ASIC investigates BOQ role in Wickhams Securities ‘scam’ as lawyers launch class action
The Bank of Queensland (BOQ) and DDH Graham are facing a class action resulting from their alleged role in a scam perpetrated by banned adviser, Bradley Sherwin, using the bank's Money Market Deposit Accounts (MMDAs).
Global litigation firm, Quinn Emanuel Urquhart and Sullivan, filed the class action with the Federal Court of Australia, on Friday, reporting more than 350 clients lost more than $60 million as a result of Sherwin's actions.
Quinn Emanuel partner Damian Scattini, said the firm had been recruited to lead the open class action case, by Brisbane-based lawyer, Paul Watson of Watson Law Group, noting that the Australian Securities and Investigation Commission (ASIC) was continuing its investigation into the role played by BOQ and DDH Graham, in Sherwin's scam, which involved using the MMDAs to perform a series of round robin transactions.
"Niels Petersen, a retired police officer who served in the Queensland Police Force for 37 years, lost over $800,000 in savings as a result of the financial scam set up by Mr Sherwin and enabled by BOQ and DDH Graham," he said.
"After losing their superannuation savings, Niels and his wife Joyce 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.
"They trusted their bank and now they have been left with nothing. The Petersens, on behalf of all Sherwin victims, call upon BOQ to restore its credibility and customer confidence by making good the loss and damage its egregious breaches have caused to its customers.
"The bank's behaviour is unworthy of one of Queensland's biggest and most trusted financial institutions."
European litigation firm, Vannin Capital, has also backed the case.
AUTHOR
Nicholas O'Donoghue
Recommended for you
Financial advisory group AZ NGA has announced a strategic partnership with a $294 billion global investment manager to support its acquisition plans.
Shaw and Partners Financial Services has appointed a NSW state manager to lead its Sydney-based private wealth advisory team, alongside several financial adviser appointments from Ord Minnett.
Money Management compiles ASIC’s enforcement action against financial advisers and licensees during the third quarter of 2024, including sentencing, bannings and FSCP action.
Research house SQM has announced it will collect data covering managed account portfolios in response to industry demand, with the intention to launch benchmarks in due course.
