Powered by MOMENTUM MEDIA
subscribe to our newsletter
Clients of collapsed broker group $11.5 million out of pocket

Clients of collapsed broker group $11.5 million out of pocket

Creditors of an insolvent mortgage and financial services group are facing a multimillion-dollar haircut, as the liquidator investigates whether the director should be charged.

At least four related entities of Charterhill Group entered insolvency in January. The Adelaide-based group offered a range of services including mortgage broking, real estate marketing, property management, contract negotiation and SMSF advice.

Three of the Charterhill companies owe creditors a combined $11.5 million but have only collected $25,000 in payments, according to their six-month presentation of accounts.

Advertisement
Advertisement

Lending Solutions International is now under the control of the liquidator, Andrew Heard of Heard Phillips. It owes $10.2 million and has received $31 in payments.

Financial Wellness and EJ Property Developments are under the control of the receiver, Michael Basedow of Pitcher Partners. They owe a combined $1.3 million and have received $25,000 in payments.

Mr Phillips told Mortgage Business' sister publication The Adviser that it was too early to say how much money he would be able to recoup during the Lending Solutions liquidation, which is expected to end in April 2015.

“The company's assets relate entirely to loans to other Charterhill Group companies that are in receivership with Pitcher Partners and shares in other Charterhill Group companies that have an uncertain realisable value,” he said.

Mr Phillips said he would “conduct more comprehensive investigations” into Lending Solutions to “determine whether there are offences that have been committed and prosecutions that should be brought”.

Charterhill director George Nowak was ordered in February to surrender his passport.

Mr Basedow from Pitcher Partners had not replied to The Adviser’s request for comment by press deadline. 

Clients of collapsed broker group $11.5 million out of pocket
mortgagebusiness

 

Latest News

Westpac and the Commonwealth Bank’s share of the third-party mortgage market has spiked, in contrast to sharp declines from NAB and ANZ, t...

A non-major lender has dropped its fixed mortgage rates, becoming the fourth lender to reprice its offerings over the past two weeks.   ...

The interest lenders earn on mortgages is expected to remain under pressure this year and next, according to Moody’s. ...

FROM THE WEB
podcast

LATEST PODCAST: What drops in fixed rates may mean for the mortgage market

Do you think the banking royal commission recommendations could negatively impact competition in the mortgage market?