Pacific First Mortgage Fund claim against Philip Sullivan, Thomas Swan, Stephen McCormick & Ian Donaldson
Maurice Blackburn is pleased to confirm that Trilogy Funds Management Limited’s claim against Messrs Sullivan, McCormick, Donaldson and Swan in the Federal Court has been successful. On Friday, 18 December 2015 Justice Wigney delivered his decision and reasons for judgment following a long trial in the first half of 2014.
His Honour observed that this claim involves a tale of a rapacious Gold Coast property developer with grandiose plans, a compliant and obliging valuer who lacked independence, and a responsible entity of a managed investment scheme [City Pacific Limited], the officers of which appeared unable or unwilling to say “no” to the developer, or to otherwise exercise appropriate care and diligence to ensure compliance with the scheme’s mandated policies and procedures. In the end, the developer failed and the security property was found to be worth many millions of dollars less than both its supposed valuation and the outstanding loan. The scheme [Pacific First Mortgage Fund] and its members were left significantly out of pocket.
Read the judgment.
Read the final orders.
Read Maurice Blackburn's media statement.
On 2 March 2016 Justice Wigney entered judgment against Messrs Sullivan and McCormick for $62,947,486.86 plus costs and against Messrs Swan and Donaldson for $10,565,042.52 plus costs.
The respondents have until 23 March 2016 in which to lodge any appeal to the Full Court of the Federal Court of Australia.
Unit holders in the Pacific First Mortgage Fund should direct any enquiries they have regarding these matters to Balmain NB Corporation Limited as sub-asset manager of the Fund on telephone number 1800 194 500 or email email@example.com.