Clients’ fury at advisers’ sentences
FOR the hapless investors of Storm Financial, it is the final act in a litany of betrayals.
Some 9 ½ years after the financial terror began, the founders of the failed Townsville- based wealth adviser, Emmanuel and Julie Cassismatis, yesterday walked away with fines of $ 70,000 each and bans on managing companies for seven years.
“It’s a kick in the guts. People lost millions,” Townsville investor Eric Dundas said.
“I think it’s disgusting,” said another, Steve Reynolds.
And while the rage might have softened, still the anger burns most, not with the Cassimatises, but with the banks and then, perhaps, with the regulators.
Financiers doled out billions of dollars in lending through the financial planning firm but managed to limit compensation to several hundred million dollars, while their lenders escaped sanction.
Mr Dundas, 68, said he lost more than $ 400,000 and recovered $ 3000.
“That ain’t a fair amount. That’s why, at 68 years of age, I’m still at work.”
A mechanic, Mr Dundas operates a mobile vehicle roadworthy service.
He said investors had lost far more than the fines meted out to the Cassimatises.
But still he blames the banks.
“The thing that sticks in my mind is everything was going fine ‘ til the GFC came along. Then the banks foreclosed on Storm. Once the banks foreclosed on Storm, that was the end of all of us,” Mr Dundas said.
“The one thing I’m pleased about is they are having a royal commission into the banks.
“They were lending to people like there was no tomorrow.”
Steve Reynolds said he lost over $ 700,000 including the family home.
He said he and some other investors had paid out more than $ 70,000 in legal expenses fighting the banks to get compensation.
“I think ( the $ 70,000 fines are) disgusting considering the amount of money that was lost,” Mr Reynolds said.
He also believed the Cassimatises should have been permanently banned.
He said the Australian Securities and Investments Commission’s role was “absolutely disgusting”.
“No one at the Bank of Queensland and no one at the Commonwealth Bank were held to account,” he said.
“I’m glad to see banks in the spotlight now.
“Will it change lending practices? Who knows.”
IT’S A KICK IN THE GUTS. PEOPLE LOST MILLIONS ERIC DUNDAS