ASIC has reached a compensation agreement worth $13.5 million over failed property investment scheme run by Westpoint Group, the forth such settlement approved by the Federal Court.
As a result of the settlement with trustee State Trustees of Melbourne approximately 525 investors in the failed property group will be able to to submit a proof of claim in order to receive part of the distribution of settlement funds.
Action against State Trustees by ASIC began in March of 2008, with ASIC alleging that State Trustees breached its duty to the note holders and failed to comply with its obligations under the Corporations Act.
ASIC estimates that group members are likely to recover “approximately 71 cents for every dollar they invested in mezzanine notes”.
Previously ASIC has reached settlement agreements with Masu Financial Management, Professional Investment Services and Bongiorno Financial Advisers who were involved with the scheme.
State Trustees, has until March 15 to pay the settlement sum to ASIC.
