Broker expects criminal charges
Sydney Morning Herald
Thursday June 11, 2009
THE corporate regulator is expected to clarify within weeks if it will launch criminal and civil penalty proceedings against directors of Opes Prime Stockbroking over the share-lending firm's sensational collapse, a court has been told.The revelation about possible progress in the Australian Securities and Investments Commission's 15-month probe into Opes emerged in the Victorian Supreme Court yesterday as receivers for Hawkswood Investments continue to pursue Opes's former managing director, Laurie Emini, for a debt of $2.17 million.Mr Emini's barrister, Haydn Carmichael, told Associate Justice Melissa Daly, without providing any evidence from ASIC, that it was "on the cards" Mr Emini would face criminal and possibly civil penalty proceedings arising from the ASIC investigation.But the Victorian Supreme Court judge heard yesterday that even Mr Emini's lawyers are not certain exactly what ASIC is focusing on and, they argued, that situation severely hampers his ability to contest the demand for the $2.17 million issued by Hawkswood Investment's receiver, Salvatore Algeri.Hawkswood was part-owned by all three Opes Prime directors, and all three were Hawkswood directors. Mr Algeri has filed an application for summary judgment against Mr Emini, alleging he has failed to repay a director's loan.But Mr Emini disputes there was a loan. His lawyers say that even if there was a loan, there is nothing to show the terms of that loan.The court heard Mr Emini's former colleagues, Julian Smith and Anthony Blumberg, had conceded their liabilities to Hawkswood and repaid what Mr Algeri terms a company loan.Mr Emini wants the court to halt Mr Algeri's demands for the $2.17 million at least until ASIC's position is clearer. The judge reserved her decision.Meanwhile, a battery of senior counsel heads to the Federal Court this morning for the first of two days of complex discussion about a controversial $254 million settlement offered to Opes Prime's unsecured creditors by its former financiers, ANZ and Merrill Lynch.The deal, which needs preliminary court approval before it can be presented to Opes creditors meetings, would hinge on all creditors agreeing to terminate all litigation against ANZ and Merrill Lynch.Opes's liquidator has the support of ANZ, Merrill Lynch, and ASIC, but Lavan Legal, the law firm leading a group action for 11 per cent of Opes Prime creditors, is against the deal.
© 2009 Sydney Morning Herald
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