Dangers In A Legal Jungle
Money Magazine Australia|April 2019

Investors who have been ripped off on a grand scale can take their case to court but the financial and emotional costs can be high

Susan Hely
Dangers In A Legal Jungle

It was supposed to deliver the 380 clients of jailed financial planner Bradley Sherwin some compensation after he defrauded them of their $60 million life savings. But the class action against the Bank of Queensland and its agent DDH Graham delivered them only $12 million, a payout that was almost matched by the $11.75 million bill from their lawyers, funders and administrators. The service providers wanted 98% of their payout, leaving the claimants with a miserly $250,000. The dudded investors, who had been in the courts for six years, felt screwed over once again, says Beth Spence, who together with her husband, Mick, lost their retirement nest egg of $500,000. But this time it was by the very people who claimed to be “on their side”.

“To get nothing or minuscule amounts takes away any trust. It makes us think, why did we bother?” says Beth.

While some class actions go according to plan, often they don’t. As the Spences point out, the claimants were expecting a payout more in the order of $80 million to compensate for the lost earnings and financial hardship.

Thankfully, the costs bill was cut to $8 million by Justice Murphy of the Federal Court and the paltry $250,000 was upped to $4 million – still a long way from the $60 million lost. In a further blow, only 53 claimants received any money because conditions (statutes of limitations) about timing and ruling out any further legal claims agreed to in mediation cut out 75% of claimants.

Beth says the result for the claimants “is as devastating as when this all started almost six years ago”.

Denne historien er fra April 2019-utgaven av Money Magazine Australia.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

Denne historien er fra April 2019-utgaven av Money Magazine Australia.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

FLERE HISTORIER FRA MONEY MAGAZINE AUSTRALIASe alt
An outrageous, beautiful monopoly
Money Magazine Australia

An outrageous, beautiful monopoly

Telstra's mobile business is a cash machine with few competitors, giving it the highest returns in the world.

time-read
4 mins  |
July 2024
Drop the anchor to judge value
Money Magazine Australia

Drop the anchor to judge value

Buying and selling decisions should be based on where a stock price is going, not where it has been.

time-read
3 mins  |
July 2024
Powering the AI boom
Money Magazine Australia

Powering the AI boom

Beyond the software and chipmakers, where will the energy come from?

time-read
3 mins  |
July 2024
Get into life
Money Magazine Australia

Get into life

Tucked inside super are products that can protect you from life's inevitable uncertainties.

time-read
5 mins  |
July 2024
Paths to home ownership
Money Magazine Australia

Paths to home ownership

Taking the road less travelled can sometimes deliver unexpected benefits.

time-read
5 mins  |
July 2024
Sold! Quick ways to add value
Money Magazine Australia

Sold! Quick ways to add value

Small, strategic changes can have a big impact on the look and feel of your home. And get you a better price on auction day.

time-read
5 mins  |
July 2024
Money lessons the kids need to know
Money Magazine Australia

Money lessons the kids need to know

Your children can learn a lot from your past money mishaps. Here are eight financial conversations I have had with mine.

time-read
4 mins  |
July 2024
Property-investing rules: are they likely to change?
Money Magazine Australia

Property-investing rules: are they likely to change?

The pressure for the government to curb the tax benefits of tax concessions, such as negative gearing and the capital gains tax discount, is unrelenting. Most recently, independent senators David Pocock and Jacqui Lambie proposed five options for paring back investment property tax concessions, with savings to the Federal budget of up to $60 billion over the next decade.

time-read
3 mins  |
July 2024
What's love got to do with it?
Money Magazine Australia

What's love got to do with it?

A rollercoaster of emotions could be driving poor crypto behaviour.

time-read
3 mins  |
July 2024
Are we ready to be cash-free?
Money Magazine Australia

Are we ready to be cash-free?

Saying goodbye to our piggy banks too soon could leave small businesses in the dark when problems arise.

time-read
2 mins  |
July 2024