The Australian Securities and Investment Commission has recovered $24.5 million on behalf of people who invested in Westpoint Group.
The Australian Securities and Investment Commission has recovered $24.5 million on behalf of people who invested in Westpoint Group.
In a statement ASIC said the in the latest settlement it has recovered $2.5 million for 90 investors in Glenhurst Corporation.
In the past 12 months ASIC has reached six settlements.
Since 2007, ASIC has launched 19 actions for the benefits of Westpoint investors.
In a statement ASIC said, "In all, investors are expected to see a return of about $100 million of the $388 million in losses as a result of the settlements, returns from liquidators and returns from companies not in liquidation."
ASIC chairman Tony D'Aloisio said a key focus for ASIC is using s50 of the ASIC Act to seek compensation for investors who lose funds through failed investment schemes.
'ASIC's use of s50 in the Westpoint case is very important for the Commission. Our focus is, as it should be, on identifying the most appropriate and effective regulatory outcome on behalf of retail investors," he said.
"In this particular case, we felt it was in the public interest to act on behalf of Westpoint investors who were unlikely to get satisfactory redress through other means', Mr D'Aloisio said.
See statement from ASIC below:
Westpoint investors in ASIC's class against Glenhurst Corporation Pty Ltd (Glenhurst) are to receive their share of $24.5 million recovered to date by the Commission.
The Glenhurst settlement, worth $2.5 million, is one of six reached by ASIC on behalf of investors in the Westpoint Group seeking compensation for their failed investments. The settlement will provide returns to 90 investors and payments have been posted during the course of this week.
Other settlements reached by ASIC over the past 12 months were with Professional Investment Services Pty Ltd ($5.9 million); Bongiorno Financial Advisers Pty Ltd and Bongiorno Financial Advisers (Aust) Ltd ($2.6 million) and State Trustees Ltd ($13.5 million). A settlement agreement with Joseph Dukes and Barzen Pty Ltd (formerly Dukes Financial Services Pty Ltd) ($1 million) is subject to approval by the Federal Court and, if approved, will take the total compensation to $25.5 million. These settlements have provided benefits to almost 1000 investors.
In November 2008, ASIC also settled a claim on behalf of investors against Masu Financial Management Pty Ltd. The terms of this settlement remain confidential between the parties.
Since 2007, ASIC has launched 19 actions for the benefit of Westpoint investors. In all, investors are expected to see a return of about $100 million of the $388 million in losses as a result of the above settlements, returns from liquidators and returns from companies not in liquidation. Further Westpoint proceedings are going forward in relation to directors, auditors and three Australian financial services (AFS) licensees. ASIC hopes to resolve these claims during 2010-11.
ASIC Chairman, Tony D'Aloisio, said a key focus for ASIC is using s50 of the ASIC Act to seek compensation for investors who lose funds through failed investment schemes.
'ASIC's use of s50 in the Westpoint case is very important for the Commission. Our focus is, as it should be, on identifying the most appropriate and effective regulatory outcome on behalf of retail investors. In this particular case, we felt it was in the public interest to act on behalf of Westpoint investors who were unlikely to get satisfactory redress through other means', Mr D'Aloisio said.
The Westpoint group of companies collapsed in 2006 owing $388 million to approximately 4000 investors.
