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CEO STATEMENT:

 

To all our stakeholders and clients at Life Resolutions,

Mary Magalotti and I started Life Resolutions over 18 years ago to assist in the delivery of counselling services to those in need across Australia.

Over many years, we have worked tirelessly and invested our time, effort and life savings to build and expand our business. Like many business owners, we have faced challenges, difficulties and hardships.

Despite this, Mary and I have remained steadfast in building positive relationships with our stakeholders and clients and we continue to play a key role to support and improve the mental well-being of all Australians.

The ABC Story:

As you may be aware, the ABC recently produced a story regarding Life Resolutions. Certain allegations were made regarding our business. We are deeply concerned by the story and consider its content grossly defamatory of Mary and I, and is an example of disgraceful and irresponsible journalism. Mary and I are now addressing the story and its defamatory and incorrect content. Despite our efforts to have our side of events heard, the journalist denied us this opportunity. We have taken action and are currently waiting on a response from the ABC to make an apology and corrections to their story.

The Restructure:

Life Resolutions has been a successful business model over the years, for many psychologists who have been and are with Life Resolutions. These psychologists have done very well with our support providing and managing clients, exclusive reception services, business support, marketing services and other areas of support. Life Resolutions has helped and assisted over half a million clients and is proud to be able to continue to support psychologists across the country and those who need access to mental health care.

Life Resolutions Australia Pty Ltd [LRA] was placed into liquidation due to the unconscionable conduct of an ex-employee, a franchisee and an external supplier who together have used the confidential information and relationships of the business to create several opposing businesses, in-direct competition to Life Resolutions.

Due to the behaviour of these parties, it has had a detrimental effect on Life Resolutions and our franchisees. The Company received advice by our experts of accountants and lawyers that it should move into a new structure to ensure that no staff member lost their job and that no franchisee lost their business, this was successfully achieved.

This was all completed legally, and as per the liquidator’s report, this was done at a fair market price. This means that there was no phoenix activity, unlike what the ABC has accused us of.

The people chosen to be interviewed in this broadcast were carefully selected for this story to reflect badly on Life Resolutions. Despite the list of people that David Chau from ABC states he had interviewed, ‘over 30’ he mentions that only two of them left comments about leaving the network successfully and financially better off. It has come to our attention that numerous psychologists the ABC contacted for an interview who shared positive comments about the business were told that they were not needed for an interview.

Incorrect items in the Broadcast:

There are countless points in the broadcast that were reported incorrectly. Here are some, but not all, corrections:

  1. Nihal Kucuk was not a Master franchisor or franchisee of Life Resolutions.
  2. Ms Kucuk loaned money against her property for her own business venture with buying a medical centre, completely unrelated to Life Resolutions. Her business then failed, at which point she convinced Life Resolutions to assist her by being part of our network so that she could refinance. The promise of a refund that was given to Ms Kucuk was subject to her achieving certain goals, including that she put in effort and did some work, she did not achieve these goals.
  3. Ms Kucuk is not a creditor of Life Resolutions. She is not on the list of creditors, because she is not owed any money.
  4. The ABC journalist edited parts of a voicemail left by Mary Magalotti that was in their broadcast. In that voicemail, Mary also said to Ms Kucuk that although the old business structure no longer existed, the new one was business as usual and they would assist her in this new structure.
  5. No money was owed to banks.
  6. People Psychology are not owed $191k and are not a creditor. They in fact owe Life Resolutions funds.
  7. Coral Palmer was not a franchisee of Life Resolutions. Coral only received some EAP clients and was in the gap of not being paid from a third party EAP service provider (issues due to their processes). Mary had called Coral to assure her that she would be looked after in the new entity. Mary did not make a demand to a former intern of Coral, but instead offered her an opportunity to apply to be part of the network and emailed her the costings.
  8. Mary and I were the largest owed creditors, investing our personal funds to support the business.
  9. Life Resolutions was Mr Alistair Way’s first client for his business after leaving Life Resolutions. The relationship was left on good terms and his reason for leaving Life Resolutions was to start his own business which was supported, at that time.
  10. Mr Alistair Way is in serious breach of his contract with Life Resolutions and an Intervention Order is also in place with himself and other parties involved in deliberately damaging our business.
  11. The reporter was well aware of all these facts.
  12. Life Resolutions was never operating as a phoenix operation.
  13. Mary and I did not breach our directors’ duties by trading while insolvent as insinuated. We don’t know whether the journalist had ever read a liquidator’s report before.  It is common for liquidators to express views that such conduct ‘may’ have occurred. There has been no evidence of this and ASIC has confirmed there is nothing to follow up.

Media Sensationalism

Wikipedia Definition:

“Sensationalism” is a type of editorial bias in mass “media” in which events and topics in news stories and pieces are overhyped to present biased impressions on events, which may cause a manipulation to the truth of a story”

Despite Life Resolutions’ continuous efforts to correctly inform David Chau at ABC with accurate facts prior to the story going to air, Life Resolutions was denied a request for an off-air interview with David Chau to provide him further insight for his investigation to ensure that his story was credible and factual.

We wanted to be transparent with you in this process as ABC’s broadcast was one-sided without having our correct version of events mentioned.

It is business as usual at Life Resolutions. Our focus is and always will be to provide the highest levels of mental health care and support to all Australians through our psychology services.

We understand you may have some concerns regarding this story and you may even have some questions, so please feel free to email: communications@liferesolutions.com.au and we will respond to you as soon as possible.

Thank you.

Warm Regards,

Jodie Brenton
Chief Executive Officer | Life Resolutions