away from us on the 7th of July 2016.

My family and myself are very deeply saddened that the memory of Michael and his dream for BBX are disrespected and threatened by such unsavoury character as Cameron McKean and legal action has already began.

Thank you for the overwhelming support we received from all, obviously you all know the poor reputation of McKean.

The whole BBX family has spoken, keep Michael dream alive.

The response from BBX insiders still with BBX was also along the same lines – best described as extraordinarily defensive and strongly personalised. There was also the typical cult-leadership thing that any strong leader like Michael generates – he can do nothing wrong [as long as things are going well for me] sort of thing.

Here are examples of the sort of thing from a couple of BBX Franchisees still within the system:

. . . unfounded spiteful and scullilous allegations made by the Ex Thailand franchise owner Cameron Mckean then all you would achieve by commenting would be to spread this complete tripe!

and

. . . some of this is very personal and bears no connection with any issues – only muck from Cameron and a disgruntled former employee who sent it to me months ago which I ignored as a waste of oxygen . . . I repeat there is no story here other then what Cameron wants to stir up . . .

and

If Cameron had any evidence of any of these he would be using it in his legal proceedings rather than facebook and email bullying.

Honestly these accusations’ are a joke and Cameron is just acting out because he got caught trying to set up his own trade exchange and was served with legal action and his franchise revoked.

Obviously he is embarrassed and has done the wrong thing. Not only is he acting out in a dramatic way, but is trying to tarnish the BBX name so the members will join his exchange.

I am disgusted in the way that Cameron has dealt with this, the family is still trying to deal without every day with Michael, and to just go through their first Christmas without him would have been hard enough.

BBX has been growing from strength to strength since I have joined and we will continue to do so, by the books and with all our enthusiasm and passion, just like Michael would have wanted.

So there we have it . . . two diametrically opposed stories . . . vehement denial from the BBX team and some huge questions.

The Questions

Before I answer them all, I would like to share that I am still part way through my investigations. Revelations like these take time to come to the surface and while I think I have a good handle on the BBX beast at a big-picture level, there is still a truckload of information I am still seeking.

These questions however are a good start, as addressing them shows the dynamics at work. If there is deception then you can be sure that other forms of dishonesty will exist. Liars and thieves are brothers.

The other thing that should be noted is that the writer has been very careful to ask questions. These are not direct claims and from what I can see his entire communication would be very hard to attack legally for defamation. He’s stated his situation, identified his concerns given his advice and listed key questions. He’s sent it to a limited number of key people and not gone public with it. On the surface it all looks and smells quite professional and has what is called internal consistency. If he’s got some hidden agenda then he’s hidden it very well!

1. Did you forge the signature of Michael Tooma while he was in hospital?
2. How did Michael Tooma sign documents while in hospital in a coma or after Doctors informed that he was incapacitated with a brain injury?

I have yet to see evidence that shows without a doubt that these things happened. The questions are there. Clearly there is smoke, but how big is the fire? I don’t know. The manner in which Carolin handled the entire thing is in keeping with the possibility. What else can she do if the questions highlight reality? I think that yes, indeed something like this has happened. I cannot say at this stage that I have proof (only the authorities will be able to get that) and the Touma family are unlikely to fess up to something untoward happening but it would be very easy to disprove. That they haven’t probably means that they can’t.

3. Did you lie to Staff and BBX Members in relation to the condition of Sole Director and Founder Michael Tooma after he was admitted in hospital?

Yes they did, and they (representatives of the BBX family) admit this. They protected the family in adversity. This sounds perfectly reasonable. There could be, well actually I know that there are, other factors of course but the answer here is, “Yes”.

4. Is it true you sold for cash goods purchased with BBX Credits / Members Funds and sold them in order to pay personal expenses and debts?

My answer is, “Yes”. This is called cash conversion where we receive real tangible value into our business and issue credit in return. We convert barter credit into cash using goods. I have received confirmation from multiple sources that yes, indeed BBX does actively cash-convert. This has significance when it comes to the value of the BBX currency and therefore the health of the exchange because unless the cash is used for BBX business purposes then this is currency debasement, inflation will occur and if it is not accounted for correctly then it is theft, from their own members. Trust in BBX Management (i.e. the Touma family) is apparently high within the BBX family. From what I know, this is misguided. More on this topic in upcoming posts.

5. Is it true the company was insolvent at the time of Michael Tooma’s accident?
6. Is it true that the company is currently only surviving on the funds raised by selling the Sydney DA approved property that was intended as the new head office for BBX?

I have enough evidence now to believe that BBX is ‘cash-strapped’ and likely has been for quite a long time. The level of insolvency though is a question that the authorities can only really answer fully. Short of a Touma family insider coughing up the intel, all I can see at present is repeated ongoing difficulty paying the bills and a string of companies and entities either in statutory management, dead or dying and changing suspiciously. Along with other fraudulent activities this makes sense to me, so my answer to these questions is, “Yes, most likely, but to what degree I’ve yet to ascertain”.

7. Is it true that the amount of Active trading members in Australia is greatly reduces from two years ago? (Under 2500 currently)

The figures quoted here are accurate to within 5-10%.

8. Is it true that BBX India was in fact closed for a 3rd time last year?

India, despite all appearances and claims to the contrary is dead. Staff sold off equipment to pay their wages and confirm that it is no more.

9. Is it true that BBX New Zealand office has closed or is not operating?

No. It is still operating, but it is a remote shell with part-time staff working from shared office and reporting to Australia. They don’t return calls and the members all know that it is dead. The technical answer to this question is, “No, it still exists” The reality however is that it doesn’t.

10. Is it true that Magali Russo has been banned as a Director of a New Zealand company?

No. No person by the name of Russo, or Magali is on the official list of Disqualified Directors which is an accurate reflection of official status. I do believe however that Magali may believe this and that she is effectively banned because of recoverable debts to the authorities if she ever entered New Zealand again. I am surprised that Cameron didn’t do his own fact checking before asking this question because it is simple to check. NZ Companies Office; Search Disqualified Directors – bang, no hits. Now if only the tenth question out of fourteen is perhaps if you want to be picky about it, a little sloppy that says a lot about the other thirteen. I consider it my job though to be thorough and speak it like it is – 100%. Technically the answer to his question is, “No” but there is clearly more to this story because she was removed as a director in January 2017 and nobody can or will tell me why. Watch this space.

11. Is it true that the New Zealand revenue department is seeking Taxes and fines more than NZD$140’000?

I have yet to receive confirmation of this sufficient to answer definitively but in the context of what I know about BBX New Zealand (having been a member for years in times past and keeping up to date since having left AND my current investigation) the answer is almost certainly, “Yes!” From indications received thus far it seems to me that this is probably a historical debt following judgment on Magali Russo personally. I will update these posts as or when I have the evidence.

12. Is it true GBI China has left BBX and is now not part of BBX International?

The issue of BBX and China is a biggie which goes back to business deals done around the time of Michael’ s heart attack and fall. I think the answer is, “Yes!” but it’s not as simple as “Hey China has gone!” and that’s that. I am sure that the details will come out as more people use my Tipline but Carolin appears to be desperate to cover this up, saying to me “China is our biggest/best Franchise!” If that is the case then BBX is in real trouble! My take is that BBX has indeed lost the bulk of their Chinese operations and that there is MUCH more to this story to come out.

13. Is it true Mr Vikus head of IT for BBX lost the backups of all Member Agreements including from Thailand and as such all contracts for BBX Thailand members have now been lost?

Clearly, yes. The writer of these questions knows the answer and asks it because he knows the answer is, “Yes!” I would note however that this all happened in Michael’s time and bringing it to the surface now does to some degree validate BBX family’s claims that these questions are “All sour grapes”. That said though, if it did happen then it is still a live issue and will become red hot if (or when now) it ever became a contested situation.

14. Is it true that the numbers of over 90’000 Cardholders is known to be false and untrue and is misleading the members to believe the business is growing and is larger than what it truly is?

Yes and No. If ‘Cardholders’ is a decent measurement of an exchange then I’ll be your mother’s monkey’s uncle and IRTA’s role is brought even more into question. A ‘member’ of a legitimate barter/trade exchange is an entity that is actively trading AND in the last 12 months.  Bartercard were one of the first to bring in the concept of Cardholders. It’s a meaningless number. FFS, even I have a Bartercard “card”. It’s a gift card – a spend-down account. Bartercard introduced this marketing ploy to cover the fact that their membership was in serious decline. Multiple cards per member (company/business). BBX has copied this nonsense. Sit there in Head Office and issue another thousand [or ten] cards and give them away why don’t you! This is the way that conmen like Daniel Evans and the TradeQoin fake-it-until-they-make it. Issue gazillions of free memberships and then claim them as members – yeah, nah! Cardholders, yeah possibly. Members, nah!

So there you have it. A series of questions from Thailand answered as best as I can for the moment.

Now to the guts of it . . . while there is potentially some very serious stuff in here, there is a LOT more outside of this communication relating to BBX and its operations that I will be sharing in my next post. Hold on folks . . . the ride is about to get a bit rocky!

BTW, please feel free to contact me via the Tipline if you wish to add to public knowledge on the matters raised here.

In my next post I dive in even deeper to the BBX operations and expose more problems that are not addressed in this list of questions, before I discuss the wider implications of deceptions within BBX such a serious and [sadly] common occurrence within the barter industry.

The BBX Investigation Series

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