Perth litigation firm IMF has not minced words with financial planners who collected lofty commissions at the expense of thousands of investors hung out to dry by Westpoint.
In a recent briefing paper, IMF CEO Hugh McLernon, whose firm is suing three dealer groups involved with the failed property scheme, gave a tongue-in cheek, plain English example of the advice he said financial planners should have given to potential investors.
"I have come across this investment. These guys from Western Australia have set up a $2 company which has no assets and no track record in property development. The idea is you lend money to the company. You don't get any security but they will give you an IOU. I am getting three times the amount I normally get for putting you into this investment but that isn't the reason I'm doing so.
"It is a lucky circumstance that I think this is the best possible investment for your money while at the same time giving me the best possible result. By the way I am not insured and the company which is actually giving me the advice has no assets."
