ASIC warned of 'Grimm Reaper' of Collins Street more than 10 years ago

he Australian Securities and Investment Commission's clamp down on the "Grimm Reaper" of Collins Street last week came ten years after regulators were warned about the dealings of Melbourne stockbroker Bradley Grimm.

The Victorian State Government Hansard shows MP Luke Donnellan – now minister for Ports and Road and Road Safety – raised concerns about Mr Grimm's activities in February 2005 at public company Equity Partnerships and another of his private businesses Campton, referring to him as the "Grimm Reaper of the Melbourne stockbroking" world.

The ASIC investigation is in the early stages and might not lead to any action being taken against Bradley Grimm or Ms Ash.Credit: Peter Braig

Mr Donnellan's warnings about Mr Grimm targeting "retired and elderly investors" came while Mr Grimm's wife Vanessa Ash was working for ASIC during her eight-year stint as a lawyer at the regulator between 2000 and 2008.

Last week Mr Grimm and Ms Ash were forced to hand over their passports in the wake of a major investigation by ASIC into a series of allegedly unauthorised withdrawals and suspect charges relating to client funds through their company Ostrava Equities and related companies Ostrava Asset Management and Ostrava Securities.

ASIC investigation is in the early stages and might not lead to any action being taken against Mr Grimm or Ms Ash.

In 2005, Mr Donnellan requested a review of Mr Grimm's "fraudulent investment activities and the obtaining of financial advantage by deception" under parliamentary privilege.

Most of the money pocketed

"Mr Grimm is indeed the grim reaper in the Melbourne stockbroking world," Mr Donnellan said.

Mr Donnellan alleged Mr Grimm raised $1m from mum and dad investors leading up to and during the dot-com boom in the late 1990s and early 2000s through investment company Equity Partnership.

"I am led to believe that most of the money ended up in his pocket or in the private company of Campton Pty Ltd," Mr Donnellan alleged in his statement to Parliament.

He also alleged the company had not kept proper accounts, a concern also raised by Equity Partnership's auditor Peter Moran in the company's 2005 accounts, who declined to give an opinion on whether the company's financials were kosher after not receiving source documents requested to conduct his audit.

Mr Grimm rejected the allegation made by Mr Donnellan about Equity Partnerships saying the MP had been misled by an "embittered former business associate". Last week he has claimed the Ostrava investigation is the result of a "bitter family dispute".

"A meeting of Equity Partnership shareholders in April 2005 unanimously passed a series of resolutions rejecting the allegations and exonerating me from any wrongdoing," Mr Grimm said in a statement.

Mr Grimm is indeed the grim reaper in the Melbourne stockbroking world

MP Luke Donnellan

"I was not contacted by ASIC or any other Government body regarding these matters. I am not aware of any investigation."

ASIC spokeswoman declined to comment on its current investigation into Ostrava.