Report : Tricia Takanawa
Monday, 31 October 2011
CBA and Slater & Gordon collude to deny hundreds of CBA victims a fair settlement.
The compensation in the Storm Resolution Scheme offered to the CBA victims after Storm was forced into voluntary administration by CBA was calculated by CBA in collaboration with Slater & Gordon solicitors. This compensation package was engineered behind closed doors by CBA and Slater & Gordon successfully covering up the full extent of CBA's margin loan vulnerability despite repeated efforts by the chairmen of the CBA victims support group to have input. In the end the statements by the chairmen of the CBA victims support group indicate that they were simply bludgeoned into rubber-stamping the CBA offer. The CBA / Storm Resolution Scheme was promoted to the world at large as a fair compensation package for CBA victims when all along it was a CBA Get out of Jail' work of genius.
Damien Scattini from Slater & Gordon is reported to have said that customers who took out margin loans to invest with Storm would be remunerated for 90 per cent of the funds they used as security on the loan' (fig A). This deliberate play on words by Mr Scattini created much excitement & enthusiasm among Storm clients / CBA victims giving them false hope.Â The plan was obviously to encourage as many victims as possible to accept the CBA package.Â The value of the actual compensation which was offered in the CBA / Slater & Gordon scheme was an amount only equal to the buffer (10%) discounted by a further 10% (fig B).Â This equates to a mere 9% of the value of funds needed as security and not 90% as asserted by Mr Scattini. To further add insult to injury Mr Scattini reportedly said, the agreement was as good a result as clients could have hoped for on a good day in court'.
Interviews with numerous Slater & Gordon clients revealed 2 key points. The first being that many who had accepted the meagre offerings from CBA indicated that these offers were accepted under protest. Most victims who accepted these offers were exhausted, did not have the funds to get justice in court and simply were at a point in their lives where they just wanted to move on'. A great number expressed regret at being forced to accept these offers and in doing so signed away all rights for any future additional compensation from the CBA. Many also felt guilty in accepting these substandard offers, believing that it would then be more difficult for other fellow Storm clients to stand up to the CBA. Secondly, a number of clients believed when they were told by CBA (and reinforced by Slater & Gordon) that Storm had been issued their margin calls but did not pass them on. This false statement left the clients with the impression that Storm was at fault, that CBA was blameless and the white knight that had come along to help them. Accordingly these clients felt there was no option but to accept CBA's ‘charity’ without questioning CBA's need to have them sign away all future claims against the CBA.
There is however a prevailing view that should former Storm clients have accepted a CBA offer either under duress' or under ‘false pretence’, then there is strong avenue for seeking further compensation. This path requires evidence and the Plain Truth already has a significant volume of material supporting this. The evidence in our possession has been gathered and supplied to us by a few Storm clients dedicated to justice. We know many people have material in their possession which is strong and useful (even if they may not
think so) and some may not be aware of the potency of these documents. The Plain Truth asks that you provide any evidence you may think is relevant. Such evidence may take the form of:-
– Diary notes
– Audio tapes
– ANY (old or recent) margin call notices
Please forward copies only to The Plain Truth, PO Box 2783, New Farm QLD 4005.