INVESTORS SEEK MONEY FROM FAILED FUND
Written on the 23 January 2013
A RISKY Brisbane investment fund has been placed into administration and a class action is already under investigation to recover the $30 million reportedly owed to investors.
Wickham Securities offered high interest loans with funds it raised from the general public and there is about 300 self-funded retirees caught up in the scheme.
Shine Lawyers is investigating claims against the Spring Hill-based company and the firm believes the nature of its business could leave it open to claims.
Wickham Securities, which is run by Brad Thomas Sherwin and Peter John Siemons, has been compared to Banksia Securities, which collapsed owing $650 million to 16,000 investors.
Sherwin, a financial planner, has also run Sherwin Financial Planners since 1986.
Shine Lawyers will investigate claims against both the directors of Wickham and against the individual financial advisors who recommended the investments to their clients. Australian Securities and Investment Commission has already alleged misconduct against Sherwin.
“Being more focused on putting a buck in your own pocket or that of your company; rather than putting your client’s interests as number one priority is clearly not acceptable," says Shine head of professional negligence Jan Saddler.
Grant Sparks from PPB Advisory has been appointed administrator and a creditors meeting is scheduled for February 6.
Saddler is concerned about an increasing number of enquiries in relation to misleading and deceptive conduct of directors and financial advisors operating in Queensland.
“What we are seeing is financial companies offering extremely high risk advice without full and proper consideration of each individual’s own personal circumstances and risk tolerance,” says Saddler.
“Over the last 6 to 12 months, we have been observing a marked increase in calls from investors who have suffered significant losses after relying on erroneous or flippant financial advice.”
Brisbane Business News has sought comment from Sherwin.