Mr and Ms Cassimatis had sought a summary dismissal of ASIC’s case against them, with the regulator seeking to ban the pair from the financial services industry and disqualify them from managing companies, as well as the payment of pecuniary penalties.
ASIC said it is alleging the executive directors breached their directors’ duties and will now be asking the court to implement a timetable for these proceedings to be progressed to trial.
“Since Storm’s collapse ASIC has been seeking compensation for investors as well as pursuing regulatory action against those companies and individuals intrinsically involved in implementing the Storm model,” ASIC Deputy Chairman Peter Kell said in a statement.
In May 2013 ASIC secured $1.1 million in compensation on behalf of two former Storm investors, Barry and Deanna Doyle.
ASIC also pointed to its appeal against a recent decision of the Federal Court to approve the settlement between former Storm Financial clients and Macquarie Bank Limited, relating to the fairness of the distribution of payment.
ASIC also pointed to an agreement last year with CBA for the bank to provide up to $136 million in compensation for Storm investors who borrowed with the bank.
ASIC said the Cassimatis matter will return to court for a directions hearing on 11 July 2013, at which time the court will order a timetable to progress the proceedings to trial and also hear argument on the question of costs arising from the court’s decision to dismiss the defendants’ application.
From my recollection of matters, Mannie adviced ASIC of every move they made. I think that Storm went much too far in what they did, but if anyone has to do the job of prosecuting the couple, it should not be ASIC. This smells of a cop out.
Absolutely agree with every one of the comments below!! – I was employed by a local fin planning firm in Cairns and I remember so many of the planners here notified ASIC of Storms adivce model, These planners were brushed off and basically told they had sour grapes because Storm was so successful!! – ASIC and the FPA are absolutely worthless!!
Spot on Barry! Asic are about as useful & proactive as the FPA.
Both organisations need a good reaming & be cleared of all the dead wood. Asic couldnt win a fight with any big end of town player just as the FPA & Kaplan couldnt sell a single course to anyone who didnt HAVE to do it. Takeaway the gun to our heads & the fpa & kaplan would sink within a 1/4…….hence this FOFA & CPD BS we must endure. Everyone knows its complete rubbish!!
Barrie Jon – ASIC – a total joke. A pathetic bureaucratic Organisation who hound the small end of business and run away from the large, serious issues in an almost cowardly manner. look at Storm, Trio, Westpoint, Bridgeport, FinCorp, etc., etc. ASIC was made aware of the actions of all of these companies well before each one fell over and did nothing about the problems that could have saved thousands of investors millions odf dollars in lost funds. Hopefully the current enquiry into ASIC will see this orgainisation dismantled and replaced by two or more focused and responsible organisations – but not likely to happen – we must take care of the failures in Government positions.
Good luck ASIC the Cassimatis money has long gone, best to throw them and those who knew what was going on (CBA etc.) in jail for 20 years that’s the best deterrent ever, but no lets waste tax payers money on pointless legal pursuits, 5 yeas already….
As a practising adviser with over 30 years experience, on reading the early reports about Storm Financial, my conclusion was clear and unequivocal: negligent advice. For any gearing exercise to work, you have to be able to claim the interest against taxable income. If you don’t have taxable income, any decent spreadsheet analysis will make the point. My understanding is that some of Storm’s investors were LITO and SATO recipients… and to borrow the maximum 80% of available equity in one hit..!!! Disgusting in the extreme. And as for the banks involved, I am not fond of banks generally but people forget they were merely the facilitators – Storm advisers gave the advice, period.
Again, another ‘soft’ and small target by ASIC. What about the managers in charge at CBA’s planning arm? Just why are they not to be held as accountable as the Storm founders??? What’s more, they’re still running the show somewhere else! ASIC stands for ‘A Simple Interventionist Council’ …
This is an absolute joke that it has taken ASIC nearly five years after the event to get to take these people to court.
The pain and suffering they have inflicted upon their clients and other good Financial Planners should see them go to jail.
What a toothless regulator