Hundreds of Henry Kaye victims could join a multi-million dollar class action against the Australian Securities and Investment Commission, National Investment Institute, Henry Kaye and other government regulators, it was revealed yesterday.
Leading human rights and litigation lawyer Eric Vadarlis indicated outside the Federal Court in Melbourne yesterday that hundreds, possibly thousands, of seminar victims could sign up for the landmark Australian court case.
Vadarlis said the claimants had been devastated with ASIC’s conduct in overseeing the enforceable undertaking against Henry Kaye and NII.
“ASIC did not properly scrutinise the enforceable undertaking handed down by the Federal Court to Kaye and NII to refund moneys owed,” Vadarlis said.
Between March 1 and September 21 last year, NII claimed its courses were ASIC-approved.
“Kaye and NII owe one claimant more than $80,000, another plaintiff paid just over $55,000 for one of Kaye’s seminars,” Vadarlis said. “NII ignored the enforceable undertaking and hundreds of claimants are owed substantial amounts of money – they have not seen a cent from NII.”
Vadarlis said the enforceable undertakings, handed down to Kaye and NII, were passed onto a Kaye and NII appointed “independent” ombudsman, whom ASIC never met or communicated with.
“Kaye and NII supposedly appointed this independent ombudsman to process the claims, however, we have not met this ombudsman nor been notified of any claimant meetings,” he says.
“The claimants have not even been told who the ombudsman is, “ Vadarlis says.
Vadarlis said that in order to be an independent ombudsman, the ombudsman would have had to be ASIC approved, come from the legal profession and have at least five years experience,
“ASIC did not closely scrutinise this so-called independent ombudsman,’’ he said.
Vadarlis says ASIC had also been too slow to act on early concerns about National Investment Institute, brought by consumer advocates such as Neil Jenman.
“ASIC has failed to take action earlier, now Kaye and NII are having a creditors meeting.
“Kaye and NII have gone into voluntary liquidation with one of Kaye’s companies as the main creditor; the claimants will never see the moneys owed to them,” Vadarlis predicted.
“ASIC should have taken this matter seriously earlier: the government and other regulatory bodies around Australia have let down the public, it is far too late now.” Vadarlis concluded.
ASIC, now seeking to have Kaye surrender his passport, had no comment late yesterday. Kaye is due back in the Federal Court on February 10.
