Legal investigations regarding the collapse of Tarrants have turned sour, with a legal adviser forced to deny claims he made personal slurs against the advice group's managing director.
Boutique insolvency company Jamieson Louttit & Associates has been appointed as the liquidator for financial advisory firm Tarrants.
The move by the advice group to enter liquidation last month comes on the back of potential legal proceedings that could eventuate from former clients invested into the Astarra Strategic Fund and other collapsed financial schemes.
Around 70 of Tarrants' clients are now seeking legal advice from Wollongong law firm Maguire and MacInerney, along with up to 40 clients from advice firm Dominion WFS.
While the law firm is currently investigating Tarrants' involvement with the Astarra Strategic Fund, Maguire and MacInerney partner Mark McDonald rejected claims he had told former clients that Tarrants managing director Ross Tarrant was going to jail and had been trading without an Australian financial services licence.
"Certainly not. Any discussions or advice I give to my clients is privileged and I would certainly not discuss it outside this room. But I have never said to a single soul that Ross Tarrant will be going to jail," McDonald said.
He also said that while the firm's examination into Tarrants continued, he had no need to approach Tarrant as part of the investigation.
"It's not my role to speak to a possible defendant. I have no business in speaking to Ross Tarrant at all - I speak to clients, that's who I speak to," he said.
He also said Maguire and MacInerney would not approach Tarrants to request documents on research or due diligence.
"No not at all, not ever. That is the sort of thing that would be part of legal proceedings," he said.
The firm's investigations had involved meeting with a number of experts in the field who had financial planning and finance qualifications, he said.
"I probably shouldn't name them because I'll be getting expert reports from them," he said.
"I'm in a position of reviewing all of the advice Tarrants has given the clients and all of the research and investigations Tarrants did into these products, and obviously my investigations have revealed information which is of great assistance to me in comparing cases, but I'm not going to disclose my case.
"These clients are looking to get legal advice as to their rights. It's up to me to decide the nature of the action that I take against Tarrants."
McDonald said one of those actions could potentially be to sue the advice firm.
"That certainly is a potential action. The only action I'm going to take against Tarrants is legal proceedings," he said.
McDonald could not confirm how long the investigation would take before he decided on a course of action against Tarrants.
"That's very difficult for me to answer because it's a huge job - there are a lot of people I've been dealing with in terribly bad situations," he said.
"I'm being extremely careful and cautious and proceeding very deliberately and carefully in my investigation and in any decisions that I make. This is very serious litigation that I'm investigating."
