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November 20, 2007 |
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WESTPOINT GROUP: ASIC Bans Former Adviser for 7 Years The Australian Securites & Investments Commission has banned Philip Gerard Wade, of Jandakot in Western Australia, from providing financial services for seven years. Mr. Wade provided financial planning services through Brighton Hall Securities Pty. Ltd. (Brighton Hall) between September 24, 2001, and September 12, 2003. During this time, he was a proper authority holder and then an authorized representative of Brighton Hall. Mr. Wade provided advice to clients from across the Perth metropolitan area. An ASIC investigation found that in 2001 and 2002, Mr. Wade: * failed to provide appropriate advice about Westpoint products to his clients, and * engaged in conduct that was misleading and deceptive, or likely to mislead and deceive, with respect to the Westpoint products. Mr. Wade has the right to lodge an application with the Administrative Appeals Tribunal for a review of ASIC's decision. Eleven banning briefs in relation to advisers who advised on Westpoint products are currently under consideration. About Westpoint Headquartered in Perth, Western Australia, the Westpoint Group -- http://westpoint.com.au/ -- is engaged in property development and owns or manages retail and commercial properties with a total value of over AU$300 million. The Group's troubles began in 2005 when the Australian Securities and Investments Commission commenced investigations on 160 companies within the Westpoint Group. ASIC's investigation led to ASIC initiating action in late 2005 in the Federal Court of Australia against a number of mezzanine companies in the Westpoint Group, including winding up proceedings. ASIC contends that Westpoint projects are suffering from significant shortfall of assets over liabilities so that hundreds of investors are at serious risk of not receiving repayment of their investments. ASIC also sought wind-up orders after the Westpoint companies failed to comply with its requirement to lodge accounts for certain financial years. These wind-up actions are still continuing. In February 2006, the Federal Court in Perth issued a wind-up order against Westpoint Corporation Pty. Ltd. The ASIC had applied to wind up the company on grounds of insolvency. The ASIC believes that Westpoint Corporation is responsible for arranging, managing and coordinating Westpoint Group's property projects as well as holding money for other group companies. The ASIC was concerned that Westpoint Corporation was unable to pay its debts, including its obligations under the guarantees given to the mezzanine companies to make good expected shortfalls in the repayment of amounts owed to investors. The Westpoint Group's collapse is considered by many as the largest of its type in recent years, with small investors being the biggest group affected. Investors are currently joining forces to commence a class action against Westpoint and its advisors. |
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