Storm Financial Group

[Frank Ainslie]

Hi All,

At the moment I am somewhat preoccupied with other matters. However, before our case is heard In September I will be outlining for everyone the many issues that lie at the heart of Storm's clients' legal actions against the Commonwealth Bank, the Mac Bank and the Bank of Queensland.

By my identifying the many known transgressions of these particular Banks, it should enable you all to have a clearer understanding of our position.

 

[Garpal Gumnut]

Hi All,

At the moment I am somewhat preoccupied with other matters. However, before our case is heard In September I will be outlining for everyone the many issues that lie at the heart of Storm's clients' legal actions against the Commonwealth Bank, the Mac Bank and the Bank of Queensland.

By my identifying the many known transgressions of these particular Banks, it should enable you all to have a clearer understanding of our position.

Thanks Frank,

I trust all is well with you and yours.

gg

 

[Frank Ainslie]

Thanks Frank,

I trust all is well with you and yours.

gg

Hi GG,

Yes, all is well! Thanks for asking!

The moment of truth is fast approaching for we Stormies! I guess now is the time to be philosophical about our fate and accept that this now all lies in the lap of the gods.

For all those like us that are wondering what their futures hold, I have always found the following words comforting:

" It is my fate to be in between Heaven and Earth. If I resist my fate, I suffer. If I accept it, I am happy. I have time in abundance, an eternity to repeat my mistakes, but I need only once correct my mistake, and at last I will hear the song of enlightenment… It's the song my spirit has been singing since the moment of my birth. If nothing happens without cause, then the gift of suffering is to bring us closer to God, to teach us to be strong when we are weak, to be brave when we are afraid, to be wise in the midst of confusion, and to let go of that which we can no longer hold. Lasting victories are won in the heart rather than external.”

Whatever happens, it is up to us as individuals to make the best of it and go on. Helen and I will do just that.

Between now and the trial there is little more to say. However, the trial itself promises to be a battle royal and there should be much to discuss once the preliminaries are out of the way. Before then, I will outline our position as far as the Banks are concerned.

 

[StumpyPhantom]

All the best to you and your family, Frank. Thank you for your informative posts, I have learnt a lot, and I couldn't help feeling right through it that the fraud being perpetrated was through the glitzy marketing efforts Storm went to, right down to the cheery faces in their waiting room spruiking their product. It would be interesting if the marketing/PR organisation that got the Storm gig received written instructions about how to create the psychological forces to induce this, and even more interesting if the banks were brought into the loop on this.

 

[bunyip]

When I pay someone who advertises on TV as storm did to come in and see them and they would look after us financially, I expected just that and paid them darn good money for their so called 'expertise.'

I’m surprised to hear that Storm advertised on TV. I never saw Storm ads in any of the media outlets. One of their claims was that they didn’t advertise, but relied on word of mouth recommendations from clients. But then Storm was always pretty good at saying things that weren’t true.

 

[maccka]

I’m surprised to hear that Storm advertised on TV. I never saw Storm ads in any of the media outlets. One of their claims was that they didn’t advertise, but relied on word of mouth recommendations from clients. But then Storm was always pretty good at saying things that weren’t true.

Storm definitely did advertise on TV. The advert I particularly remember had EC sitting at his desk saying something along the lines of "Even if you don't see us make sure you see someone!"

They did a lot of blitz advertising. You'd go through periods where you would see a lot of their ads and then nothing for a while. Sometimes you'd see the same advertisement twice in the same commercial break.

cheers
Maccka

 

[asproboy]

Storm definitely did advertise on TV. The advert I particularly remember had EC sitting at his desk saying something along the lines of "Even if you don't see us make sure you see someone!"

cheers
Maccka

Wow, that's devilishly clever - befitting Manny's manipulative prowess. Not only does he present a pious image for potential clients, he becomes a benefactor to other financial planners in the region who dare not speak up against the person with the deep pockets, even if they're stymied by how he can be making so much money!

 

[Solly]

Heads up.

Keep your ears to the ground and keep your eyes peeled.

 

[Solly]

It was a very interesting day in the Federal Court in Brisbane yesterday.

Are there any Stormers who wish to pass a view on the Hearing?

 

[Julia]

It was a very interesting day in the Federal Court in Brisbane yesterday.

Are there any Stormers who wish to pass a view on the Hearing?

Perhaps you could tell us what happened?

 

[Harleyquin]

Our local storm firm advertised regularly on TV, had a radio spot and in the local paper. Ive only heard this 'by word of mouth' accusation since the collapse.

 

[Solly]

"LAWYERS running a class action on the $3 billion collapse of Storm Financial will put to the test claims that banks issuing low-doc loans have breached their own industry code of practice."

More here: http://www.theaustralian.com.au/bus...orm-class-action/story-fn91wd6x-1226422932175

 

[Solly]

"Storm investors urged to regroup as trial loomsTrial to begin in September
The Storm Investors Consumer Action Group has called on former Storm clients to get in contact with it so as not to miss out on the potential recovery of lost funds."

More by Kate Kachor here: http://www.investordaily.com.au/14630.htm

 

[Solly]

"Lawyers against Storm Financial buoyed"

More @ ABC PM http://www.abc.net.au/news/2012-07-...orm-financial-buoyed/4124470?section=business

 

[Frank Ainslie]

More here: http://www.theaustralian.com.au/bus...orm-class-action/story-fn91wd6x-1226422932175

Hi Solly,

Interesting!

Here's an extract that caught my eye!

"Slater & Gordon lawyer Ben Hardwick denied there were substantial issues not covered by that law firm in negotiating settlement for "over 1000" victims of the Storm collapse.
Mr Hardwick said there were very low numbers of low-doc loans among those victims. But he said loose lending practices by lenders to Storm investors was a key issue, regardless of how the lending product was branded.
"All of those issues were examined at the time," Mr Hardwick said

Sufficient doubt lingers in my mind as to whether Slater and Gordon’s approach to their clients' legal positions was ever fully considered or for that matter whether the 'Panel' of Judges set up to oversee the process considered the facts in their entirety. Further, the whole of the CBA's legal argument rested on the CBA's contention that Storm was an authorised agent for its clients. This notion was supported rather than challenged by S & G even though it is an assumption rather than a fact. In fact the CBA controlled the whole of the CBA 'Resolution Scheme' process, and S & G stood by content to let the Bank dictate the terms. They got $5,000 a pot for each client so S & G weren't too worried anyway.

It seems to me that S & G were only interested in an easy and quick settlement, quite content to accept the CBA carrot of some $250 million as an equitable outcome.. Whilst this may seem a lot to the uninitiated, it is about one tenth of what the CBA may be up for if it loses! The web these banks weave to deceive!

Can anyone out there ever recall any Bank being compassionate or magnanimous? The definition of an 'oxymoron' these days must surely be "An honest bank!'

When I tried to point out to Slater & Gordon the error of their ways back in 2009, Helen and I were promptly shown the door. I raised what I considered were some relevant legal questions which they as my lawyers should have addressed. Instead, it was "If you are not satisfied you basically know what you can do!" Indeed, it was the only time they acted with any haste dispatching my file back to me by express post in 24 hrs like a hot potato.

Frankly, I believe that questions must be raised about the CBA resolution scheme and the way it was handled by Slater & Gordon if legal wrongs are established during this trial that were not considered by that law firm at the time, but should have been evident to any law firm that gave its Storm CBA clients legal advice that they then duly acted on? For that matter, just how sound legally are any agreements reached between CBA’s customers and that Bank under the resolution scheme particularly if an UMIS is found to have existed? Can a contract or agreement be considered legal if it is based on a previous agreement that is subsequently declared to be illegal?

Perhaps S & G will come up with the “Sergeant Schultz Defence?” “I know nothing! I see nothing!”

Time for a lawyer joke, I think! “What’s the difference between a prostitute and a lawyer? A prostitute screws you while you are alive! A lawyer continues to screw you even after you are dead!”

Sorry about that but dealing with various dirt bags for the last four years has tended to make me a little cynical about the Law profession as a whole. Let’s hope our justice system, an honest law firm who is putting itself "on the line", and the collective will of those strong enough to fight back can overcome an apathetic Government in the form of Ministers that stand by and do nothing, and the Regulator that does not have the inclination or will to prosecute the CBA for anything other than UMIS. Perhaps a Royal Commission to investigate ASIC’s part in all this is called for because something certainly needs to be done to get this moribund institution to show some fight where the CBA is concerned. But then the PM only earns $350,000 or so whereas Ralph Norris got 16.2 million. Why would anyone take notice of the maid when the Master earns a fortune and she only gets ‘petty cash”?

What a way to run a country! The Banks do indeed rule!

Incidentally, for anyone that is interested, Directions Hearings at Brisbane, before His Honour, Justice Reeves, are fixed for Monday, 16 July, 2012, Tuesday, 17 July, 2012 and Wednesday, 18 July 2012.

 

[Solly]

Hi Solly,

Interesting!

Here's an extract that caught my eye!

"Slater & Gordon lawyer Ben Hardwick denied there were substantial issues not covered by that law firm in negotiating settlement for "over 1000" victims of the Storm collapse.
Mr Hardwick said there were very low numbers of low-doc loans among those victims. But he said loose lending practices by lenders to Storm investors was a key issue, regardless of how the lending product was branded.
"All of those issues were examined at the time," Mr Hardwick said

<snip>

Frankly, I believe that questions must be raised about the CBA resolution scheme and the way it was handled by Slater & Gordon if legal wrongs are established during this trial that were not considered by that law firm at the time, but should have been evident to any law firm that gave its Storm CBA clients legal advice that they then duly acted on? For that matter, just how sound legally are any agreements reached between CBA’s customers and that Bank under the resolution scheme particularly if an UMIS is found to have existed? Can a contract or agreement be considered legal if it is based on a previous agreement that is subsequently declared to be illegal?

Perhaps S & G will come up with the “Sergeant Schultz Defence?” “I know nothing! I see nothing!”

Time for a lawyer joke, I think! “What’s the difference between a prostitute and a lawyer? A prostitute screws you while you are alive! A lawyer continues to screw you even after you are dead!”


Incidentally, for anyone that is interested, Directions Hearings at Brisbane, before His Honour, Justice Reeves, are fixed for Monday, 16 July, 2012, Tuesday, 17 July, 2012 and Wednesday, 18 July 2012.

Hi Frank,

I too look forward to the Directions Hearings. Yes, it has been a long road, you mention Slater & Gordon, I couldn't help but think of Damian Scattini. I find it interesting that he fails to mention his success with the "Resoloution Scheme" in his current online biography with his current tenure;
http://www.mauriceblackburnnsw.com.au/our-people/professional/damian-scattini.aspx

S

 

[Solly]

FEDERAL COURT OF AUSTRALIA
Queensland Registry
Monday, 16 July 2012

Justice Reeves Court No. 1, Level 7

10:15 AM Judgment

1 QUD577/2010 ASIC v STORM FINANCIAL LIMITED (RECEIVERS AND MANAGERS APPOINTED) (IN LIQUIDATION) & ORS

Directions and Interlocutory Hearings

2 QUD577/2010 ASIC v STORM FINANCIAL LIMITED (RECEIVERS AND MANAGERS APPOINTED) (IN LIQUIDATION) & ORS

3 QUD590/2010 TRACEY RICHARDS v MACQUARIE BANK LIMITED

4 NSD811/2010 LESLIE JAMES SHERWOOD & ORS v COMMONWEALTH BANK OF AUSTRALIA & ANOR

 

[maccka]

FEDERAL COURT OF AUSTRALIA
Queensland Registry
Monday, 16 July 2012

Justice Reeves Court No. 1, Level 7

10:15 AM Judgment

1 QUD577/2010 ASIC v STORM FINANCIAL LIMITED (RECEIVERS AND MANAGERS APPOINTED) (IN LIQUIDATION) & ORS

Directions and Interlocutory Hearings

2 QUD577/2010 ASIC v STORM FINANCIAL LIMITED (RECEIVERS AND MANAGERS APPOINTED) (IN LIQUIDATION) & ORS

3 QUD590/2010 TRACEY RICHARDS v MACQUARIE BANK LIMITED

4 NSD811/2010 LESLIE JAMES SHERWOOD & ORS v COMMONWEALTH BANK OF AUSTRALIA & ANOR

It's a busy week in court this week. Busy times ahead in the coming months....

Cheers
Maccka

 

[Solly]

FEDERAL COURT OF AUSTRALIA
Queensland Registry
Tuesday, 17 July 2012

Harry Gibbs Commonwealth Law Courts Building
Level 6, 119 North Quay
BRISBANE, 4000

Justice Reeves Court No. 1, Level 7

Not Before 11:30 AM Directions

6 QUD590/2010 TRACEY RICHARDS v MACQUARIE BANK LIMITED

7 QUD577/2010 ASIC v STORM FINANCIAL LIMITED (RECEIVERS AND MANAGERS APPOINTED) (IN LIQUIDATION) & ORS

8 NSD811/2010 LESLIE JAMES SHERWOOD & ORS v COMMONWEALTH BANK OF AUSTRALIA & ANOR

 

[bunyip]

Came across the following from a few years back – interesting to see EC claiming that Storm had neither the capacity nor desire to completely manage the loans.

That’s quite a turnaround from EC, considering that Storm’s website talked about how they monitor/manage their clients investments so that clients don’t have to, (or words to that effect). I would have thought that managing the loans would have come under the banner of managing/monitoring clients investments.

http://www.brisbanetimes.com.au/business/storm-boss-blames-banks-for-margin-calls-20090929-ga4h.html