In a judgment handed down by a three-judge bench of the Federal Court in Adelaide last week, the non-institutional AFSL holder was named as the winning party, convincing the court that the former clients had engaged in “contributory negligence” to the losses they sustained after investing in the now-defunct Norton Capital and Neovest investment management firms.
The court ruled that the amount previously awarded to the clients be reduced by 15 per cent, bringing the total owed by WealthSure and former authorised representative David Bertram to $875,506.80 – less than half of the original damages awarded.
The former clients were accused on contributing to the negligence by maintaining a “profligate lifestyle and excessive living expenses” and well as making “reckless statements to financiers”.
In addition, the court ruled that the directors of Norton Capital and Neovest – entities described in the judgment as having run a “Ponzi” scheme – were also liable, apportioning the damages, which further reduced the amount owed by WealthSure.
Speaking to InvestorDaily, a spokesperson for Cosoff Cudmore Knox – WealthSure’s solicitor – said the decision reflects a “win” for WealthSure and Mr Bertram on the most substantive issue in the dispute.
“The judgment against them has been reduced by a little more than half which is due to the court deciding that contributory negligence did apply and that therefore the Seligs’ claim had to be reduced,” the spokesperson said.
