Fallen Banksia barrister has entered bankruptcy following fines

Norman O’Bryan has declared bankruptcy after being ordered to pay millions in damages — but the worst could be yet to come.

Fallen Melbourne blue-blood barrister Norman O’Bryan has declared himself bankrupt after being ordered to pay millions in damages for trying to rip off Banksia class action clients.

Mr O’Bryan declared himself bankrupt in late October listing himself as unemployed, corporate records show.

The declaration follows the Supreme Court ruling Mr O’Bryan and four other lawyers engaged in “egregious conduct in connection with a fraudulent scheme” when they tried to charge Banksia investors $19m in legal costs.

The costs related to a class action centred on the collapse of the non-bank lender which was settled for $64m in 2018.

Non-bank lender Banksia collapsed in 2012, freezing some $660 million in deposits.

Mr O’Bryan and fellow barrister Michael Symons were also ordered to be removed from the roll of persons admitted to the legal profession.

Mr Symons has since declared himself bankrupt as well.

The ruling marks a momentous downfall for Mr O’Bryan who had been a lawyer of choice for the Australian Securities and Investments Commission.

Mr O’Bryan’s brother – Stephen O’Bryan, QC – was the first commissioner of the state’s Independent Broad-based Anti-corruption Commission and is serving as the government appointed special manager to Crown Resorts.

His father and grandfather were both Supreme Court judges.

But the worst for Mr O’Bryan could be yet to come, with his case referred to Victoria’s public prosecutor for further investigation, meaning criminal charges could flow.

Fallen barrister Norman O'Bryan.

The federal government is pushing to introduce new laws to clamp down on the profits generated by the class action and litigation funding industry.

Kyabram-based Banksia collapsed in 2012, freezing some $660 million in funds deposited by almost 16,000 mainly rural retirees.

At the time, Banksia was the largest mortgage debenture company in the nation, collecting money from investors and providing residential and commercial property loans to a mostly rural clientele.

The downfall of Banksia sparked a round of fresh collapses in the non-bank lending sector.

It also highlighted the gulf between heavily regulated banks and privately-owned investment houses, which engage in bank-like activities but whose deposits are not guaranteed by the government as they are not authorised deposit-taking institutions.