Notorious property promoter Henry Kaye has emerged as a key figure in the
collapse of the Westpoint property group, says today’s Eureka Report.
The property spruiker, currently before the courts facing a charge of
dishonestly obtaining a financial advantage by deception, played a pivotal role
in linking property investors with the Westpoint scheme which is now expected to
cost investors more than $450 million.
The story, by Alan Kohler, reveals a raft of developments in the Westpoint case
that could lead to a long awaited review of Australia’s financial planning
- Melbourne law firm Slater and Gordon in conjunction with Perth-Based
litigation funding group, IMF Australia, is said to be planning to launch a
class action against 120 financial planners as early as next week.
- The peak body of financial planners, The Financial Planning Association of
Australia, has revealed that five of its members are under investigation in
relation to the Westpoint scandal.
- Westpoint targeted new immigrants in Sydney’s Chinese community circulating
special brochures in Mandarin which made outrageous claims relating to
Westpoint’s expected returns.
- Among the victims of the collapse that face losing the bulk of their life
savings is a cancer victim, a retiree and a pregnant mother of four.
According to Kohler: “In 35 years of finance journalism I have never come
across a story that has affected me so deeply. The Westpoint collapse is worse than the $5 billion collapse of HIH
Insurance because of the greed and deception of financial planners.
Meanwhile, the Melbourne Magistrates’ Court has adjourned the Kaye case –
which could result in up to 10 years’ jail for the property promoter – until 5 May.
The full Westpoint story will be available later this afternoon on Eureka