The West Australian government will contribute towards legal action being taken against the di-rector of a mortgage broking company put into liquidation last year.
The West Australian government will contribute towards legal action being taken against the di-rector of a mortgage broking company put into liquidation last year.
Global Finance director John Margaria is facing charges relating to efforts to induce investors to contribute $3.75 million to a Perth property development. The charges arose from the Gunning inquiry into WA’s mortgage broking industry.
It is understood that $62 million of investors funds were put at risk when Global Finance went into liquidation.
WA Fair Trading Minister Doug Shave says he has given approval for Global Finance liquidator Simon Read to proceed with recovery action against Margaria, and says the government will give up to $55,000 for the action.
“The government is concerned that investors maximise the return on their investment,” Shave says.
“While funding this type of legal action by a liquidator is not traditionally the state’s responsibil-ity, the government is keen to help in this case.”
Shave has been under attack for refusing to quit his portfolio after the Gunning inquiry’s first re-port, tabled earlier this month, criticised the support his ministry had given to the Finance Bro-kers Supervisory Board.
