Australian (ASX) Stock Market Forum

Storm Financial Group

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pegasus said:
Because Scattini never looked at litigation against the Bank (CBA is all he is dealing with)...he wanted his name in lights and an easy $10mil to 'negotiate' a deal that is worse than the actual margin contract the Bank and clients agreed to. He was given mountains of evidence to launch a case but did not use it or decide to go down the letigious route. I heard testimony from Shaun McArdle about taped evidence he offered Scattini a number of times and he didn't want it.

Instead he decided to hold secret meetings with the people who were paying him (CBA), take no direction from his clients (ex-Stormers), and let the CBA set the rules on how the whole game would be played!!! He then let the Bank call his clients without legal representation and find out everything they could about them before coming to an agreement.

Solly, I am sure you have been around long enough to know who pays the piper calls the tune - S&G are totally compromised, took the easy way out and I believe clients are starting to realise it. What else could you expect from an Ambulance chaser?

Point is case...in the Goodridge case it was determined that 'may give a margin call' (written in contract) constitutes 'must give a margin call'. The lender (CGI) cannot obligate another to give the call (that is, Storm should have done it). It was also determined the margin call must be done in writing (phone call will not suffice). In the Storm case, none of this occurred as it should have as determined in the Goodridge case.

The argument that "many people didn't have the funds for a margin call anyway" does not hold water because there was no margin call given. If the investor was given a margin call in writing and the correct time to fix it and then couldn't, the Bank can sell secured assets to remedy the situation...but clients were not give the opportunity and that is where the contract has been breached by the Bank. "Didn't have the funds anyway" is fallacious...in my slang, 'too bad you're stuffed anyway take what you are given'.

I don't believe there has been precedent until the Goodridge case (could be wrong)...but this is all very pertinant to the Storm case.
Click to expand...

pegasus, thanks for your views on this and putting a different angle on the events. This issue of the margin calls or lack thereof has always been a point that I would like more clarity.
 
Solly said:
pegasus, thanks for your views on this and putting a different angle on the events. This issue of the margin calls or lack thereof has always been a point that I would like more clarity.
Click to expand...

Solly, my pleasure...the whole sorry saga is getting very interesting from a legal point of view and I believe that is where you will get clarity on margin call obligations. Personally I believe the best outcome will be achieved if contract law is upheld and that will only happen in court. This is far from over.
 
Re: Ignorance

pennywise said:
Upon recently stumbling across this web site I was pleasently surprised, although reading some of the recent postings on your site regarding Storm Financial I have found that most of your members seem to be ill informed. I have been an investor with Storm for the last 4 years and have found this company to be nothing less than fantastic. Anyone that finds themselves invested in the stock market in these economic times will be finding it difficult, some more than others. Whilst reading some of the comments made by members of this site it sickens me to think that you can be so ignorant to the facts in this matter. Throughout this ordeal we have been in constant contact with Storm with updates on ours and their postion. I'm sure if you asked Coloniel lending some of the tougher questions being thrown Storms way you would have a greater understading of the mess in which Storm finds themselves. As for Storm taking it's clients on a fully paid for overseas holiday to Africa, this is nothing but utter rubbish. Anyone who choose to go on this trip was self funded. Remember not everthing that the media writes is gosspel. We should all be aware of the gossip mongering that has been created throughout this controversay. I, as a client of Storm Financial will be with them all the way.
Here's to a better economic year ahead!:)
Click to expand...

This is a post from late 2008.

It may be worthwhile for us all to read back through the thread from day 1, as there are many gems therein.

gg
 
pegasus said:
Point is case...in the Goodridge case it was determined that 'may give a margin call' (written in contract) constitutes 'must give a margin call'. The lender (CGI) cannot obligate another to give the call (that is, Storm should have done it). It was also determined the margin call must be done in writing (phone call will not suffice). In the Storm case, none of this occurred as it should have as determined in the Goodridge case.
Click to expand...
This assertion is in direct contradiction to advice from Tucker and Cowen, Solicitors for the liquidators, as I posted a couple of pages ago following a link supplied by Solly:
4. Terms and conditions need to be read carefully. Most of Storm’s clients had margin loans through the Commonwealth Bank of Australia. The Commonwealth Bank’s terms and conditions provide the bank is not actually obliged to make any margin calls at all, and it is up to clients to monitor their own investments. Therefore, as always, be aware of the fine print.
Click to expand...
 
Julia said:
This assertion is in direct contradiction to advice from Tucker and Cowen, Solicitors for the liquidators, as I posted a couple of pages ago following a link supplied by Solly:
Click to expand...

Julia, from the current T&Cs at

https://www.colonialgearedinvestments.com.au/adviser/docs/forms/CML_TCs.pdf

Notice of Margin Call
4.3 (a) You agree that we may provide notice of margin call by any
or all of the following ways to you or your Client Adviser:
• In writing (including by fax, email or other electronic
means)
• Orally, including by telephone
• Updating the Colonial Geared Investments website.
(b) It is your obligation to keep your or your Client Adviser’s
contact details up to date.
4.4 You are responsible for:
(a) monitoring your portfolio and determining when your loan is
subject to a margin call; and
(b) being in a position to receive any communications from us
in relation to this clause and to act within the time limits
specified in this clause; and
(c) ensuring that a margin call does not occur.
4.5 If you do not meet a margin call:
(a) we may (but are not obliged to) sell any, or all of the security
supporting your loan and reduce the amount owing.
(b) we may, if we consider it necessary or prudent to do so,
sell more security than the minimum required to satisfy the
margin call.
(c) we may sell security without first contacting you, any margin
call contact, or agent you may have nominated.
(d) we may sell security in the order we choose.
 
Grey Ghost said:
Whilst on the face of it that idea has some merit bunyip if you are suggesting stormers should go to this legal firm manny is recommending what I think would really put peoples noses out of joint is that manny (who has only ever looked after his own interests at the expense of everybody else's) has almost certainly got an arrangement in place where he would get a kickback/spotters fee call it what you like for every person who signed up with this crowd. Naturally that fee would have to be paid from somwhere ie. any payout the person MAY eventually recieve (naturally it would be well disguised as some sort of legal fee/expense). Thus he would continue to line his pockets at his victims expense whilst pretending to be helping them. :mad:






G Ghst
Click to expand...

No mate, I'm not suggesting that Stormers should contact the law firm recommended by Cassamatis. I'm just curious to know if any of them will. But I think I already know the answer.

Like you, I strongly suspect that he has some arrangement with that law firm to line his own pockets. He's hardly recommending them from the kindness of his heart or out of concern for his ex clients. He was clearly lacking concern for his clients when he took no defensive action to save their investments during the bear market, so I really can't see him having any concern for them now. His concern is for himself.
 
Julia said:
This assertion is in direct contradiction to advice from Tucker and Cowen, Solicitors for the liquidators, as I posted a couple of pages ago following a link supplied by Solly:
Click to expand...

Firstly, it is not an assertion - it is a determination (ruling) by the Federal Court of Australia which then sets precedence for following cases of a similar nature;

Secondly, T&C can give any advice they like - doesn't mean it is right - and definitely not after being tested in court as per the ruling referred to. Not withstanding an Appeal and it being overturned of course;

Thirdly, thanks to Solly posting the Terms for a margin call, shows the Bank writes these things to suit themselves (some would say legally ambiguous) but a determined person with a combative nature and good legal advice holds some hope the little people of the World may get some justice. The Goodridge case tested and determined most of the points in the Terms as invalid. That is, CGI can't oblige others (Storm) to make the call or look after it themselves (Stormers) off the website. The call MUST be in writing giving the appropriate time by the lender (CBA/CGI). If I was the CBA/CGI I would be worrying.
 
Solly said:
Julia, from the current T&Cs at

https://www.colonialgearedinvestments.com.au/adviser/docs/forms/CML_TCs.pdf

Notice of Margin Call
4.3 (a) You agree that we may provide notice of margin call by any
or all of the following ways to you or your Client Adviser:
• In writing (including by fax, email or other electronic
means)
• Orally, including by telephone
• Updating the Colonial Geared Investments website.
(b) It is your obligation to keep your or your Client Adviser’s
contact details up to date.
4.4 You are responsible for:
(a) monitoring your portfolio and determining when your loan is
subject to a margin call; and
(b) being in a position to receive any communications from us
in relation to this clause and to act within the time limits
specified in this clause; and
(c) ensuring that a margin call does not occur.
4.5 If you do not meet a margin call:
(a) we may (but are not obliged to) sell any, or all of the security
supporting your loan and reduce the amount owing.
(b) we may, if we consider it necessary or prudent to do so,
sell more security than the minimum required to satisfy the
margin call.
(c) we may sell security without first contacting you, any margin
call contact, or agent you may have nominated.
(d) we may sell security in the order we choose.
Click to expand...

As usual Solly you have identified the nuts. Manny is running with his advice quite strongly and the show ain't over until the fat lady sings.

Are you still on for the pool level units at Lennons, for the criminal trial in 2011? I believe its called Chifleys or some other orbation of a name now.

gg
 
Garpal Gumnut said:
As usual Solly you have identified the nuts. Manny is running with his advice quite strongly and the show ain't over until the fat lady sings.

Are you still on for the pool level units at Lennons, for the criminal trial in 2011? I believe its called Chifleys or some other orbation of a name now.

gg
Click to expand...

gg, sounds like there are some quite entertaining times ahead, I hope my current program of works allows me some free time in '11.

By concidence I've had an overnighter in BNE and I'm on my netbook having a coffee in mall just down from Lennons atm. I'll check out what their bookings are like for next year before I go back to my room to watch The Insiders.

The hotel looks like this these days...
 

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From today's "Sunday Mail"

The husband and wife founders of Storm Financial continue to live in the lap of luxury while former investors face an agonising decision whether to accept a compensation deal or risk everything to get back their portfolios.

Storm founder Emmanual Cassimatis claimed to have lost everything when the company went into liquidation in January last year.

Mr Cassimatis said at the time his family had been wiped out by the collapse and faced an "orderly" selldown of their assets.

But 14 mnths later, Emmanuel and Julie Cassimatis continue to live in their Belmont mansion in Brisbane's east, surrounded by luxuries including a driving range and helipad.

The Cassimatis mansion in Townsville has been on the market since April 2009, with real estate agent Gary Byrnes not commenting on any offers.

Mr Cassimatis is still a part owner of more than 700ha of land near Townsville that was converted from sugar cane to trees amid the carbon credit scheme.

Late last year Julie Cassimatis was found to be buying back their furniture and other goods through auction site Grays Online.
There is no word if they have sold their private jet which was up for sale in the US.

In an email last week, Mr Cassimatis urged clients to reject an offer negotiated by law firm Slater & Gordon.

About 250 former Storm Financial clients attended a meeting in Redcliffe yesterday held by law firm Levitt Robinson.
Click to expand...
 
bunyip said:
No mate, I'm not suggesting that Stormers should contact the law firm recommended by Cassamatis. I'm just curious to know if any of them will. But I think I already know the answer.
Click to expand...

Sorry mate I got the wrong end of the stick on that one. Hopefully stormers will give it a wide berth though.
I'd be interested to know what SICAG'S take on manny's offer is.

bunyip said:
Like you, I strongly suspect that he has some arrangement with that law firm to line his own pockets. He's hardly recommending them from the kindness of his heart or out of concern for his ex clients. He was clearly lacking concern for his clients when he took no defensive action to save their investments during the bear market, so I really can't see him having any concern for them now. His concern is for himself.
Click to expand...

Couldn't agree more.

G Ghst
 
"Investors sues Macquarie Bank over Storm"

"A multimillion dollar claim has been filed against Macquarie Bank by a former Storm Financial client who had his stock portfolio sold out from underneath him."

Read more by Marsha Jacobs in the Australian Financial Review Mar 10, 2010.
 
Re: Ignorance

Originally Posted by pennywise
Upon recently stumbling across this web site I was pleasently surprised, although reading some of the recent postings on your site regarding Storm Financial I have found that most of your members seem to be ill informed. I have been an investor with Storm for the last 4 years and have found this company to be nothing less than fantastic. I, as a client of Storm Financial will be with them all the way.
Here's to a better economic year ahead!


Garpal Gumnut said:
This is a post from late 2008.


It may be worthwhile for us all to read back through the thread from day 1, as there are many gems therein.

gg
Click to expand...

Presumably Pennywise has by now changed his/her opinion about Storm Financial being 'nothing less than fantastic'!
 
"Αυστραλία: Ομογενείς επενδυτές έχασαν τις αποταμιεύσεις τους λόγω πτώχευσης ομογενειακής εταιρίας"

"Και ομογενείς επενδυτές συμπεριλαμβάνονται στον κατάλογο αυτών που έχασαν χρήματα λόγω της πτώχευσης της ομογενειακής εταιρείας παροχής οικονομικών υπηρεσιών "Storm Financial Organisation", που άνηκε στον Μανώλη και την Ιουλία Κασσιμάτη."

Here's some international coverage of the Storm saga from;
http://omogeneia.ana-mpa.gr/press.php?id=9210

If you have some spare time run the link through Babel Fish or Google for an entertaining translation.
 
Solly said:
"Αυστραλία: Ομογενείς επενδυτές έχασαν τις αποταμιεύσεις τους λόγω πτώχευσης ομογενειακής εταιρίας"

"Και ομογενείς επενδυτές συμπεριλαμβάνονται στον κατάλογο αυτών που έχασαν χρήματα λόγω της πτώχευσης της ομογενειακής εταιρείας παροχής οικονομικών υπηρεσιών "Storm Financial Organisation", που άνηκε στον Μανώλη και την Ιουλία Κασσιμάτη."

Here's some international coverage of the Storm saga from;
http://omogeneia.ana-mpa.gr/press.php?id=9210

If you have some spare time run the link through Babel Fish or Google for an entertaining translation.
Click to expand...

Η κατοχή είναι εννέα δέκατα του νόμου.

gg
 
pegasus said:
Solly, my pleasure...the whole sorry saga is getting very interesting from a legal point of view and I believe that is where you will get clarity on margin call obligations. Personally I believe the best outcome will be achieved if contract law is upheld and that will only happen in court. This is far from over.
Click to expand...

Does anyone know how long Macquarie Bank has to appeal?
Is there are stanard length of time for that appeal to take place?
Basically how many years can Macquarie keep it going in the courts?
Thank you.
 

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