Fortrend boss Joe Forster to face a million-dollar legal bill over his failed fight with Shaw and Partners

After a failed two-year pursuit through the courts, Melbourne-based Fortrend Securities’ boss has been told he will have to pay millions of dollars in costs for a case that was ‘without merit’.

Joe Forster outside the Federal Court in Melbourne. Picture: Nicki Connolly

A Melbourne-based broker owes millions of dollars after losing two courtroom battles with a pair of former employees who left his firm for rival Shaw and Partners.

The Federal Court ruled on Tuesday that Fortrend Securities and its boss, Joe Forster, must pay for the two-year pursuit of two former brokers from the firm after finding the case was without merit.

The judge also took aim at Forster when finding he dudded the two men, Stephen Lyle and Chris Wollerman, of pay.

In a scathing judgment, Justice David O’Callaghan had earlier found Forster had engaged in an “outrageous” campaign against the two men, attempting to trash their reputation after a number of clients left Fortrend for Shaw and Partners after Mr Lyle and Mr Wollerman’s departure.

Fortrend is a Melbourne-based brokerage offering local clients access to US securities.

Records show Forster’s registration with US regulator FINRA is currently suspended.

Stephen Lyle and Christopher Wollermann joined Shaw and Partners.

On Tuesday, Justice O’Callaghan handed Forster and Fortrend a combined $181,152 penalty, saying the brokerage and its boss had failed to issue “a word of contrition” after withholding pay from the two former staff members for years.

In addition, Justice O’Callaghan made cost orders in the Shaw and Partners staffers’ favour, which is expected to result in Forster being required to pay as much as $2.1m in legal bills incurred over the lengthy legal squabble.

Forster had attempted to sue the two men claiming they had stolen confidential information from his business when they quit in late 2022, warning they had breached a non-compete.

But Justice O’Callaghan ruled in February the two had not misused confidential information.

“The notion that Fortrend’s business had been destroyed by the departure of two of its brokers and that it was entitled to millions of dollars in damages was always fanciful,” Justice O’Callaghan said on Tuesday.

Forster, who was rebuked for his conduct in the lengthy litigation, failed to attend the hearing on Tuesday.

But Shaw and Partners boss Earl Evans said the judgment vindicated the firm and its brokers.

“We were always comfortable that our position was actually fine, I think at the end of the day it shows we were right all along,” Mr Evans said.

“We also concur with the judge in regards to Mr Forster’s behaviour which was absolutely appalling through the whole case and the behaviour the advisers had to suffer through.”

Forster failed to respond to The Australian when contacted, however he has lodged an appeal against the earlier findings.

Forster has previously contacted this publication including filming and sending a clip from 1971 action film Dirty Harry in which the main character fires his 44-Magnum at the screen.

Originally published as Fortrend boss Joe Forster to face a million-dollar legal bill over his failed fight with Shaw and Partners