| Sentinel MPA (Financial Wisdom) |
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| Date of Funding: | 23 Oct 2001 |
| Plaintiff: | Numerous Investors |
| Defendant: | Financial Wisdom Ltd & Ors |
| Court: | Supreme Court of Victoria |
| Cause of Action: | Between 1993 and 1997 Sentinel Financial Services acted as investment advisers for a group of 200 airline pilots. It was claimed that those advisers acted in a negligent and fraudulent manner and caused losses of about $20 million to that group of investors.
At the time of the investment advice employees of Sentinel were the holders of proper authorities from Financial Wisdom (a subsidiary of the Commonwealth Bank). IMF funded the investor group in actions against Financial Wisdom under Section 819 of the Corporations Law which makes the givers of proper authorities in these circumstances liable to investors who are caused loss by the action of their advisers. |
| Result: | The case settled after test cases were successful in the Supreme Court of Victoria and in the Court of Appeal. IMF received $10.3M on direct outlays of $3.8M. |
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