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Storm Financial Group

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Three articles of interest from the Townsville Bulletin

"ASIC targets Storm, banks"
"THE directors of collapsed Townsville financial services company Storm Financial and the banks that worked with them are to face court action."

http://www.townsvillebulletin.com.au/article/2010/11/27/187991_news.html


"Watchdog's findings give widow comfort"
"A TOWNSVILLE widow who invested a $600,000 payout she received from the death of her husband..."

http://www.townsvillebulletin.com.au/article/2010/11/27/187981_news.html


"Finally, a ray of light"
"THE Storm Investors' Compensation Action Group says the Australian Securities and Investments Commission's decision to bring charges...."

http://www.townsvillebulletin.com.au/article/2010/11/27/188011_news.html
 
pedroelpedro said:
I've avoided making comment in this public forum so far as to avoid staying out of any news articles, but hey, you only live once.

Just to set the record straight on a few things:

* Phormula was not useless. It worked and it did exactly what it was designed to do. It correctly reported client positions, if the data put into it was correct and maintained. It was also designed to do many other things, some modules of which were used by Storm and some which were not.
* Phormula was not written in C++, it was written in VB.NET
* Emmanuel and Julie Cassimatis have always owned Phormula and still do.

That's all I plan to say for now, I would appreciate any personal criticisms of myself or my family to be kept to a minimum. This forum has always taken a negative tone and all of us, both employees and clients (of which I was included in both categories), have been unfairly treated.

Regards,
Paul Rubin

P.S. I welcome the ASIC release on Friday, though like many am discouraged that legal proceedings continue to be dragged out over such a long period of time.
Click to expand...

Paul, I don't know if you have revisited this forum but I believe that you have made a comment of considerable significance.

If your statement is in fact correct that Phormula was scoped to actually provide correctly reported client positions, this to me appears to be at odds with what was stated at the Hearing before Deputy Registrar Baldwin.

Have you given the details of this information to ASIC ?
 
"ASIC MUST FOLLOW THROUGH ON STORM LITIGATION"

"The chair of last year’s parliamentary inquiry into the financial services industry, Labor MP Bernie Ripoll (pictured), has reinforced the need for the Australian Securities and Investments Commission (ASIC) to follow through “with the full force of the law” when it comes to those found guilty of wrongdoing where Storm Financial clients are concerned – regardless of the agreed compensation deals."

More by Lucinda Beaman in Money Management here;

http://www.moneymanagement.com.au/news/asic-must-follow-through-on-storm-litigation
 
Solly said:
"WHY WE DID NOT ACT ON STORM - ASIC CHAIRMAN"

"Australian Securities and Investments Commission (ASIC) chairman Tony D’Aloisio (pictured) has sought to defend the regulator from criticism directed at it by retail investors amid the fallout from the global financial crisis (GFC)."

More by Mike Taylor in Money Management here;

http://www.moneymanagement.com.au/news/why-we-did-not-act-on-storm---asic-chairman
Click to expand...

So he is basically saying that Storm investors were greedy.

However he fails to take in to account the lack of financial sophistication of the folk that Manny persuaded in to his scheme.

Australian Securities and Investments Commission (ASIC) chairman Tony D’Aloisio (pictured) has sought to defend the regulator from criticism directed at it by retail investors amid the fallout from the global financial crisis (GFC).

Addressing a meeting in Sydney, D’Aloisio claimed the ultimate risk for the success or failure of an investment was a matter for the market, with shareholders and underwriters and other investors carrying that risk as they managed it through such strategies as asset diversification and assessing risk-reward premiums.

“This system and approach was well understood by institutional investors, but [less so] by retail investors,” he said. “As a result, some retail investors have been disappointed at ASIC’s performance.”

However D’Aloisio claimed that at the heart of such disappointment was “an expectation gap in risk taking”.

“There is an expectation that ASIC should have prevented some of the corporate collapses that occurred during the GFC and, once the losses occurred, ASIC should have more quickly recovered money and punished wrongdoing,” he said.

D’Aloisio said the challenge for the regulator was to make clear just what it could and could not do.

“For example, you get with the benefit of hindsight calls that ASIC was aware that Storm Financial was in the market and we should have closed it down,” he said.

“This disregards just what powers ASIC has,” D’Aloisio said. “At the height of the stock market, investors with margin loans were in the ‘black’. How would they have reacted to ASIC (if we had the power, which we o not) seeking to close them down?”
Click to expand...

gg
 
Asic is trying to settle approximately 30-40c in the dollar with the banks. They are kidding themselves! What a easy out for them and the banks. If they the banks are offering anything it is because they are GUILTY! No one has mentioned

PWC for their hand in assisting with the prospectus when Storm was proposing to float????? Please read their market forecasts. Interesting where they thought the market was going in 2008.

Asic sat through the education process and gave Storm the "thumbs up" for which people trusted.

Storm people must stay strong no matter how hard it gets. :eek::eek::eek::confused:
 
Attitude said:
Asic is trying to settle approximately 30-40c in the dollar with the banks. They are kidding themselves! What a easy out for them and the banks. If they the banks are offering anything it is because they are GUILTY! No one has mentioned

PWC for their hand in assisting with the prospectus when Storm was proposing to float????? Please read their market forecasts. Interesting where they thought the market was going in 2008.

Asic sat through the education process and gave Storm the "thumbs up" for which people trusted.

Storm people must stay strong no matter how hard it gets. :eek::eek::eek::confused:
Click to expand...

Attitude, mate, are SICAG still sniffing Manny's line of bull****, do you know?

gg
 
Solly said:
"Nine-solicitor firm takes on Macquarie"

"Levitt Robinson has issued a letter to the Macquarie Bank CEO that foreshadows its intention to include the bank in its ongoing Storm Financial class action."

More in Lawyers Weekly here;

http://www.lawyersweekly.com.au/blogs/top_stories/archive/2010/11/30/nine-solicitor-firm-takes-on-macquarie.aspx
Click to expand...

Let me guess, Macquarie declined to reply..... I cannot wait to hear the dribble that spills forth when someone from Mac Bank is put on the stand. I have heard plenty of it already, I just wonder if they will be willing to spin the same BS in court!!

Eventually these banks will be made to pay, IMHO the sooner they deal with this and move on, the cheaper it will be for them.
 
Garpal Gumnut said:
Attitude, mate, are SICAG still sniffing Manny's line of bull****, do you know?

gg
Click to expand...

Nothing to do with SICAG or Cassamatis - never want to either. I'm only after my money back. This is starting to gain momentum! I hope this ends up on the front page of every newspaper as it will expose all involved for there grubby behaviour.:rolleyes:
 
Solly said:
"Storm noose tightens"

"THE peak body for financial planners, the Financial Planning Association, has found Storm Financial founder Emmanuel Cassimatis engaged in misleading and deceptive conduct by telling clients sharemarket returns averaged 13 per cent when he knew they were"

More by Tony Raggatt in the Townsville Bulletin here;

http://www.townsvillebulletin.com.au/article/2010/12/03/189411_news.html
Click to expand...

Also as stated in this article : -

The association's expert panel also found the investment strategy devised by Mr Cassimatis was unsustainable and that it was Storm's advice and not the actions of the banks that caused investors' huge losses.

The findings, contained in a report by the association into Storm, is damning for Mr Cassimatis who has long claimed, along with some of his loyal investors, that it was the banks and not Storm who were to blame for investor losses of $3 billion.
Click to expand...

These "findings" don't bode well for the prospects of any ASIC action that may be taken against the Banks.
 

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