ASIC freezes $2m payment to Storm Financial founders

The Australian Securities and Investments Commission has effectively frozen a controversial $2 million payment made by Storm Financial to its founders Emmanuel and Julie Cassimatis (right) just weeks before the group collapsed.

ASIC obtained orders from the Queensland Supreme Court freezing the payment after investigating the circumstances surrounding Storm’s collapse.

“ASIC is concerned that, on the information available to it, there does not seem to be a proper basis for the payment,” the corporate watchdog said in a statement.

The payment angered former Storm clients, many of whom have lost their life savings after following Storm’s advice and taking out huge margin loans.

The court orders restrain Emmanuel and Julie Cassimatis from “paying, transferring or otherwise dealing in any way with the money”.

ASIC will return to the court on 18 February for a determination on whether it is entitled to maintain the orders.

Related articles:

• Five lessons from the collapse of Storm Financial
• “We’ve lost money too” – Storm Financial founders break silence
• Queensland’s Storm Financial Group under pressure