Storm Financial Group

[Solly]

It is reported in the Daily Telegraph that Andrew Symonds,

"...had up to $4million in his portfolio after borrowing $1million to invest with Storm Financial Group.

Four weeks later, the company was doomed, robbing Symonds of a seven-figure sum, said to be $1.5million. In the same month, Symonds clashed with a fan at Brisbane pub the Normanby, earning a rebuke from CA."

See the article by Peter Badel here;

http://www.news.com.au/dailytelegraph/story/0,22049,25597314-5006069,00.html

Roy's had a lot on his mind lately, it makes me wonder what were the contributory factors for his recent wayward behaviour. I believe that there are members of his family that have also lost money with Storm.

 

[Solly]

An article by Anthony Marx in the Weekend edition of The Courier Mail
describes the plight of ex Storm clients Keith & Diane Ensor and Des & Teresa Lockett.

The article describes the plight of the Ensors as they are forced to sell their family home, the Comm Bank required they repay more than $100,000 in margin loans. They once had nearly $2 million in their portfolio and now have an old Corolla and a 17 year old caravan, are living in near poverty and have nowhere to call home.

The Locketts, who wanted to be self funded retirees, lost $1.2 million, are struggling to survive, sold their home, have their belongings in storage, now live in a tiny duplex and are selling their cars . Ms Lockett dry-wretched for weeks when they got the margin call, is unwell and on medication to help cope.

The article says that the Cassimatis' are still living in their substantial dwelling at Belmont.

If you can get a copy of the paper, you can read the whole article on page 37.

I am eager to see the outcomes of all the investigations into the Storm saga and identify the root cause of the collapse and associated repercussions.

 

[pilots]

An article by Anthony Marx in the Weekend edition of The Courier Mail
describes the plight of ex Storm clients Keith & Diane Ensor and Des & Teresa Lockett.

The article describes the plight of the Ensors as they are forced to sell their family home, the Comm Bank required they repay more than $100,000 in margin loans. They once had nearly $2 million in their portfolio and now have an old Corolla and a 17 year old caravan, are living in near poverty and have nowhere to call home.

The Locketts, who wanted to be self funded retirees, lost $1.2 million, are struggling to survive, sold their home, have their belongings in storage, now live in a tiny duplex and are selling their cars . Ms Lockett dry-wretched for weeks when they got the margin call, is unwell and on medication to help cope.

The article says that the Cassimatis' are still living in their substantial dwelling at Belmont.

If you can get a copy of the paper, you can read the whole article on page 37.

I am eager to see the outcomes of all the investigations into the Storm saga and identify the root cause of the collapse and associated repercussions.

Solly, So tell me this, was a gun held to the Locketts head at any time, to make them buy in to this get rich rip off, or was it that they was naive, or was they just plan GREEDY, you tell me what made them do it.

 

[Solly]

Solly, So tell me this, was a gun held to the Locketts head at any time, to make them buy in to this get rich rip off, or was it that they was naive, or was they just plan GREEDY, you tell me what made them do it.

I have no direct knowledge of why the persons mentioned in the article invested in Storm. But others I have met have told me that they invested in Storm because they trusted that Storm would be able to give them a safe comfortable income stream in retirement.

The yearly income they told me that they were expecting, to me was quite modest. I wouldn't call the ex clients I have met as being greedy, I saw no outwardly obvious sign of wealth. They had quite modest homes, cars and lifestyles.

I was horrified when one ex client explained to me their level of debt and gearing. Although at the time they did not see any real risk of their exposure to the volatility of the markets.

They had an unshakable belief in the abilities of Storm and EC to be able to ride out of any problems looking after their portfolio and their future. Even when the situation turn dire they were confident that all would be ok.

These particular ex clients are now barely able to feed themselves, service their existing debts and have no nest egg for retirement. They realise they are responsible for agreeing to go with Storm but they are mystified how with all the perceived checks and balances that are in place how they are now left with less than nothing.

I have a vivid recollection of speaking on the phone with this ex Storm client regarding the massive problems facing him and hearing the sound of his wife vomiting in the background.

 

[Soft Dough]

The yearly income they told me that they were expecting, to me was quite modest. I wouldn't call the ex clients I have met as being greedy, I saw no outwardly obvious sign of wealth. They had quite modest homes, cars and lifestyles.

Why did nobody question as to why they needed gearing when 1.2 million at 4% is approximately $50k per annum almost tax free.

Why?

Because they wanted to significantly outperform the market and were prepared to take the risk in doing so.

Also

because their advisors were greedy and unethical in not having plans to suit individual situations, and hence risk tolerance.

I blame

50% Emmanuel Cassimatis
50% The investors - who were either naive or greedy, and there is no excuse for either when investing millions of dollars.

Final parting message.

NEVER EVER rely on someone else to protect your millions when they are making commissions on your money. Research the risks, benefits, strategies and fees yourself AND have your accountant go over it AND get a second opinion. If people did this, Storm would never have existed, or would never have been able to put people into the situation they were put in.

 

[pilots]

I have no direct knowledge of why the persons mentioned in the article invested in Storm. But others I have met have told me that they invested in Storm because they trusted that Storm would be able to give them a safe comfortable income stream in retirement.

The yearly income they told me that they were expecting, to me was quite modest. I wouldn't call the ex clients I have met as being greedy, I saw no outwardly obvious sign of wealth. They had quite modest homes, cars and lifestyles.

I was horrified when one ex client explained to me their level of debt and gearing. Although at the time they did not see any real risk of their exposure to the volatility of the markets.

They had an unshakable belief in the abilities of Storm and EC to be able to ride out of any problems looking after their portfolio and their future. Even when the situation turn dire they were confident that all would be OK.

These particular ex clients are now barely able to feed themselves, service their existing debts and have no nest egg for retirement. They realize they are responsible for agreeing to go with Storm but they are mystified how with all the perceived checks and balances that are in place how they are now left with less than nothing.

I have a vivid recollection of speaking on the phone with this ex Storm client regarding the massive problems facing him and hearing the sound of his wife vomiting in the background.

The first thing we learnt was to have a balanced portfolio, tell me what did they have apart from Storm??? my bet is they had all the eggs in one basket

 

[Solly]

The first thing we learnt was to have a balanced portfolio, tell me what did they have apart from Storm??? my bet is they had all the eggs in one basket

Correct...

 

[Julia]

The first thing we learnt was to have a balanced portfolio, tell me what did they have apart from Storm??? my bet is they had all the eggs in one basket

Well, if Storm had been genuinely an all round Financial Adviser they would have advised on investments other than just the share market, wouldn't they?

So when you say they had 'all the eggs in one basket' clients should still have been able to expect Storm to invest their funds across several asset classes, including cash. Obviously this didn't happen.

The point I'm trying to make (badly I think) is that going to just one financial adviser should not be considered the eggs in one basket as that adviser should provide advice for one's whole situation.

 

[Solly]

I have found some of the submissions to the
Inquiry into Financial Products and Services in Australia
are quite interesting.

The submissions can be found here:

http://www.aph.gov.au/senate/committee/corporations_ctte/fps/submissions/sublist.htm

One submission I found interesting is submission number 30 by
Sean and Paula McArdle who are former Storm clients.

Sean McArdle is a Forensic police officer and Sergeant with 20 years service with the QLD Police.
On page 6 of their submission it is stated that the McArdles believe,

"that criminal activity has occurred during the brokering and approval stages of loans ........
and bribes been given to senior CBA staff for loan approvals. This criminal activity applies equally to both Storm and Bank staff."

Here is the link to their submission;

http://www.aph.gov.au/senate/committee/corporations_ctte/fps/submissions/sub30.pdf

I trust that the full details of their claims of criminal activity have been given to the appropriate investigating bodies
and will be fully investigated and be quickly substantiated or dismissed.

 

[darkside]

I do sympathsise with the Mcardle's in their submission, as i am sure everyone on this site does, i also see pages upon pages of questions and accusations leveled at all and sundrie in their affidavid, does anyone else not see that if a tenth of the research and effort was put in before actually signing on the bottom line and throwing "hard earned coin" at a over zealous but under performing Storm Salesman they wouldn't be in this position.
Perhaps Sean could have pooped his head in next door and had a chat with the boys in the "Fraud Squad", they would have used that worn out old addage " matey, if it looks too good, well it is " and if your not shown a Terms and Conditions document after insisting on it , maybe you should walk away, thats just my opinion, i'm sure everyone else on here has their own. On a plus side , being in forensics at least he will be able to see how it unfolded and where it went.

 

[pilots]

Darkside, what a lot of people don't under stand is that 9 out of 10 FP are only sales people, no different to a car sales man. Most of the Storm mob had all the eggs in the one basket.

 

[darkside]

Darkside, what a lot of people don't under stand is that 9 out of 10 FP are only sales people, no different to a car sales man. Most of the Storm mob had all the eggs in the one basket.

Pilots, so true , hence my reference to "over zealous, yet under performing sales people" and i bet a lot of these people , actually research their car purchase way more thoroughly, and shop around more before buying that 4 year old 2nd hand commodore that costs them a shade over $10,000 and they have to repay for a few years , yet sign up for million dollar plus margin loan with out even reading the term and conditions.

 

[pilots]

We have in our street a FP, he is about 55/60, his wife told mine that they have just paid off the car they have, it is a bout five years old, he is still renting a house, now people go to him for advice, and yet he has not got his own act together at that age. When you see him go to work each day he looks and talks like he has a million dollars.

 

[Solly]

We have in our street a FP, he is about 55/60, his wife told mine that they have just paid off the car they have, it is a bout five years old, he is still renting a house, now people go to him for advice, and yet he has not got his own act together at that age. When you see him go to work each day he looks and talks like he has a million dollars.

Does FP = Financial Plodder..:

 

[asproboy]

We have in our street a FP, he is about 55/60, his wife told mine that they have just paid off the car they have, it is a bout five years old, he is still renting a house, now people go to him for advice, and yet he has not got his own act together at that age. When you see him go to work each day he looks and talks like he has a million dollars.

Does FP = Financial Plodder..:

I must say I'm confused by these views on Financial Planner personal wealth, particularly in light of the 'greed = guilty' nature of a lot of this thread's posts! At the risk of going off-topic, do you want your financial planner to have obvious wealth (at the risk of being labelled a 'scamster' - EC I'm thinking of you) or do you want someone who's role-modelling living within your means, building a secure nest-egg, focusing on an active portfolio rather than non-growth assets such as the family home (at the risk of perceptions that you don't even have your own house in order)?

Pilots, I have no idea of the personal circumstances of your neighbour, how long he's been an FP, what his work/life balance is like or his level of wealth that may be inapparent to the casual observer. Nor the type of advice he offers.

Am I alone in thinking a financial planner who's socially-minded, delivers sound advice that helps his clients rest easy with solid wealth strategies, charges reasonably to support his business and himself with a modest lifestyle while setting he and his wife for a secure future is a GOOD thing?

It's intrigued me for a long time that people saw Manny making more money than he could prudently spend and couldn't wait to get on board, not realising THEY were the ones getting gouged for his benefit!!

 

[chrisgee]

I must say I'm confused by these views on Financial Planner personal wealth, particularly in light of the 'greed = guilty' nature of a lot of this thread's posts! At the risk of going off-topic, do you want your financial planner to have obvious wealth (at the risk of being labelled a 'scamster' - EC I'm thinking of you) or do you want someone who's role-modelling living within your means, building a secure nest-egg, focusing on an active portfolio rather than non-growth assets such as the family home (at the risk of perceptions that you don't even have your own house in order)?

Pilots, I have no idea of the personal circumstances of your neighbour, how long he's been an FP, what his work/life balance is like or his level of wealth that may be inapparent to the casual observer. Nor the type of advice he offers.

Am I alone in thinking a financial planner who's socially-minded, delivers sound advice that helps his clients rest easy with solid wealth strategies, charges reasonably to support his business and himself with a modest lifestyle while setting he and his wife for a secure future is a GOOD thing?

It's intrigued me for a long time that people saw Manny making more money than he could prudently spend and couldn't wait to get on board, not realising THEY were the ones getting gouged for his benefit!!

hey we thought we were getting good sound advice. thungs didnt look like a scam i really think storm really believed taht they had a stratedgy that worked. i dont think that the cassimatises thought it would fall over. they havent run away they are still here they didnt bolt off. evetybody is a salesman, in your job i bet you sell things, so do i , so do banks , other finnancial planners , everybody sells something.
peple like to beat up all the stom clients they are not a bunch of no hopers and morons. everybody thouight they were doing the right thing. storm complied with all the government rules, assic said they were ok, they had funds branded by the comminwealth bank/cololinal etc.
and who on this forum doesnt want to be financially secure ???

things are taking thier toll on the family but somehow we will get through this. of course we all want to have a rich life, look at the haeds of the banks, the insurance companies, phone companies, private companies etc they can live a good life . what cant we with out being scorned for wanting to have a better life. our problem is we backed the wrong horse

 

[nomore4s]

things didnt look like a scam i really think storm really believed that they had a stratedgy that worked. i dont think that the cassimatises thought it would fall over.

It is a strategy that will work in the right conditions. If you are advising your clients to take on this sort of strategy you also need to be able to recognise when conditions change and advise them to reduce gearing levels ASAP.

 

[Dark Leopard]

I have been a long time visitor to this forum to watch and read what is happening with this whole Storm saga.

I am sure that there is much more to come.

I am sure many will be very surprised about what will be revealed.

There are many twists and turns still to come and much, much more to come out.

Those who have done nothing wrong have nothing to fear.

I have full confidence in those who are behind the investigations into this whole matter.

No stone must be left unturned.

 

[Kez180]

I have been a long time visitor to this forum to watch and read what is happening with this whole Storm saga.

I am sure that there is much more to come.

I am sure many will be very surprised about what will be revealed.

There are many twists and turns still to come and much, much more to come out.

Those who have done nothing wrong have nothing to fear.

I have full confidence in those who are behind the investigations into this whole matter.

No stone must be left unturned.

Why is it that half the people involved with this whole debacle speak/write in semi cryptic gobblygook...

and wtf? dark leopard, its called a panther you spanker....

 

[darkside]

Why is it that half the people involved with this whole debacle speak/write in semi cryptic gobblygook...

and wtf? dark leopard, its called a panther you spanker....

KEZ180, matey that was a touch harsh, clearly dark leopard is in the know and has his finger on the pulse , surely your not claiming you knew there was more to come , i thought it was all over, :there are more twists and turns ,,, no way , once again i thought it was all cut and dry. And Those who have done nothing wrong have nothing to fear, see i believed those who had done nothing wrong would have been whipped on the D*** with a wet shoelace. And as for cryptic him and "cerebus" must get together, speaking of which, he promised so much and delivered, well, we all know that one.