Court upholds freeze on $2m payment to Storm Financial founders
The Queensland Supreme Court today extended the freeze on a $2 million payment made to Storm Financial founders Emmanuel and Julie Cassimatis.
A spokesperson for the Australian Securities and Investments Commission (ASIC) said the freeze has been upheld until March 25, but that no court return date had yet been set.
Earlier this month ASIC obtained orders from the Queensland Supreme Court to freeze a $2 million payment made from Storm Financial to founders Julie and Emmanuel Cassimatis in December last year.
The orders restrain Emmanuel and Julie Cassimatis from paying, transferring or otherwise dealing in any way with the money. ASIC has also moved the Court for an injunction requiring the money to be returned to Storm Financial.
A statement from ASIC earlier this month said the regulator was concerned that there did “not seem to be a proper basis for the payment”.
A Brisbane news article later reported that allegations were made in the Queensland Supreme Court that the Cassimatis’ knew the company was heavily in debt when they paid themselves the dividend. According to the article, the court documents allege the couple prepared cash flow statements on December 15, 2008, that showed they couldn’t meet their debt commitments. This was then confirmed by professional advisers.
The failed company now owes creditors more than $80 million.
AUTHOR
By Beaman
Recommended for you
A new advice licensee set up by former WT Financial advisers has helped financial adviser numbers return above the 15,600 mark this week.
Two separate studies have discovered the majority of advised clients prefer to pay a flat fee for financial advice, while unearthing how much they are willing to pay for the service.
Financial services software Iress and digital community platform Ensombl have partnered up to strengthen the technology skills of financial advisers and paraplanners through a new initiative.
The corporate regulator has commenced “urgent” Federal Court proceedings against a Brisbane-based financial adviser in connection to financial advice and activities on client trading accounts.
