Storm Financial Group

[bunyip]

Find a litigation funder, put the facts before them. If it has a snow balls chance in hell they will fund it for a split of the recovered balance under some very stringent conditions. If it doesn't have a snowballs chance in hell, they will tell you not to waste your money.

A 'litigation funder'? Can you elaborate?

 

[Julia]

If unsigned documentation was accepted by the lead lender, I suspect they might have a problem with those cases.

I wasn't suggesting the documentation would have been unsigned, but rather that (as I think I read in a post from one Storm client) a bunch of papers was thrust under the client's nose - presumably following a suitable confidence-building sales spiel - and they were told, reassuringly "You don't have to worry about a thing. Just sign each of these pages and we'll take care of all the details for you."

Judging by the naivete and gullibility which many Storm clients have shown, it would have been a piece of cake to have done this.

Subsequent to the signatures, the Storm advisers could very easily have inserted whatever figures they decided.

If this does turn out to be the case, I hope they are charged with fraud and get thrown in the slammer.

 

[Solly]

"ASIC freeze $2 million payment to co-founders"

"THE co-founders of failed investment firm Storm Financial lashed out at the corporate watchdog yesterday for going to court to recover $2 million"

Also it is also reported, soccer star Robbie Fowler from North Queensland Fury has expressed an interest in the Townsville mansion;

Full story by Anthony Marx in The Courier Mail is here;

http://www.news.com.au/couriermail/story/0,23739,25041588-3122,00.html

 

[Solly]

A 'litigation funder'? Can you elaborate?

It's like using IMF, in the actions against OPES & MFS.

 

[vincent191]

I am more & more convienced that the Cassimatis couple is no more than a couple of SUPER SALESMEN.

They seems to know or care very little about regulations and obligations. In my opinion, all they care about is their own interest.

Sounds like they can sell snow to the eskimos.

 

[bunyip]

I wasn't suggesting the documentation would have been unsigned, but rather that (as I think I read in a post from one Storm client) a bunch of papers was thrust under the client's nose - presumably following a suitable confidence-building sales spiel - and they were told, reassuringly "You don't have to worry about a thing. Just sign each of these pages and we'll take care of all the details for you."

Judging by the naivete and gullibility which many Storm clients have shown, it would have been a piece of cake to have done this.

Subsequent to the signatures, the Storm advisers could very easily have inserted whatever figures they decided.

If this does turn out to be the case, I hope they are charged with fraud and get thrown in the slammer.

Talking of naivety, I'm still shaking my head almost in disbelief at the Stormer interviewed on Four Corners who told of how he borrowed 1.8 million to invest through Storm. His job income was 50k.
The interviewer, clearly curious as to how this bloke thought a 50k income could fund an annual interest bill of well over 100k, asked him how he had intended to meet the commitments on the 1.8 million loan.
His reply was 'Storm told me it would be self-funding'.
The reporter pressed him further by asking 'Did you know how that was going to happen'?
By way of reply he could only offer again 'Storm told me it would be self funding'.

No disrespect intended towards any Stormers who may have done something similar. But it almost beggars belief that someone would not put just the tiniest bit of thought into what he was about to do, by working out that 50k annually can't possibly fund well over 100k annually.

 

[pilots]

I bet the sales people was thinking this is to good to be true when they found him.

 

[willemrt]

It looks like there might be another Storm, this time in Victoria!

http://www.moneymanagement.com.au/article/A-new-Storm-brewing/437840.aspx

 

[Smiley]

Storm Financial was a con and we accept responsibility for being caught. Cassimatis has a delusional approach to planning; maybe he believed the banks would support unsecured loans and gambling business practices. How many times did his businesses go broke before Storm - at least once, quite possibly twice? There was the same strategy for all clients - sell your home and invest in the share market. Or mortgage your houses/business to 80%+ and add on huge margin loans. Debt was viewed as an asset. Storm especially liked those close to retirement/retirees with savings; they would take any accessible super and invest it in shares. When asked, 'advisers' knew nothing about other avenues for investment. The strategy was to increase margin loans and house mortgages; to get more fees. We were told "trust us", "it's safe"; the stress on repeating such phrases, has been confirmed by ex employees who relate the Storm approach to that of a cult - with special secrets to life happiness. We were in because family and friends recommended them and we began doubting lots of things and talked about getting out. In the first half of 2008, when we tried to get out, and sell our portfolios, Storm blocked us. Storm had minimal PI insurance and they have ruined the lives of thousands of people. Storm geared clients to such high levels that we were doomed with even a small drop in the market. Clients were in a dire situation long before the market got to where it has been in 2009 - at approximately 4,800 for us. The lies continued when our "equity was turned into cash" as we were told we were taken out with our portfolio being worth more than our debt; but it wasn't. We were not greedy but the aim was to become self funded retirees; to ensure our financial future. Now we will be homeless (if we clear our debt). I was thinking of posting this on the Cassimatis website: "Can we camp on your lawn in Brisbane Manny, as you still have a house; and since your such a champion of ex-Storm clients?" imp:

 

[vincent191]

I don't sense one iota of regret or remorse from that couple. In their mind it is all the bank's fault.

Their sense of fair play is completely absent. Their reasoning that "there is still 5 million in the bank, so why can't I take two million for myself" is completely astounding.

The concept of deception and trading whilst insolvent seems never to have crossed their minds.

 

[beachbum]

Like most cults that come crashing down the members wake up and say how could I have become involved. The cult leader mumbles incoherant rubbish and everyone realises that he lives on a another planet. It will happen again when the next mania arrives and a new generation of followers are roped in. Lets hope this cult leader is held accountable for his actions. I doubt he or other directors will ever accept resposibility. Did Bond or Skase. Never ever. Never trust anybody with your wealth. If you bugger up you can kick yourself and take the rap without too much damage. Use money that you have earnt by working hard and saving. The only person you have to answer to is your partner and they should be involved also. Apply commonsense to decisions and research. Don't believe all the glossy promo junk and initial public offering sales junk. Most of all money is not that important. Give me a roof, food, my family and health. (not necessarily in that order) Australia is still a lucky country, we place too much importance on things that are not as important as we really think. If I can contribute to the happiness of those around me ( especially my wife) my life is rich. Chin up all.

 

[bunyip]

It looks like there might be another Storm, this time in Victoria!

http://www.moneymanagement.com.au/article/A-new-Storm-brewing/437840.aspx

Unreal isn't it! Not surprising though - I've seen it all before....these sort of characters go broke or get shut down, next thing they bounce up somewhere else under a new logo, quite often in the same sort of business.
It's patently clear that we haven't seen the last of Cassamatis.

I notice that one of the authorised representatives of this Victorian outfit is a Peter John Allen.
I went to school with a bloke of that name and he ended up in the financial planning industry. Quite possibly the same bloke.

 

[-Bevo-]

In the first half of 2008, when we tried to get out, and sell our portfolios, Storm blocked us.

Then ASIC blocked Emanuel from getting his 2 million and he lashes out, oh thats right he probably needs that money to help the victims.

 

[bunyip]

I don't sense one iota of regret or remorse from that couple. In their mind it is all the bank's fault.

Their sense of fair play is completely absent. Their reasoning that "there is still 5 million in the bank, so why can't I take two million for myself" is completely astounding.

The concept of deception and trading whilst insolvent seems never to have crossed their minds.

Yes, they seem to have no sense of fair play at all.
But I don't think they really believe their own bull about it all being the banks fault. They'd be well aware of their own stuff ups - they just lack the character to admit it.
I also think they'd have been aware of the immorality of grabbing that 2 million and continuing to sign up new clients when they were insolvent.

This pair and others like them make me quite angry - and I'm not even one of the people they helped to sink.
Unfortunately there are some weak and spineless people in the world.

 

[bunyip]

Storm Financial was a con and we accept responsibility for being caught. Cassimatis has a delusional approach to planning; maybe he believed the banks would support unsecured loans and gambling business practices. How many times did his businesses go broke before Storm - at least once, quite possibly twice? There was the same strategy for all clients - sell your home and invest in the share market. Or mortgage your houses/business to 80%+ and add on huge margin loans. Debt was viewed as an asset. Storm especially liked those close to retirement/retirees with savings; they would take any accessible super and invest it in shares. When asked, 'advisers' knew nothing about other avenues for investment. The strategy was to increase margin loans and house mortgages; to get more fees. We were told "trust us", "it's safe"; the stress on repeating such phrases, has been confirmed by ex employees who relate the Storm approach to that of a cult - with special secrets to life happiness. We were in because family and friends recommended them and we began doubting lots of things and talked about getting out. In the first half of 2008, when we tried to get out, and sell our portfolios, Storm blocked us. Storm had minimal PI insurance and they have ruined the lives of thousands of people. Storm geared clients to such high levels that we were doomed with even a small drop in the market. Clients were in a dire situation long before the market got to where it has been in 2009 - at approximately 4,800 for us. The lies continued when our "equity was turned into cash" as we were told we were taken out with our portfolio being worth more than our debt; but it wasn't. We were not greedy but the aim was to become self funded retirees; to ensure our financial future. Now we will be homeless (if we clear our debt). I was thinking of posting this on the Cassimatis website: "Can we camp on your lawn in Brisbane Manny, as you still have a house; and since your such a champion of ex-Storm clients?" imp:

Smiley

Thanks for your very candid post.

One question.....when you say Storm blocked you from getting out - do you mean they talked you out of it or did they block you in some other way?

 

[Smiley]

Answer is complicated re getting out of Storm - yes put us off, lost papers to do so, lost someone's stop loss documents, told us could not do on that day, scared another familymember with lies that all would be lost in capital gains. In our own case, should have done a sit in until it was done. Phone calls to fund manager referred us back to Storm. Phone calls to margin lender assured us we would be taken out at different level than we were and still finding it hard to close all that down. Every person at bank working in investment lending we talk to has a different story. Fax a form and they need another. You'd have to be in this to believe it. Glad to hear that there is going to be a senate inquiry.
h

 

[numbercruncher]

Talking of naivety, I'm still shaking my head almost in disbelief at the Stormer interviewed on Four Corners who told of how he borrowed 1.8 million to invest through Storm. His job income was 50k.
The interviewer, clearly curious as to how this bloke thought a 50k income could fund an annual interest bill of well over 100k, asked him how he had intended to meet the commitments on the 1.8 million loan.
His reply was 'Storm told me it would be self-funding'.
The reporter pressed him further by asking 'Did you know how that was going to happen'?
By way of reply he could only offer again 'Storm told me it would be self funding'.

No disrespect intended towards any Stormers who may have done something similar. But it almost beggars belief that someone would not put just the tiniest bit of thought into what he was about to do, by working out that 50k annually can't possibly fund well over 100k annually.

Banks that lend for these types of ponzi schemes deserve to go down the gurgler as well .....

But instead they will get a Guvmint bailout with taxpayer debt whenl the bills come due ...

The crack-up boom - at a disco near you

 

[pilots]

I note that we have some ex Storm employees on this forum, would one of you tell me how much commission you would get from a wood duck that you talk in to borrowing 1.8 Mil on a wage of $50'000 a year, then how much would Storm take from him as well. Thanks.

 

[carey ramm]

Smiley sorry to hear about your situation. Your story about the difficulties of getting funds out at request is very similar to many others. In one case where a storm client was in a divorce settlement, storm stalled the paperwork in defiance of a federal court order for almost 9 months and of course that poor person lost the lot with the collapse.

The level of "irregularities" in the loan application document i have seen continues to stagger my belief in the banking system. Examples include:

* loans being approved the day before the application was dated and submitted
* loans totally $1.5m to a client who was originally assessed by the bank as a high credit risk for the intitial $100k home loan - yet the loans were still processed
* loans being witnessed by people in different cities to the borrower
* inflated income levels - in one extreme case a retiree had a monthly income of $104k on her loan application
* incorrect details of property owners where a person who listed a house as security wasnt even on the title deed
* then of course there are those who werent even in margin call and were sold down and those that had funds to meet a margin call but were never called (i cant see how they call it a call if no-one calls!!!).
and it goes on and on and on.... i really did expect better from our leading banks.

so please get the loan application documents (both home loan and margin loan) and check them out for irregularities. be pushy with the banks and dont let them give u the run round. if u are unsure of what u r reading then get a lawyer to look at them (if u cant get to slater and gordon or connolly suthers then a community legal aid lawyer can also help u).

i also read a comment earlier about my relationship with financial planners. i have many friends who are financial planners the same way i have many friends who are lawyers, accountants, engineers, mechanics, chefs, etc. i do not provide reccomendations to anyone (including family) on any specific financial planner - period.

i am not aware of any other financial planners in the same boat as storm or as said in a past post "the next round in the chamber". i have had a few people see me who were in margin loans on specific stock purchases such as allco, mfs, abc learning and a few other recent gems that were being pushed by the broking houses but that is real buyer beware advice. i have not seen any clients from other financial planners in distress. with the asx hitting 3342.7 on jan 23 (which is also close to the dec bottom) i am pretty sure we would have seen and heard about it by now as the margin lenders dont cut u much slack in meeting calls (as most storm clients can attest to).

in terms of disclosure - i am on this forum and in the press using my real name and identity. i am involved in this "crusade" (just borrowing an EC term!!!) as i was deeply moved by the many people who have come to see me for help and i gave them a personal commitment i would do my best to help them. myself and the company i work for are doing this as a community service obligation as we percieve a great social injustice has occurred.

in terms of using lawyers i can say, based on personal experience, that i agree with some of the views expressed on here that they can be the "winners" in litigation. however i can say that both the lawyer groups i am dealing with have been deeply moved by the people they have seen and i have been impressed with the compassion and understanding they have shown to the victims.

again it is entirely up to each individual storm client whether they choose to go quitely into the night or fight on.

all i can say is the clients i am helping are choosing to fight on.

 

[carey ramm]

storm also paid their advisors very well with a good base and commission structure - 1 know one mid level advisor earnt $450k in the 2007/08 financial year