STORM BREWING
Cassimatises to appeal Federal Court judgment
THE founders of Storm Financial have appealed a Federal Court judgment the pair had breached directors’ duties declaring “the battle is not over.”
Last month Emmanuel and Julie Cassimatis were each fined $ 70,000 and disqualified from managing corporations for seven years.
Their Townsville- based financial planning group collapsed in late 2008 and 3000 investors suffered portfolio losses of more than $ 3 billion.
Mr Cassimatis said he wanted to “expose the wrong- doers” and that the appeal was “the first shot” against the banks and corporate regulator Australian Securities and Investments Commission.
One of the investors who led the Storm consumer action group, Sunshine Coast resident Mark Weir, said “good luck to him” because he believed the banks’ culpability in the collapse had not been exposed.
STORM Financial founders Emmanuel and Julie Cassimatis are going back to court to appeal a judgment they breached their duties as directors, claiming the battle is “just beginning”.
Meanwhile, one of the investors who led the Storm consumer action group, Sunshine Coast resident Mark Weir, said “good luck to him” because he believed the banks’ culpability in the collapse had not been exposed.
The Townsville- based financial planning group crashed in late 2008 as the sharemarket tanked with 3000 investors sustaining portfolio losses of more than $ 3 billion, although actual equity losses were estimated to be around $ 830 million.
Last month the Federal Court imposed civil penalties of $ 70,000 each on the Cassimatises, who were previously found to have breached their duties as directors.
They were also disqualified from managing corporations for seven years.
Corporate regulator Australian Securities and Investments Commission took the case to court, with Justice James Edelman finding some investors received advice that was inappropriate to their personal circumstances and that the Cassimatises had not acted with reasonable care and diligence as directors.
Russell Law has now filed an appeal on behalf of the Cassimatises on grounds including that Storm had been solvent and that the appellants acted honestly and in accordance with the wishes of its shareholders.
Mr Cassimatis told the Bulletin he wanted to expose “the wrongdoers”.
“The battle has not ended. It’s just beginning,” he said.
“The appeal is just the first shot at the individuals with ASIC and the banks.
“I promised my clients that I would battle for them and ourselves ’ til my last breath and I have been doing that.”
He claimed he had been gagged by ASIC and court actions but that now it was “his turn”.
Mr Weir, chair of the Storm Investors Consumers Action Group, said he did not see how overturning the judgment would do anything for former clients but he wished them “good luck”.
He said Storm liquidators found no evidence of misappropriation or fraud.
“I felt ASIC went on a witch hunt more for appearance than anything else,” Mr Weir said.
“They had to be seen to be doing something.
“I believe ASIC, if they had been fair dinkum, would have been more robust in determining the culpability of the banks’ exposure to Storm.”
THE BATTLE HAS NOT ENDED. IT’S JUST BEGINNING EMMANUEL CASSIMATIS