Oak Capital moves from an up-market city address as it fights multiple legal battles
A finance company that hit headlines over a run-in with former A Current Affair reporter Seb Costello has moved from an upmarket city address as it fights multiple legal battles.
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A finance company accused of “unconscionable behaviour” has moved from an up-market city address as it fights multiple legal battles.
Oak Capital hit national headlines when one of its employees was chased into a toilet by former A Current Affair reporter Seb Costello.
It has now moved from the ritzy Collins Street address inside the Rialto Tower to office space in Flinders Street, Melbourne.
The company is fighting a landmark lawsuit from the Australian Securities and Investments Commission, which claimed it engaged in “unconscionable behaviour”.
That case lodged in the Federal Court centres on 47 loans worth a total of $37 million, which Oak Capital is defending.
“All our loans comply with relevant laws and industry standards, including the 47 illustrative examples relied upon by ASIC,” the company said in response to the ASIC case.
“We will continue to offer responsible, mid-tier non-banking lending solutions as we have done proudly for the last decade.”
The finance company is also battling a case filed in Victoria’s Supreme Court by builder Construct Homes, which alleged it charged as much as 108 per cent in interest and penalties on a business loan.
The builder, which is owned by Peter Aquino, claims it was charged more than $5 million in penalties and interest.
The Construct Homes case was due to go into mediation next week.
Construct Homes has alleged that it overpaid Oak Capital more than $2 million on the three loans from the sale of homes in Sorrento, on Melbourne’s Mornington Peninsula, and two properties in bayside Elwood.
The legal battle comes after Oak Capital settled a case with the Nine Network after Mr Costello pursued one of the finance company’s employees into a women’s toilet at a luxury hotel in Melbourne.
Mr Costello resigned from the network but has insisted it was not linked to the story.
The footage of the incident where it is believed Oak Capital was being asked about its practices has never aired.
Oak Capital’s chief executive Stephen Mitchell continues to encourage new investors into the mortgage lending business, according to documents available on the company’s website.
“At Oak Capital, our corporate values are transparency, security, and integrity – these values go far beyond the simple rhetoric that is often used in market for branding purposes but not adhered to in the culture of a firm,” Mr Mitchell said in the pitch to investors.
“We have no desire or plans to change our investment strategies in our Fund.”
The company has not updated its Facebook page since January.
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Originally published as Oak Capital moves from an up-market city address as it fights multiple legal battles
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