‘Grimm Reaper of Melbourne stockbroking’ jailed for losing victims’ life savings

A man once referred to as the “Grimm Reaper of Melbourne’s stockbroking world” has been jailed after losing the retirement savings of vulnerable victims, including a hospital cleaner whose husband was dying.

Prison guards ushered Bradley Grimm, 56, from the County Court and into custody on Thursday after he pleaded guilty to pilfering funds from people planning their retirement and putting it into the bank accounts of private companies he owned.

Financial planner Bradley Grimm arrives at the County Court.Credit: Eddie Jim

Grimm, previously of Kew, was charged in 2018 with 13 dishonesty offences but that was later reduced to three counts of engaging in dishonest conduct while running a financial services business.

The court heard that during 2015 Grimm was working as a financial adviser with Ostrava Equities when he dealt with his three female victims.

One was a 74-year-old retired hospital cleaner, another a 60-year-old office manager and the third a 60-year-old switchboard operator.

The court heard victim one had recently retired from her job as a hospital cleaner and was looking for help managing her superannuation as her husband was becoming increasingly unwell from asbestosis.

The office of the Ostrava business operated by Bradley Grimm and his wife, former Australian Securities and Investments Commission senior laywer Vanessa Ash. Credit: Justin McManus

Grimm visited the couple at home late in 2014 because the woman was reluctant to leave her husband alone. She told Grimm she wanted to make sure she would receive regular pension payments as her husband was on oxygen and did not have long to live.

“You told her she could make better money through you, that it would not be a problem for her to get a $500 per week pension, and that some of her money should be invested with other clients’ money,” Judge Michael O’Connell said.

Vanessa Ash at home in Kew. Credit: Wayne Taylor

The victim did not read the documents she was asked to sign and her husband, who previously managed her finances, was too ill to do so.

The second victim was about to turn 60 and concerned she did not have a retirement plan in place. She had no assets but $100,000 in funds and $55,000 in super available.

“She reported previous financial setbacks, this was her life savings. You told her the money would triple in five years no matter which way the market went,” O’Connell said.

“You did not tell her you had a personal interest in the company.”

In both cases, the court heard the victim’s money was transferred into self-managed super funds and used to purchase shares in companies Grimm was the sole director of and which had no real market value.

“You knew how wrong that was,” the judge said.

The court heard the third victim had undergone major surgery and wanted to ensure she could access support payments during her recovery. Grimm transferred $72,000 out of her super with some of the funds later moved into a hedge fund he wholly controlled.

In mid-2015, ASIC had begun winding up Grimm’s companies, and he was later restrained from providing financial services by the Federal Court in October. But the court heard he continued to provide financial advice and services to the third victim.

“None of that was disclosed,” O’Connell said.

The third victim, the court heard, was subsequently forced to sell her home and live in “impoverished” conditions at the back of a friend’s house and then in a unit without proper heating during the pandemic.

“As an Australian financial service licensee you were well aware of obligations to act honestly and in the best interest of your clients, and to disclose relevant information about financial products in advice. You abused that position of trust,” O’Connell said.

Grimm, a married father of two, attended a private Catholic school in Sydney before obtaining a commerce degree and diploma in financial services. He then went on to work as a stockbroker at Macquarie before starting his own company in 2004, which operated out of Collins Street.

He now runs a “successful” car rental business and had made full restitution to two victims, with the third being compensated by a Commonwealth scheme.

After O’Connell revealed Grimm would be jailed immediately for at least nine months, the 56-year-old appeared surprised, unclipping his watch and throwing it to his wife who was sitting sobbing in court.

Grimm first came to public notoriety in 2005 when Luke Donnellan, then a Labor MP, referred to him as “the Grimm Reaper” of Melbourne’s stockbroking world, under parliamentary privilege. Those comments related to the now disgraced financial services guru’s involvement at public company Equity Partnerships and private business Campton.

“Mr Grimm is indeed the Grim Reaper in the Melbourne stockbroking world,” Donnellan said in a statement to parliament.

Donnellan alleged Mr Grimm raised $1 million from mum and dad investors leading up to and during the dot-com boom in the late 1990s and early 2000s through investment company Equity Partnership. “I am led to believe that most of the money ended up in his pocket or in the private company of Campton Pty Ltd,” Donnellan alleged.

The corporate watchdog first took civil court action in 2015 against Grimm and his companies following a series of investor complaints.

Grimm’s wife and co-director, Vanessa Ash – a former senior lawyer at the Australian Securities and Investments Commission – was also investigated by her former employer.

In 2016, the Federal Court banned Grimm from working in the financial services sector for 20 years. He was also disqualified from managing a corporation for 15 years. Ash was banned from working in financial services for 10 years and from managing a corporation for seven years.

Ash remains admitted to practise law in Victoria. She was never charged with any criminal offence.

O’Connell jailed Grimm for 18 months. He must serve nine months before he will be released on a good behaviour bond for 18 months and pay a $5000 fine.

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