Financial Wisdom has disputed claims that it gave bad advice to Australian artist Ken Done, who wants $53.4 million in damages.
Done is suing the Commonwealth Bank of Australia (CBA)-owned dealer group and one of its former licensees Wayne Chen for more than $53.4 million, alleging he was given bad advice on risky investments.
“Financial Wisdom maintains that any involvement it had with Mr Done’s affairs was of a very minor and limited nature and was not a cause any loss to Mr Done,” a CBA spokesperson said.
In documents filed with New South Wales Federal Court, Done’s lawyers claim the dealer group “failed to provide prudent sound investment and securities advice” to Done and his wife Judith and affiliated trusts, which include their superannuation savings.
The couple say they lost approximately $26.3 million as a result and now have an investment portfolio of just $8 million. They claim they would have had an investment portfolio – excluding real property – with a net value of approximately $61.5 million at 30 September 2007.
“[Financial Wisdom] did not ever provide a warning that the Done Group was not appropriately weighted and that its weighting was becoming increasingly risk prone,” the Dones argue.
Chen, who lives on Sydney’s lower north shore, was licensed to give advice under Financial Wisdom from October 1, 2003 until July 29, 2005.
His former chartered accounting practice, Bentley Barton Partners was placed into liquidation in October 2005.
Done is also suing his former principal accountant and former director of Ken Done International, Gary Taylor.
Prominent financial services barrister Tony Hartnell is representing Done and could not be reached for comment.
At June 30, 2001 the Done investment portfolio held a 55 per cent weighing in core Australian shares and trading stocks. By June 30, 2005 this had been reduced to nine per cent.
During that period the weighting of venture capital and loans increased from 34 per cent to 60 per cent.
