The missing component here was not using a splat route. I changed the code as follows and it worked (only thing changed was adding the star * )-
var childRouter = router.createChildRouter()
.makeRelative({
moduleId: 'viewmodels',
route: '',
fromParent: true
}).map([
{ route: '*AccessDenied', moduleId: 'AccessDenied', title: 'AccessDenied', type: 'intro', hash: '#AccessDenied', nav: true },
{ route: '*LCPost', moduleId: 'LCPost', title: 'LCPost', type: 'intro', hash: '#LCPost', nav: true }
]).buildNavigationModel();