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.
Recommended for you
Shaw and Partners has merged with Sydney wealth manager Kennedy Partners Wealth, while Ord Minnett has hired a private wealth adviser from Morgan Stanley.
Australian investors are more confident than their APAC peers in reaching their financial goals and are targeting annual gains of more than 10 per cent, according to Fidelity.
Digital advice tools are on the rise, but licensees will need to ensure they still meet adviser obligations or potentially risk a class action if clients lose money from a rogue algorithm.
Zenith Investment Partners has lost its head of portfolio solutions Steven Tang after 17 years with the firm, the latest in a series of senior exits from the research house.
