Dear Prime Minister, Mr Morrison
The Sterling Group Collapse and ASIC Fiasco: $36 Million Compensation
My husband and I find ourselves in a devastating situation with all our money stolen and facing the very real threat of eviction from the home we chose to spend our remaining days in.
We paid upfront for a life lease with Sterling New Life after consulting a financial advisor and our accountant. We were told our money was to be held in a trust, was safe and would be paid back if we moved out or died. This was all LIES. The “Trust” was just a word and the money was used within the Sterling group in a Ponzi like scheme. We also purchased units which were apparently going to be listed within weeks on the ASX. This was again LIES, completely untrue in both action and intent. We are both retired and on a pension, what are we supposed to do now? We feel utterly let down by these crooks and a government agency which was supposed to provide consumer protection.
The Sterling Group of companies were registered with ASIC and they knew that some of the key people had been involved in previous companies which collapsed owing millions. Should this not have raised some red flags and required further investigation? These known offenders should have been prevented from setting up more companies to fleece unsuspecting consumers again. There were other concerns reported to them in 2015 and 2017 that that ASIC also failed to act on.
It is disgraceful and unacceptable that the Federal Regulator should make a conscious decision to keep vital knowledge a secret from the public knowing the catastrophic risk to older people.
Make ASIC Regulators stand up and take responsibility for their criminal negligence and instigate changes to ensure that this preying on innocent people never happens again.
ASIC failure, in its role as Corporate Watchdog, to protect vulnerable older people and retirees by not issuing early warnings about the Sterling Group could have prevented disastrous financial losses and the immense stress and worry that these victims are now feeling.
When ASIC has been questioned over the years about their lack of action, one of the key phrases used is “Buyer Beware” and that they cannot look after everyone. However, how can one be aware of something they are unaware of? The general public cannot be to blame when ASIC withholds vital evidence.
ASIC is granted a budget of over $400 million per year by Treasury. Are you not concerned that they seem to be no more than a bunch of glorified librarians? For many years ASIC staff have been paid performance bonuses and in 2017 this amounted to over $8 million yet the criteria for receiving these bonuses is unclear. Taking into account the number of corporate mishaps and collapses over the last 20 years could it be that ASIC staff feel that they should not ask difficult questions or challenge their superiors for fear of losing bonuses. The corporate regulator should be motivated by a belief in justice not monetary rewards.
I have already written to Mr Shipton and Mr Frydenberg, as have many others from our action group, expressing the anguish and distress that I am feeling but have yet to receive any response. I hope that you, Mr Prime Minister, as leader of this country will have more courtesy and see fit to take some action.
There were over 100 Life Leases issued so there are many people facing this dreadful situation. Decent, hard working individuals who have paid their taxes, served their country and help to shape Australia into the great country it is today. Now it is these very people who need help.
I am asking for an immediate resolution of this disaster by ASIC or the Treasury for these innocent people and request that $36 million be paid to the victims of the Sterling Group within 5 weeks.