Storm Financial Group

Solly · 20 August 2009

"ANZ calls for professionalisation of planning"

"The ANZ Banking Group has admitted elements of failure in its dealings with Opes Prime and Storm Financial at the same time as calling for the greater professionalisation of the financial planning industry."

More by Mike Taylor in Money Management here;

http://www.moneymanagement.com.au/article/ANZ-calls-for-professionalisation-of-planning/494884.aspx

Solly · 20 August 2009

"Bank to be hit with writ over Storm"

"Bank of Queensland will today be served with a writ by a former investor in collapsed adviser Storm Financial after it failed to respond to demands for a negotiated settlement."

Read more in The Australian Financial Review of Thursday, 20 August 2009 by Duncan Hughes

Solly · 20 August 2009

"ANZ makes admission on Storm"

"Australia and New Zealand Banking Group has followed the Commonwealth Bank of Australia and admitted its lending practices to clients of collapsed adviser Storm Financial could have contributed to investor losses, which are estimated to have topped $3 billion."

Read more in the The Australian Financial Review of Wednesday, 19 August 2009 by Duncan Hughes.

Solly · 20 August 2009

"BoQ faces Storm test"

"LAWYERS will launch legal action alleging unconscionable conduct against one of the key lenders in the Storm Financial debacle today, a meeting of more than 500 investors in the failed wealth advisor was told last night."

Also it is also reported;

S&G to chase Storm's $25 million public indemnity insurance
Director's insurance may be voided
Directors & Auditors to be pursued

More by Tony Raggatt in the Townsville Bulletin here;

http://www.townsvillebulletin.com.au/article/2009/08/20/72935_hpnews.html

abagnale · 20 August 2009

Solly said:
"BoQ faces Storm test"

"LAWYERS will launch legal action alleging unconscionable conduct against one of the key lenders in the Storm Financial debacle today, a meeting of more than 500 investors in the failed wealth advisor was told last night."

Also it is also reported;

S&G to chase Storm's $25 million public indemnity insurance
Director's insurance may be voided
Directors & Auditors to be pursued

T
More by Tony Raggatt in the Townsville Bulletin here;

http://www.townsvillebulletin.com.au/article/2009/08/20/72935_hpnews.html

This was my point in a previous post about having systems in place to check compliance. I trust any allegations of fraud as mentioned in the article are being fully investigated. The last paragraph describing the ex-clients state and disposition is quite disturbing.
Seems a very hard way to get a fiscal education. Best of luck Stormies.

Ironhalo · 20 August 2009

Interesting comments about the stashes of money these guys may have hidden...Bali? Jewelery?

Good to see they are keeping the pressure on, I can't wait to see 'Casa Belmont' sold for a song, and Cassimatis in the dole queue.

bunyip · 20 August 2009

Ironhalo said:
Interesting comments about the stashes of money these guys may have hidden...Bali? Jewelery?

Good to see they are keeping the pressure on, I can't wait to see 'Casa Belmont' sold for a song, and Cassimatis in the dole queue.

Interesting, yes, but a low act on the part of Damian Scattini to publicly spread rumours about Cassamatis having stashes in Bali and buried in the backyard.
Very unprofessional conduct from Scattini that does him no credit at all.

As for Cassamatis in the dole queue, I wouldn't be holding my breath.
Asset protection is a growth industry - I'd be surprised if Cassamatis doesn't have a nice little trust set up where he's been shovelling assets that are untouchable because they're not in his name.
I remember similar 'dole queue' comments when Bondy went broke. The reality was that the 'broke' Alan Bond was worth millions of dollars that had been siphoned off into various untouchable entities. Untouchable, that is, by the authorities and the liquidators and the general public, but not untouchable by Bond himself.
Oh no...Bondy was a smart man who had it all figured out and had taken steps to protect many millions of his dollars. Bond ending up in the dole queue was about as likely as me ending up in Canberra as Prime Minister.
My guess is that it won't be any different with Cassamatis.....there's no chance of seeing him in a dole queue. More's the pity.

Ironhalo · 20 August 2009

Yeah too right mate.

We all know it's not going to happen, but wishful thinking....

Mash · 20 August 2009

Yes Bondi and co. may have syphoned his assets off to the relations... manny and julie both directors.... hopefully all assets in one or the other's name (JC of Belmont may not get to keep all of her most cherished and paid for twice posessions .....LOL)..... getting narky....may both of them rot in hell!!!!... I can but dream..... for if I can not dream then only the nightmares will prevail!!!
between the administrators... ASIC and the inquiry..let's hope justice will prevail...and for all you nay sayers.... I don't care what you say 'cause way back in the beginning you said this would all come to nothing..... How wrong you were!!!!!!.
WE WILL FINISH STRONG!!!!!
Oh and BTW.... ANZ now admitting fault!!!!!!...lol...lol....lol...told ya so!!!!!!!!!!
Yeah I know childish.... but don't care... she who laughs last.... laughs loudest!!!!!!
GOY'self.....

Julia · 20 August 2009

DocK said:
And that's all well and good in theory - but what some of you don't seem able to grasp is that not every Australian in need of financial guidance is capable of managing their own affairs - for various reasons, but lack of knowledge would be the main one. How do you bounce ideas off a mentor if you simply don't have any ideas to start with? I know it shouldbe possible for all of us to run our own investments - but some folk simply lack the intellect and/or ability/confidence/whatever. I've nothing but respect for those of you who have spent years handling your own financial decisions - but not everyone has that ability. Some people would definitey be better off if never allowed to make their own decisions. Part of paying for a plan would involve being educated about the myriad choices that exist. Sometimes it pays to have someone point out to you what it is that you don't know. Young people's financial direction could be altered drastically by sitting down and discussing with a qualified planner what their goals and financial aspirations are, and learnng the options available to acheive them. In an ideal situation parents/schools provide basic info re budgeting, saving, etc - but we all know this doesn't always happen in the real world.

Those are reasonable comments. I have several friends who are very intelligent, all tertiary educated, successful in their own career fields, but woefully ignorant about financial matters. I don't really know why this is, but my attempts to interest them in putting their money to work is met with "oh yes, I know you're right. I should be doing something, but I'm afraid of the share market".

There is some work being done in the schools re financial education, at least via a friend who is an accountancy teacher in our local high school. It's not part of the curriculum and she devised her own series of workshops on bank accounts, good and bad debt, budgeting etc.

I'm on the board of a youth shelter which accommodates usually around 20 young people, aged 16 - 20, who can't live at home for various reasons.
We offered them the option of budgeting/financial management and only two indicated even vague interest. These kids would have had no positive modelling from their parents and this is where the problem begins.

[

Solly · 21 August 2009

"Storm Financial taken to court by retired school teacher"

"A RETIRED Townsville school teacher in poor health is the first devastated investor to file a suit after the demise of advisory firm Storm Financial."

More by Anthony Marx in The Courier Mail is here;

http://www.news.com.au/couriermail/story/0,23739,25958136-3122,00.html

Solly · 21 August 2009

A submission of interest to the

Inquiry into Financial Products and Services in Australia

http://www.aph.gov.au/senate/committee/corporations_ctte/fps/submissions/sub375.pdf

Solly · 21 August 2009

"Hope for Storm Financial victims"

"OUT of pocket Storm Financial investors heard last night they may have some hope of retrieving money from the banks that pulled the plug on the failed investment firm."

More by Roger Dickinson in cairns.com.au;

http://www.cairns.com.au/article/2009/08/21/59631_local-news.html

Solly · 21 August 2009

"National network gives Slater & Gordon 12.9pc boost"

"Listed law firm Slater & Gordon has reported another bumper year of financial results, buoyed by its continued diversification away from personal injury claims to major litigation involving pharmaceutical giant Merck, Centro Properties Group, Storm Financial and Opes Prime."

Read more by Alex Boxsell in The Australian Financial Review of Friday, 21 August 2009.

Solly · 21 August 2009

"BoQ finally owns up to Storm risks"

"Bank of Queensland has publicly admitted for the first time that it faces financial, reputational and regulatory risks arising from its involvement with Storm Financial, the Queensland-based financial adviser that collapsed with losses estimated at about $3 billion."

Read more by Duncan Hughes in The Australian Financial Review of Friday, 21 August 2009.

Solly · 21 August 2009

"BoQ will defend Storm test case"

"THE Bank of Queensland says it will defend accusations of improper lending to a Townsville victim of the Storm Financial crisis as a test case for hundreds of similar claims was lodged in Brisbane's Supreme Court yesterday."

Read more by Tony Raggatt in the Townsville Bulletin here;

http://www.townsvillebulletin.com.au/article/2009/08/21/73125_hpnews.html

abagnale · 21 August 2009

bunyip said:
Interesting, yes, but a low act on the part of Damian Scattini to publicly spread rumours about Cassamatis having stashes in Bali and buried in the backyard.
Very unprofessional conduct from Scattini that does him no credit at all.

As for Cassamatis in the dole queue, I wouldn't be holding my breath.
Asset protection is a growth industry - I'd be surprised if Cassamatis doesn't have a nice little trust set up where he's been shovelling assets that are untouchable because they're not in his name.
I remember similar 'dole queue' comments when Bondy went broke. The reality was that the 'broke' Alan Bond was worth millions of dollars that had been siphoned off into various untouchable entities. Untouchable, that is, by the authorities and the liquidators and the general public, but not untouchable by Bond himself.
Oh no...Bondy was a smart man who had it all figured out and had taken steps to protect many millions of his dollars. Bond ending up in the dole queue was about as likely as me ending up in Canberra as Prime Minister.
My guess is that it won't be any different with Cassamatis.....there's no chance of seeing him in a dole queue. More's the pity.

I also found the comments from Mr Scattini a bit strange, I suppose a little theaterical posturing is good for his clients.
After reading and following this saga in the media for sometime I reckon that the total collapse came as an unexpected shock to the directors.
Let's hope everything comes out in the open about the real inputs and sequence of events that lead to this spectular crash.

Jifromoz · 21 August 2009

Hi Everyone,
Have been lurking reading all of the submissions. Solly, you are doing a terrific job putting in the links for the enquiry and news articles. Very much appreciated.

I have just noticed that BOQ have made the following announcement on the ASX today

"Statement from Bank of Queensland regarding claim filed by Slater &
Gordon 21 August 2009
The Bank has received a claim in respect of a former BOQ customer and former client of Storm Financial.
The claim relates to a single loan and is not considered financially material to the Bank. As proceedings have been commenced, the Bank will seek advice and deal with the claim in the normal course."

A touch of arrogance I think.

I will watch closely how they handle this going forward. I think the blow torch may soon be turned up another level by those affected by this.

Solly · 21 August 2009

"BoQ receives Storm Financial claim; shares plunge 5.3%"

"Bank of Queensland Ltd (BOQ) shares plunged ....after the lender said it had received a claim from a former customer regarding failed Townsville financial firm Storm Financial."

More here in Business Speculator;

http://www.businessspectator.com.au/bs.nsf/Article/BOQ-receives-claim-regarding-Storm-Financial-pd20090821-V549S?OpenDocument

Trevor_S · 21 August 2009

Solly said:
"Storm Financial taken to court by retired school teacher"

"A RETIRED Townsville school teacher in poor health is the first devastated investor to file a suit after the demise of advisory firm Storm Financial."

mmmm for someone professing an appetite for low risk

Ms Rubin also borrowed $602,000 in a margin loan from Macquarie Bank

her words and her actions don't quite add up ?

Storm Financial Group

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