Investors
numbering 120 individuals filed for a class action lawsuit against the Bank of
Queensland amidst failed investments with Storm Financial Company.
Investors
borrowed money from different banks including BoQ and invested those funds
using financial advices from Storm Financial. The investments failed when the
stockmarket plunged during the global financial crisis. Image courtesy of couriermail.com.au
The
class action suit is lead by Brisbane based Mr. and Mrs. Robert and Janis Lee.
They borrowed $411,000 from BoQ, $300,000 of which went to investment with
Storm Financial. The couple owned properties amounting to $450,000 and $157,433
in superannuation. Robert Lee was working as a bricklayer but his job was
hampered when he had a knee replacement surgery. They considered capital
investment as a steady income stream. For which they borrowed money from BoQ
and invested it to Storm.
The couple’s claim
argues that:
if the Lees' investment did not increase in value or if there was a significant sharemarket downturn, the couple had no way of avoiding default and risked losing their property.
The
claim also argues that BoQ breached the Banking Code, because the bank
allegedly failed to know that there was a significant risk of loss, and they
failed to consider the couple’s reason for borrowing money with them.
BoQ
is also accused of not interviewing the Lees before lending the money. The bank
is also charged of alleged ties with Storm Financial because they gave Storm
Clients with high priority and charged a lower interest rate on their loans.
