Storm Financial boss 'leased $7m jet'

A corporate jet and an investment model for clients described as the "holy grail"
were major goals for the bosses of collapsed advisory firm Storm Financial, a court
has heard.
Storm Financial founders Julie and Emmanuel Cassimatis took the stand at a Federal
Court public examination in Brisbane on Wednesday.
The court heard Mr Cassimatis leased a $7 million jet through research company
Ignite, of which he was a director, because he had always wanted a jet.
He denied obtaining the jet just to impress clients.
Craig Wilkins, counsel assisting liquidators Worrells, asked Mr Cassimatis if the
money would have been better spent developing software to identify clients getting
close to margin calls.
"No," Mr Cassimatis replied. "It's been a long-term goal of mine to acquire a jet."
Ms Cassimatis, who took the stand before her husband, told the court of a financial
model for clients called a balanced asset plan.
She described the model - made up of 48 per cent shares, 38 per cent cash and 14 per
cent property - as the "holy grail" of financial positions.
"We described that balanced asset allocation as the holy grail of a position we felt
you should want to get to by the end of your plan," she told the court.
Realistically, though, most people needed to reach the percentage balance slowly
over time, she said.
Mr Wilkins asked if that same "balance" was given to clients, regardless of whether
they were a 30-year-old male working in the mines or a pensioner.
"Yes," Ms Cassimatis replied.
She explained that the balance was "an end result" for the client.
The court also heard Ms Cassimatis said in an affidavit that clients were meant to
manage their own margin loans.
Mr Cassimatis wrote to the federal and state governments asking for money after the
company struck trouble, the court heard.
Storm Financial, which once claimed to have about $4.7 billion of funds under
management and more than 14,000 clients, went into administration in January 2009.
The Federal Court ordered the company be wound up in March with debts of around $80
million, leaving investors with huge losses and fears they may never recoup their
money.
The examination continues.