Full Federal Court knocks back an appeal by ex-Storm Financial heads Emmanuel and Julie Cassimatis

The couple who presided over one of Queensland’s worst corporate collapses have suffered another legal setback.

Storm Financial co-founders Julie and Emmanuel Cassimatis pictured in 2013.

STORM DAMAGE

The couple who presided over one of Queensland’s worst corporate collapses have suffered another legal setback.

In a 2-1 decision, the Full Federal Court last week knocked back an appeal by Emmanuel and Julie Cassimatis, who operated now-defunct Storm Financial in Townsville.

The couple had asked the court throw out a 2016 ruling that they had breached their duties as directors.

That decision saw them each subsequently fined $70,000 and banned from managing corporations for seven years.

Those slaps on the wrist seemed pretty paltry compared to the enormity of what happened to their clients.

Emmanuel and Julie Cassimatis pictured in 2013.

Storm crashed at the height of the GFC in 2009, resulting in about 3000 mum and dad investors losing an estimated $830 million. Many elderly clients lost their homes and life savings.

The court agreed with ASIC’s allegation that Storm used an improper “one size fits all’’ approach for clients, who were encouraged to take out high-risk loans to grow their portfolio of index funds.

Bank which had provided the margin loans were later sued and ended up shelling out huge sums in compensation. Commonwealth Bank forked out a whopping $268 million, Macquarie Bank gave up $82.5 million and Bank of Queensland parted with $17 million.

So will the couple try to go all the way to the High Court in one last ditch appeal? The odds of success appear slim and Emmanuel would not comment about legal matters when City Beat rang for a chat yesterday.

But he did let slip what he’s up to these days.

It seems he’s lending a hand to his son-in-law, Vasili, who operates the London Spuds food truck in Brisbane dispensing all kinds of … you guessed it … baked potatoes.

Cassimatis also mentioned he was working with a veterinary clinic and was “out on the front line’’ assisting people dealing with coronavirus issues.

He refused to specify precisely what he’s doing but assured us that he was “trying to help as many people as I can’’.

VIRAL LOOPHOLE

Speaking of the dreaded virus, Brisbane legal eagle Nicole Murdoch has slammed the State Government over what she maintains is a major problem with last week’s $4 billion rescue package for struggling businesses.

Treasurer Jackie Trad said $500 million had been set aside to provide interest-free loans of up to $250,000 to firms doing it tough.

But Murdoch complained yesterday that only businesses operating since July 1, 2017 are eligible.

“There is no reason this exception should apply and those businesses established since July 2017 are equally hit by the business collapses due to coronavirus restrictions. Why has the state abandoned the staff members of those businesses?” the Eaglegate Lawyers boss asked.

Brisbane legal eagle Nicole Murdoch.

“The State Government should not be choosing who should go under and who should survive, which is effectively what it’s doing with this loan exclusion.

“Newer businesses are more vulnerable as they have not had as much time to establish, so many of them will go under because the government does not extend the help to them that’s it’s offering to others.’’

Murdoch, who launched her business in late 2018 and now has two full-time employees and a casual, is directly impacted by the policy.

Trad defended the cut-off date yesterday as a way to “ensure businesses have the capacity to repay loans when normal business conditions return’’.

She said that businesses which have merged, renamed or otherwise changed but can still demonstrate a continuous trading history will still be able to apply for a loan.

Trad also highlighted other policies designed to cushion the economy, including payroll tax relief in the form of a two-month refund and three-month holiday.

“Already payroll tax refunds have been paid to almost 4000 business collectively worth more than $155 million in the last week, including businesses with less than three years trading history,’’ she said.