Westpoint investors receive $24.5 million
Around 90 Westpoint investors and former clients of Glenhurst Corporation are about to receive their share of the $24.5 million in compensation for their failed investments.
This comes as a result of the Australian Securities and Investments Commission’s (ASIC’s) $2.5 million settlement with Glenhurst, reached on behalf of investors in the failed Westpoint group of companies.
The group collapsed in 2006, owing $388 million in total to approximately 4,000 investors, of which ASIC expects to recover around $100 million.
The regulator has since launched 19 class actions and reached six settlements with companies including Professional Investment Services ($5.9 million) and State Trustees ($13.5 million).
ASIC chairman Tony D’Aloisio said a key focus for the regulator is using s50 of the ASIC Act to seek compensation for investors who lose funds through failed investment schemes.
“In this case, we felt it was in the public interest to act on behalf of Westpoint investors who were unlikely to get satisfactory redress through other means,” he said.
AUTHOR
Milana Pokrajac
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