Westpoint liquidator in legal bid to recover $6m in planner commissions
WestPoint liquidator PricewaterhouseCoopers has commenced proceedings in the Federal Court to recover at least $6 million in client commissions from a number of financial planners associated with a former Westpoint project director.
The liquidator yesterday submitted ‘statements of claim’ to the court against Kebble Capital, Palentia, and Needlers End Nominees, among other unnamed planners associated with York Street Mezzanine Pty Ltd director Richard Beck.
Liquidator and PricewaterhouseCoopers partner David McEvoy said the statement of claim was for “commissions earned by Beck as a result of alleged breaches of director’s duties”.
“We are seeking repayment of the commissions, at approximately $6 million at a minimum,” he said, although he added that this amount may “increase significantly as the litigation proceeds, as it is likely other parties will join this claim”.
Beck was also named in a simultaneous legal action by the liquidator in the Federal Court yesterday against a number of directors of Ann Street Mezzanine Pty Ltd, another Westpoint project, for damages of about $30 million
McEvoy said the claim against directors Norm Carey, Richard Beck, Lynette Schiftan, John Dixon and Graeme Rundle relates to “funds raised in Ann Street that were used for purposes other than in Ann Street project development, as a result of which creditors in Ann Street have allegedly suffered loss”.
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