A group of wealthy Australians is taking a risk that could have huge implications for the financial system and global economy.
The group, called the Sovereigns of Australia, have raised more than $2.5 billion of the $5.3 billion they are seeking to raise from investors.
“The Sovereigns have not been paid,” says Mr Scott.
This is because they are not required to.
But they are the only group in Australia that have not paid their creditors.
A group of Australians who are wealthy enough to own property have decided they want to take a risk, so they have invested $2bn in a new company.
That company is the Sovereign Investment Fund, or SIF.
Its members include the wealthy, who are the ones who are holding their cash, and the ordinary Australians who want to be part of the world’s most famous family.
It is not a simple process.
Like many people, Mr Scott grew up in Sydney and has never owned a house.
His grandfather, an insurance salesman, was a wealthy man who owned many property projects, including Sydney’s Carlton and Gippsland.
In the 1950s, he founded a bank called KPMG and built up a large portfolio of property.
Then in the 1970s, a few years after he retired, his grandfather went bankrupt.
He sold off the family business and invested his wealth in the construction industry, which was booming in Sydney.
By the time Mr Scott was in his 30s, his wealth had grown so much that he bought a small parcel of land at the bottom of the Darling Downs, near Sydney.
He started building homes on the site, and in the early 1980s, it was the start of the Sydney suburb of Waverley.
Mr Scott was one of the first Australians to own properties.
When he started selling properties, the prices were often high.
However, by the early 1990s, Mr Sohn had begun to experience difficulties.
At the time, his family was in the process of selling a large property and he was in debt.
Eventually, he sold his share in the property and was left with $3.5 million.
So, in 1994, Mr Graziani decided to sell off his interest in the land, which would allow him to get out of debt.
His interest in that land was not enough to cover his mortgage payments, and his wife had left him to start his own business.
Since then, Mr Cazenave has not had a penny from the sale of his interest.
Instead, he has spent his money building the Sovereign fund, which has managed to collect about $2 million.
He is confident that the money will eventually be repaid.
Because he has been in business for almost 40 years, Mr Bischoff says he has a good track record.
For example, Mr Tashkin said he was not surprised to hear that the Sovereign group was making money.
“I’m sure they will be getting paid,” he said.
Why does it matter if the Sovereign Group has been liquidated?
“If the Sovereign Fund is solvent, the fund can borrow money and borrow more,” Mr Bishoff said.
“If they have liquidated, then they can use that money to fund projects that are needed around the world.”
Why is it important that the SIF does not lose money?
Mr Bishon said it was important that they were solvent.
And he said it would be “a lot of fun” if he was still in the business.