Storm Financial Group

[swazee]

I wonder if Slater and Gordon have advised clients to contact AIG (PI Insurers) as part of the class action I doubt AIG can be drawn in as they are only the insurer...this may be another course of action and possibly better than taking on the CBA...

It has also been mentioned on here before about formally lodging a complaint through the CBA's internal dispute resolution scheme, if they cannot be resolved then it moves to an independant adjudicator. Again, costs nothing but wirth a try.

From the Administrators report......

"Storm carried Professional Indemnity Insurance. Clients of Storm who are able to demonstrate that they have incurred losses as a result of negligence by Storm may be paid, or partly paid, by Storms insurers
provided the claims lodged are not subject to any of the policies exclusions."

Negligence will not be difficult to prove, particularly under the 'reasonable basis' test and the 'know your client' rule. AIG may also have other criteria they use to determine negligence....who knows.

Have any Storm clients been in contact with AIG yet??

 

[Solly]

"ASIC targets banks over $1b Storm collapse"

"THE corporate watchdog will widen its investigation into the $1 billion collapse of the wealth adviser, Storm Financial, to include its financial backers such as Commonwealth Bank, Macquarie Group and Challenger Financial."


"....it is believed the Australian Securities and Investments Commission is examining whether it can secure an Opes Prime-style settlement that may lead to a compensation fund."


Full Story by Eric Johnson in the Sydney Morning Herald is here;

http://business.smh.com.au/business/asic-targets-banks-over-1b-storm-collapse-20090318-927x.html

 

[Pindibog]

I wonder if Slater and Gordon have advised clients to contact AIG (PI Insurers) as part of the class action I doubt AIG can be drawn in as they are only the insurer...this may be another course of action and possibly better than taking on the CBA...

It has also been mentioned on here before about formally lodging a complaint through the CBA's internal dispute resolution scheme, if they cannot be resolved then it moves to an independant adjudicator. Again, costs nothing but wirth a try.

From the Administrators report......

"Storm carried Professional Indemnity Insurance. Clients of Storm who are able to demonstrate that they have incurred losses as a result of negligence by Storm may be paid, or partly paid, by Storms insurers
provided the claims lodged are not subject to any of the policies exclusions."

Negligence will not be difficult to prove, particularly under the 'reasonable basis' test and the 'know your client' rule. AIG may also have other criteria they use to determine negligence....who knows.

Have any Storm clients been in contact with AIG yet??

AIG (American International Group) are considered to be one of the major contributors to the current global credit situation, and the Cassimatis’ will have a very limited liability and, pro-rata little to divide amongst the creditors.

 

[nigel foxwell]

Better late than never for ASIC, they really took their time with this. It does seem that they are looking at getting some sort of compensatory outcome for creditors and investors, which would be a solid outcome. The downside is if ASIC pursues this without a view to following up with penalties for the (as yet to be determined) guilty parties.

For those of who missed it earlier - I recommend having a read of Alan Kohler's "The Eureka Way" (no endorsement to buy, I borrowed from the library). It outlines his issues with the FP landscape as it currently exists and shows examples of breaches of duty and the outcomes.

 

[Solly]

"Storm subsidiary placed into liquidation"

"Geelong financial planning business Victorian Families Retirement Investment Group Pty Ltd, a wholly owned subsidiary of Storm Financial, was on Thursday placed into provisional liquidation by the Federal Court in Brisbane"

Story in the Sydney Morning Herald is here;

http://news.smh.com.au/breaking-news-business/storm-subsidiary-placed-into-liquidation-20090319-931x.html

 

[Garpal Gumnut]

Better late than never for ASIC, they really took their time with this. It does seem that they are looking at getting some sort of compensatory outcome for creditors and investors, which would be a solid outcome. The downside is if ASIC pursues this without a view to following up with penalties for the (as yet to be determined) guilty parties.

For those of who missed it earlier - I recommend having a read of Alan Kohler's "The Eureka Way" (no endorsement to buy, I borrowed from the library). It outlines his issues with the FP landscape as it currently exists and shows examples of breaches of duty and the outcomes.

I must warn you all that SICAG.INFO when I last looked this arvo still had a prominent link to Manny's missive about the Cassimatis plan but no mention on ASIC's significant statements over the last two days.

Any of you Storm victims get advice as there is a lot of it about.

Check the ASIC site befor you sign anything as the sicag site is either not up to date or it is............. whatever.

gg

 

[swazee]

I must warn you all that SICAG.INFO when I last looked this arvo still had a prominent link to Manny's missive about the Cassimatis plan but no mention on ASIC's significant statements over the last two days.

Any of you Storm victims get advice as there is a lot of it about.

Check the ASIC site befor you sign anything as the sicag site is either not up to date or it is............. whatever.

gg

There is very concerning. Timely information is what SF clients need at this point. Unless SIAG have communicated directly via email. If SF clients have not been notified at all by now, I would be requesting my $50 back!!

The fact that Ron Jelich one of the biggest creditors and someone had a very good idea of how Manny and SF operates voted against the DOCA should be a good indication of which way to vote.

 

[bunyip]

I wonder if Slater and Gordon have advised clients to contact AIG (PI Insurers) as part of the class action I doubt AIG can be drawn in as they are only the insurer...this may be another course of action and possibly better than taking on the CBA...

It has also been mentioned on here before about formally lodging a complaint through the CBA's internal dispute resolution scheme, if they cannot be resolved then it moves to an independant adjudicator. Again, costs nothing but wirth a try.

From the Administrators report......

"Storm carried Professional Indemnity Insurance. Clients of Storm who are able to demonstrate that they have incurred losses as a result of negligence by Storm may be paid, or partly paid, by Storms insurers
provided the claims lodged are not subject to any of the policies exclusions."

Negligence will not be difficult to prove, particularly under the 'reasonable basis' test and the 'know your client' rule. AIG may also have other criteria they use to determine negligence....who knows.

Have any Storm clients been in contact with AIG yet??

I think I recall Slater & Gordon indicating that if PI insurance could be accessed by Storm clients, it would be too thinly spread among them to make any real difference to their situation.

 

[Garpal Gumnut]

I must warn you all that SICAG.INFO when I last looked this arvo still had a prominent link to Manny's missive about the Cassimatis plan but no mention on ASIC's significant statements over the last two days.

Any of you Storm victims get advice as there is a lot of it about.

Check the ASIC site befor you sign anything as the sicag site is either not up to date or it is............. whatever.

gg

There is very concerning. Timely information is what SF clients need at this point. Unless SIAG have communicated directly via email. If SF clients have not been notified at all by now, I would be requesting my $50 back!!

The fact that Ron Jelich one of the biggest creditors and someone had a very good idea of how Manny and SF operates voted against the DOCA should be a good indication of which way to vote.

Yes mate, very worrying, I checked the sicag site and as of 11.21 today there is no mention of the ASIC decision.

Its a worry.

I'll let my mates know.

gg

 

[chrisgee]

Does anybody know for sure if the Cassmattises are still in the country?
Things are getting a bit hot now. Did they ever sell their jet?
I wish I'd never heard of Storm

 

[swazee]

Does anybody know for sure if the Cassmattises are still in the country?
Things are getting a bit hot now. Did they ever sell their jet?
I wish I'd never heard of Storm

He jokingly reported to a client late last year (which ended up in the paper) that he and Jules were looking around for countries without any extradition treaties with Australia!!! Not sure if he sold the plane or not, perhaps it is fuelled up and ready for take-off, particulary now that there seems to be no doubt that the dividend was paid whilst knowingly insolvent along with a few other suspicous transactions.

As anyone had any dealings with an ex-Storm adviser and 'right hand man' of Manny, David Mcullock who has apparently just started up another financial planning business in Townsville??

Caveat emptor

 

[maccka]

Yes mate, very worrying, I checked the sicag site and as of 11.21 today there is no mention of the ASIC decision.

gg

Hi GG,

Please don't worry. SICAG has been very busy emailing every member with a range of information including ASIC and the parliamentary inquiry.

It may not be on the website yet (SICAG is a volunteer run group doing the best they can with an absolutely alarming avalanche of things to be done - not least the emotional support of its members) but communication (in the form of emails, updates and a discussion forum) is flowing very well through the network of ex-Storm clients who have contacted SICAG.

They are also currently in the process of collating some very accurate figures from all members to be submitted as part of a submission to the parliamentary inquiry. (I am not not an executive member who is privy to any of the data so there is no point asking me for it.)

I would encourage any ex-Storm clients to contact SICAG via their website ASAP if they haven't already done. The support that SICAG members are giving to each other is amazing and making a hugely positive difference for a group of people who are really doing it tough at the moment.

Cheers.

(PS - To those of you on the list who are thinking it - please don't use my last sentence as an opportunity to promulgate the "greed"/"own fault" message. By all means you will think it (no-one can stop you) but please don't say it *again*. It really isn't necessary to :horse: )

 

[Garpal Gumnut]

Hi GG,

Please don't worry. SICAG has been very busy emailing every member with a range of information including ASIC and the parliamentary inquiry.

It may not be on the website yet (SICAG is a volunteer run group doing the best they can with an absolutely alarming avalanche of things to be done - not least the emotional support of its members) but communication (in the form of emails, updates and a discussion forum) is flowing very well through the network of ex-Storm clients who have contacted SICAG.

They are also currently in the process of collating some very accurate figures from all members to be submitted as part of a submission to the parliamentary inquiry. (I am not not an executive member who is privy to any of the data so there is no point asking me for it.)

I would encourage any ex-Storm clients to contact SICAG via their website ASAP if they haven't already done. The support that SICAG members are giving to each other is amazing and making a hugely positive difference for a group of people who are really doing it tough at the moment.

Cheers.

(PS - To those of you on the list who are thinking it - please don't use my last sentence as an opportunity to promulgate the "greed"/"own fault" message. By all means you will think it (no-one can stop you) but please don't say it *again*. It really isn't necessary to :horse: )

Good to know maccka.

Thanks for the info.

gg

 

[Solly]

"Alarm bells sound for the imperfect Storm"

"CORPORATE collapse is never a lot of fun to watch from up close but there's a new and alarming variant that's emerged in the case of Storm Financial."

"......the founders have been reportedly very successful in rounding up support from unhappy investor clients to take back control of the company via what is called a Deed of Company Arrangement (DOCA)."

More here in The Australian;

http://www.theaustralian.news.com.au/business/story/0,28124,25224916-30538,00.html

 

[Solly]

"Storm Financial creditors set to pounce"

"KordaMentha also expects to recover up to $10 million from the sale of Storm's client book.

The Storm administrator's report ,revealed that assets theoretically available totalled $80.52 million.

...the bank might not even be able to break even because of various accounting issues and other problems in the Storm books."

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

http://www.news.com.au/couriermail/story/0,23739,25224569-3122,00.html

 

[Julia]

Maccka, what is SICAG recommending to its members re the DOCA?
(thanks for very interesting article from the Australian re this, Solly.)

 

[Jifromoz]

Hi Everyone,

I just noticed that all mention of Wilkinson Media has been removed from the www.cassimatis.com.au website......................I wonder why?

 

[Garpal Gumnut]

Maccka, what is SICAG recommending to its members re the DOCA?
(thanks for very interesting article from the Australian re this, Solly.)

Hi Everyone,

I just noticed that all mention of Wilkinson Media has been removed from the www.cassimatis.com.au website......................I wonder why?

Julia and Jifromoz,

There is still no link from the SICAG site to the recent ASIC document.

It seems that only every financial commentator in the country, and every savvy poster on ASF are against these poor people being herded back into the hands of Cassimatis,

This will be under a scheme of arrangement called a DOCA which will absolve Manny from any future litigation.

Poor, poor people.

gg

 

[Jifromoz]

Hi gg,

Have you heard anything about the Supreme Court action by ASIC to wind Storm up ?? I thought it was all going to happen today.

 

[Garpal Gumnut]

Hi gg,

Have you heard anything about the Supreme Court action by ASIC to wind Storm up ?? I thought it was all going to happen today.

No jif, nothing on the ASIC site today.

gg