Lawyers vouched for Westpoint

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Lawyers vouched for Westpoint
2006-07-10
NATIONAL law firm Freehills vouched for Westpoint's ill-fated fundraising methods and claimed the corporate watchdog was harassing its client. Freehills reassured the Australian Securities and Investments Commission in 2000 that each investor in Westpoint's Bayview mezzanine fund was "experienced in investing in securities". An official said the Freehills letter succeeded in knocking ASIC off the Westpoint trail for three years, as the building and finance empire netted hundreds of millions of dollars from thousands of small and inexperienced investors. The Westpoint empire, controlled by Perth businessman Norm Carey, eventually collapsed early this year, leaving about $300 million in unpaid debts to more than 3000 investors. Auditors, lawyers, financial planners and regulators have been drawn into the mire.
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