A Melbourne financial adviser is attempting to sue two former bosses of the Westpoint group to claw back debts in a stalled investment project.
AAA Financial Intelligence adviser Ian Bristow has filed documents in the Supreme Court of Victoria seeking damages against Richard Beck, Simon Bell and Kebbel Funds Management Limited, now known as Finchley Central Funds Management Limited.
Kebbel was the main fundraising channel for the failed Westpoint group, which collapsed in late 2005 owing $300 million to 4000 investors.
It is believed that up to 30 of Bristow's clients who invested in Finchley's retirement village development in the Melbourne suburb of Heidleberg are still awaiting the partial return of their capital, interest payments and a 20 per cent project completion bonus.
The development, along with project in Sydney called Gilead and Perth-based development Riverside Pier has suffered extensive setbacks.
Bell has written to investors explaining the delays and has repeatedly pledged to repay their money.
Bell was left in charge of Finchley in January 2006 following the resignation of Beck and fellow former Westpoint directors John Dixon and Neil Burnard, who are all under ASIC investigation.
"We are far from happy with the management of this project since Simon Bell took over control of it in early 2006 when he purchased Richard Beck's share of Kebbel," Bristow wrote on his company's website.
"Simon gave us assurance after assurance, promise after promise.this has dragged out for over a year," Bristow said.
Finchley advertised 12 per cent returns on the investment, of which 7.2 per cent would be paid as the project progressed and 4.8 per cent would be paid as accrued interest.
Bristow says the investors received advice from Finchley that the balance of the capital and interest will be paid when the firm receives approval from Foreign Investment Review Board, which was expected by mid July.
Bristow put his former advice practice Money Matters Financial Solutions into liquidation last year following the collapse of Westpoint.
He says he has alerted Finchley to the corporate regulator to no avail.
"ASIC have not responded as usual despite the fact that Finchley have not paid their debts when they were due."
ASIC is proposing tough news standards for unlisted, unrated property schemes in the wake of several high-profle corporate collapses.
Bell did not respond to InvestorDaily's enquiries.
