4th June, 2019
The Federal Treasurer
Hon. Josh Frydenberg MP
P.O. Box 6022
House of Representatives,: Parliament House
Canberra ACT 2600
Dear Mr Frydenberg
Collapse of Sterling New Life - ASIC CRIMINAL NEGLIGENCE
It is with distress that we right to inform you of how we lost $280,000 in 7 short months
ASIC who were supposed to be protecting us from White Collar Criminals has let us down.
In September, 2018 we bought a life lease through Sterling New Life. This was part of our financial plan for retirement. It was supposed to give us a roof over our heads for the next 40 years.
ASIC was investigating the company in June, 2018, but they did not warn the older Australian about investing in this company. It was not to be a get rich quick scheme but one which was supposed to look after our housing needs in retirement.
On the 3rd May, the company became insolvent, and we were told after having invested $280,000.00 7 months prior to this that they had run out of money and we could not get one cent repayment on this “rent for life” scheme which we had invested in.
Mr Treasurer, in 7 months the following has happened:
1. We have lost our life savings
2. Wife diagnosed with a rheumatologically condition of her hands and a skin condition.
3. Needs to now be under 2 specialists.
4. One medication which she requires is not on the PBS
5. We are not sleeping well at night as we are worried about our financial future
This is how it has affected us:
1. Rent for rest of life (We will not be able to afford $1,400.00 rent a month in retirement).
2. Rent increases by 2% per year.
3. We will have to use our super to buy a home to live in.
4. This means that we will have to draw from the Aged Pension for the rest of our lives
This puts us in a precarious situation of having a financial future which is uncertain.
If we had been warned of the Sterling New Life product by ASIC, we would still have our life savings and have a really good future not having to rely on the aged pension
Please pay immediately $36 million back to the victims so that we can continue our lives without being under such financial pressures.
Yours faithfully