The corporate watchdog’s decision to launch legal proceedings against another of the dealer groups embroiled in the Westpoint collapse has been branded time wasting by the Westpoint Investors Group.
ASIC director of enforcement Jan Redfern informed media earlier this month that the corporate regulator intended to lodge a case against Dukes Financial Services, now known as Brazen.
However, those caught up in the failed property investment believe the regulator is merely grandstanding, as many of the dealers, including Dukes, have no money to pay back investors since being placed into liquidation.
“I think this is again grandstanding by ASIC by going for these people now. Why didn’t they go for them before? It’s now been two years for them to do anything and they haven’t done anything,” Westpoint Investors Group president Graham MacAulay said.
“It’s more about making a noise and making it look like they’re actually doing something.”
Westpoint liquidator IMF has also previously said it did not believe it was in the interest of investors to pursue Dukes and Glenhurst Corporation as neither groups had any money left.
However, what has angered many is that Dukes and Glenhurst Corporation are two groups that since being placed into liquidation have closed up shop and reopened under a new name.
Dukes became Brazen, while fellow dealer Glenhurst Corporation has reopened as Churchill Morgan Global.
ASIC is seeking to claw back $63.2 million in damages from Dukes, Bongiorno Financial Advisers, Glenhurst Corporation, Masu Financial Management and Professional Investment Services (PIS) to compensate around 729 investors.
A number of the groups, including PIS and Masu, are due to return to court this month.
The regulator is also suing Westpoint’s directors for $245 million on behalf of around 492 investors.
