WIG rejects Westpoint litigation offer
Tony D'Aloisio
Westpoint Investors Group (WIG) has rejected an offer by the Australian Securities and InvestmentsCommission last week to take legal action on behalf of the group, which is seeking compensation for its members’ failed investments.
The group has instead renewed its call for a royal commission into whether ASIC is responsible for the losses incurred by investors in the failed Westpoint property scheme, according to WIG president Graham MacAulay.
“Why is ASIC not responsible for the losses of investors in Westpoint,” he asked in a WIG media release yesterday, at the same time saying in his “personal opinion” the “proposed litigation will happen shortly after hell freezes over”.
He said ASIC was responsible for losses by failing to recognise and take the necessary action back in 2000 that Westpoint Mezzanine schemes were unregistered managed investment schemes.
In announcing the litigation, ASIC chairman Tony D’Aloisio said that Westpoint was a case where ASIC believed that the conduct of those involved fell short of what the law expected.
“We consider there is a clear public interest in using ASIC’s powers to pursue compensation for Westpoint investors,” he said.
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