Sandhurst Trustees to be hit with class action over Wickham Securities
Sandhurst Trustees will face a class action worth $27 million after it failed in an appeal to prevent the handing over of documents that may show it failed in its obligations to investors.
The class action brought by Shine Lawyers on behalf of more than 100 investors will proceed after Sandhurst lost an appeal last week to prevent the handing over of the documents.
The appeal related to a request for paper and electronic records regarding Sandhurst's role as trustee of failed property lender Wickham Securities with the initial case first brought to the Federal Court of Australia (Queensland District Registry) in March 2013 by a husband and wife who had invested $240,000 with Wickham.
In June last year the Federal Court ruled in favour of the couple — Graeme and Marion Clarke — and directed Sandhurst to hand over the 39 documents that included trustee reports, financial statements, trust deeds and communication with the liquidators which eventually wrapped up the Wickham business.
However in July 2014 the Federal Court ruled that an appeal by Sandhurst be allowed however this was dismissed on Thursday last week with the Clarke's agreeing to be act as lead applicants in a class action against Sandhurst being brought by Shine lawyers for other investors with Wickham.
The decision to force Sandhurst to hand over the documents does not imply that Sandhurst was at fault with the appeal decision stating that the handing over of documents would allow the Clarke's and their legal advisers to ascertain whether they should obtain relief through the courts.
Brisbane-based Wickham Securities collapsed in 2013 owing $27 million to 300 investors with director Bradley Sherwin appointing PPB Advisory as voluntary administrator.
Sherwin also operated Sherwin Financial Planners and DIY Superannuation Services out of the same office as Wickham Securities.
AUTHOR
Jason Spits
Recommended for you
With a large group of advisers expecting to exit before the 2026 education deadline, an industry expert shares how these practices can best prepare themselves for sale to compete in a “buyer’s market”.
Australia has marked a decade among the best countries for retirement, according to Natixis, but with high inflation threatening their retirement goals, a third say they would get professional advice to improve their chances.
When it comes to the risks of acting as a responsible manager at an AFSL, compliance firm Holley Nethercote has shared a range of red flags that could see them facing disciplinary action from the corporate regulator.
Wealth management platform provider Netwealth has announced a partnership with FinClear to streamline trading capabilities for advisers.
