Storm Financial Group

[Solly]

"Storm's financial maelstrom threatens banking sector"

Here's an interesting article by Colin Kruger in the SMH, I believe it's a good precis of where things are up to at the moment.

In the article John McLennan, a banking consumer advocate, likens the Storm model to a ponzi.


http://business.smh.com.au/business/storms-financial-maelstrom-threatens-banking-sector-20090220-8dmm.html

 

[Trevor_S]

In the article John McLennan, a banking consumer advocate, likens the Storm model to a ponzi.

I find this, in the same article weird.

Strangely, many that the Herald spoke to are not blaming Storm and accept its official verdict that a "Black Swan" event was to blame rather than Storm's leveraged model.

Even though the clients need to take alot of the responsibility, I can't even begin to understand how "many that the Herald spoke to are not blaming Storm " for crappy advice ? ie overleveraging

I guess I don't understand the human psyche

 

[Julia]

ven though the clients need to take alot of the responsibility, I can't even begin to understand how "many that the Herald spoke to are not blaming Storm " for crappy advice ? ie overleveraging

I guess I don't understand the human psyche

Doesn't it just reinforce the astonishing naivete of these investors?
i.e. that even now with all that has happened, they have still not woken up.

 

[Glen48]

The Nigerian scammer's will be send them letters next tell them they can get their money back.
All those looking in can see what went wrong.

 

[Mash]

don't tar us all with the same brush.... I'd like to know who those people are who don't blame storm..maybe those that weren't double leveraged ... and therefore haven't lost everything....makes for a better read but doesn't it...and how quickly you picked up on that one point... der...that's why they put that kind of comment in these stories. i have spoken to hundreds who blame both storm and the banks equally. The banks still have our money and we'll fight to get it back !

 

[bunyip]

The Nigerian scammer's will be send them letters next tell them they can get their money back.
All those looking in can see what went wrong.

One of those Nigerian scam victims was interviewed on TV a few months back. He was caught by the scam an amazing eight times!
When asked why he didn't learn after the first time and the second and the third and so on, his reply was....'Guess I'm the eternal optimist - each time I thought this time it'll be different, this time it'll be legitimate'!
Surprisingly he didn't appear to be dim-witted - he was in fact a successful businessman and quite financially well off until the scams cleaned him out.

Seeing some of those Storm victims on TV and reading about them in the papers, hearing them claim they don't understand how it happened, blaming the banks and apparently not attributing any blame to Storm, you'd have to suspect that they're prime candidates to get scammed again if they ever recover to the extent of once more having money to invest. Maybe EC will nail them again if he ever remerges in the investment advisory business, which I believe he will.
At least all the Stormers who have posted on this thread appear to realise they were conned by the Storm sales pitch. I doubt if any of them would fall for anything similar again.

 

[Cosgrove Fenton]

At least all the Stormers who have posted on this thread appear to realise they were conned by the Storm sales pitch. I doubt if any of them would fall for anything similar again.

Can someone please post the bank account details for these Nigerian chaps and if I lose my money I can blame the bank for lending to me.

 

[swazee]

Come on guys, these posts are getting little out of hand. Nigerian Scames! Give me a break.

Whilst we can finger the blame at Storm and the Banks, lets not forget the Storm clients and what they are presently going through, which I am sure are also shouldering thier fair share of the blame. If you feel the need to add salt to the wound of these clients, then find somewhere else to post such comments.

I have seen some fantastic posts that are very useful to Storm clients are aimed at helping them through this crisis, however over the last week the quality of these has dropped to a low level.

To all the Storm clients who have been adversely affected, keep your head up, stick to whatever plan you may have and most importantly keep moving forward. With the help of family and friends you will rebuild your lives and finances to enable you to live a happy and fruitful life. There is no better victory than thriumph through adversity.

Never give up.

 

[So_Cynical]

One of those Nigerian scam victims was interviewed on TV a few months back. He was caught by the scam an amazing eight times!
When asked why he didn't learn after the first time and the second and the third and so on, his reply was....'Guess I'm the eternal optimist - each time I thought this time it'll be different, this time it'll be legitimate'!
Surprisingly he didn't appear to be dim-witted - he was in fact a successful businessman and quite financially well off until the scams cleaned him out.

Yep i remember that...it was like he was addicted to chasing that dream, and
couldn't see it for what it was...he's eyes would light up when he talked about
the 20 million dollar bogus check he had.

I think there's a certain part of the population that just susceptible to this kind
of easy money, they need someone to hold there hand and like feed them the
easy money fantasy (tell em what they want to hear) without these people
the scammers just cant exist.

 

[pilots]

Come on guys, these posts are getting little out of hand. Nigerian Scames! Give me a break.

Whilst we can finger the blame at Storm and the Banks, lets not forget the Storm clients and what they are presently going through, which I am sure are also shouldering thier fair share of the blame. If you feel the need to add salt to the wound of these clients, then find somewhere else to post such comments.

I have seen some fantastic posts that are very useful to Storm clients are aimed at helping them through this crisis, however over the last week the quality of these has dropped to a low level.

To all the Storm clients who have been adversely affected, keep your head up, stick to whatever plan you may have and most importantly keep moving forward. With the help of family and friends you will rebuild your lives and finances to enable you to live a happy and fruitful life. There is no better victory than thriumph through adversity.

Never give up.

Swazee, you blame the banks and storm, what are you telling me they made you go out and buy in to Storm???

 

[Julia]

don't tar us all with the same brush.... I'd like to know who those people are who don't blame storm..maybe those that weren't double leveraged ... and therefore haven't lost everything....makes for a better read but doesn't it...and how quickly you picked up on that one point... der...that's why they put that kind of comment in these stories. i have spoken to hundreds who blame both storm and the banks equally. The banks still have our money and we'll fight to get it back !

Well, I hope you're not holding your breath in the expectation of getting anything from the banks!
It wasn't the banks who made the decision to borrow against the home, then to again borrow on the shares bought with that borrowed money.
How this didn't appear to be even a bit risky is absolutely beyond me!

 

[swazee]

Swazee, you blame the banks and storm, what are you telling me they made you go out and buy in to Storm???

Read by post! I said that Storm clients are also shouldering their fair share of the blame. What is the point in putting the boot in now, after the fact? A lot of these people have lost their homes, 1 has already committed suicide and many families are on the verge of breaking apart due to the stress of it all.

Lets at least offer some intelligent and more importantly 'respectful' solutions that at least attempts to asist, not hinder the healing process.

Here is a starting point....put yourself in their shoes and think....what would I do next?

 

[pilots]

Swazi, Sorry that you have lost so much. You say you want respectful solutions, First DON'T wast any more money chasing what you have lost, its GONE. Stop all the blame game, most of the fault here was your own, if I was to buy XYZ shares to day and they go bad, should I blame the broker that sold them to me, or should I blame the bank that let me have that let me have the money, or should I blame XYZ???????? Storm is just one of the many that WILL go to the wall this coming year.

 

[Aussiejeff]

"Storm's financial maelstrom threatens banking sector"

Here's an interesting article by Colin Kruger in the SMH, I believe it's a good precis of where things are up to at the moment.

In the article John McLennan, a banking consumer advocate, likens the Storm model to a ponzi.


http://business.smh.com.au/business/storms-financial-maelstrom-threatens-banking-sector-20090220-8dmm.html

Slater & Gordon's Damian Scattini, who is preparing legal action on behalf of Storm clients, says it is clear that both Commonwealth and the Bank of Queensland "effectively empowered" Storm to make lending decisions on their behalf.

"The Commonwealth Bank was in partnership with Storm, there's no doubt about it," McLennan claims.

It could go a long way to deciding who might have to help wear the cost of Storm client losses, which are expected to top [size=+1]$1 billion[/size].

Hopefully, there isn't a Cyclone Financial Group out there, somewhere, getting ready to devastate another portion of Oz.

Damned Storm was bad enough...

 

[Cosgrove Fenton]

Come on guys, these posts are getting little out of hand. Nigerian Scames! Give me a break.

Yes, the leap to the Nigerian scams is a little farfetched, I'll agree. Swazee, we all respond to and recover from trauma in different ways - mine is to be cynical and to make dry observations - laughter can be the best medicine! The public relies on governing bodies to regulate the players in the market, but the point is we can't always be protected from ourselves or global events. Blaming the Lenders in this case is just a waste of time and is selling false hope to Storm Victims - they are not being called Bank Victims (not that I like banks) or Global Financial Crisis Victims and there is a good reason for this.

 

[maccka]

Re: SICAG meetings

Dates and venues for the upcoming SICAG meetings are:

ROCKHAMPTON
Tuesday Feb 24 6 pm for 6.30 pm start
Rockhampton Leagues Club, Cambridge Street, Rockhampton

MACKAY
Wednesday Feb 25 6 pm for 6.30 pm start
Mackay Aero Club, Casey Street, South Mackay (old airport)

CAIRNS
Thursday, Feb 26 6 pm for 6.30 pm start
Admiralty Room, Frogs on The Waterfront (Cairns Cruising Yacht Club Squadron)

Speakers at each meeting include:
Mark Weir and Noel O’Brien (SICAG Co-Chairmen)
Mr John McLennan (SICAG consultant, bank consumer advocate)
Damian Scattini (Brisbane Practice Manager, Slater & Gordon)
ASIC representative (not confirmed to speak)

The Cairns meeting will also feature Senator John Williams and Senator Ian Macdonald speaking about the status of the Senate Inquiry into the banking and financial services industry and Desley Boyle speaking on behalf of the Qld Government.

It is also believed the representatives from the Financial Ombudsmen Service will be present at each meeting.

 

[Solly]

"Storm over $2m last-ditch dividend"

"EMMANUEL and Julie Cassimatis were the only remaining directors at Storm Financial when they controversially paid themselves a $2 million dividend"

"The week after paying the dividend, Mr and Mrs Cassimatis contacted Worrell Accountants."

Ron Jelich claims that "Mr Cassimatis told him in early November that Storm had $17 million to $18 million in the bank"


Full Story by Colin Kruger in the Sydney Morning Herald is here;

http://business.smh.com.au/business/storm-over-2m-lastditch-dividend-20090223-8ftw.html

 

[Solly]

What's happening at cassimatis.com.au ?

It's been 6 days since we've had a "Latest News" update from Wilkinson Media and I noticed that there hasn't been a recent update to the "Recent Questions". Have people run out of questions?

It's been another week and still no further updates on
cassimatis.com.au from Wilkinson Media.

Has anyone asked any more questions ?

 

[Solly]

It's been another week and still no further updates on
cassimatis.com.au from Wilkinson Media.

Has anyone asked any more questions ?

Appears the Media Release from 17/2 regarding the Deed of Company
Arrangement (DOCA) has now been posted.

 

[bunyip]

It's been another week and still no further updates on
cassimatis.com.au from Wilkinson Media.

Has anyone asked any more questions ?

I've asked a couple more. I also invited Cassamatis to email me privately if he wasn't game to answer me publicly. Not that I seriously thought he would.

My guess is that he's copped a real razzling from angry Storm victims who are demanding answers, and he hasn't been game to publish their posts. He sees no point in continuing with the website.