Bank of Queensland faces multi-million dollar class action lawsuit over accused fraudster

LIVING in a caravan in their 60s was not what Niels and Joyce Peterson pictured for their retirement. That’s why they’re suing the Bank of Queensland.

Sherwin Financial victims

THE Bank of Queensland is facing a multi-million dollar law suit for allegedly failing to protect its mum and dad customers from an accused fraudster.

More than 350 people with BoQ Money Market Deposit Accounts lost more than $60 million, law firm Quinn Emanuel Urquhart and Sullivan claims.

The Sydney-based firm has filed a class action, open to all Money Market Deposit clients, against the bank and its agent DDH Graham in the Federal Court of NSW.

BoQ says it will defend itself against the legal action.

Quinn Emanuel partner Damian Scattini says disgraced financial adviser Bradley Sherwin allegedly used the accounts administered by DDH Graham to perform a series of round robin transactions involving the BoQ accounts.

And as a result, many claim to have lost their life savings.

“Under the terms of the contract, BoQ’s product disclosure statement said they would watch out for suspicious transactions,” he said.

“It was on their watch that a Ponzi scheme was being operated. Its agent handling the accounts even had staff who raised concerns about these transactions, but nothing was done — and our clients lost their life savings.”

Niels and Joyce Petersen are battling BoQ after losing their life savings to an allegedly fraudulent financial planner. Picture: Jack Tran

He said among the alleged victims were retired Queensland police officer Niels Petersen and his wife Joyce, who lost more than $800,000 in savings and were forced to live in a caravan before being moved into a housing commission home.

“The Petersens and other BoQ customers are honest mum and dad investors who have worked hard their entire lives to save for their retirement,” he said.

“They trusted their bank and now they have been left with nothing.”

Ms Peterson told the Courier Mail last month that the couple had spent the past three years struggling to get by on the aged pension, unable to afford regular visits to see their seven grandkids, who live in other cities, as often as they like.

“It’s hard to just occasionally go out to dinner,” Ms Petersen said.

The Australian Securities and Investments Commission is also investigating the BoQ and DDH Graham in relation to transactions made for the Sherwin Group.

The Sherwin Group went into liquidation in 2013.

Mr Sherwin has been charged with 33 fraud offences for illegally using almost $10 million in clients’ bank accounts between July 2009 and Christmas Eve 2012.

He has not entered a plea and his case is ongoing in the Brisbane Magistrates Court, with a committal hearing set for June 20.