Loans Voided in Aus Court calls for Victim funding

MEDIA RELEASE
6 October 2009-10-06

Loans Voided in Australian Court calls for Victim Funding

In the wake of a NEW SOUTH WALES SUPREME COURT ruling last month, where a Judge ruled to void loans made by lender Tonto Home Loans Australia Pty Ltd, Suzanne Edmonds of EUFA has written to the Minister of Commerce and Justice calling for a legal fund to be set up urgently for BlueChip Victims. The Australian case demonstrates the position of agency and could open the door on the law for BlueChip victims. However most victims cannot afford to defend their positions against the lenders call on securities but under law everyone is entitled to a defence.

Suzanne Edmonds said from Tauranga today “Funding has been discussed previously with the Minister but no progress has been made; and victims are being denied their ‘human rights’ to defend actions taken by lenders.”

Mrs Edmonds adds “No person should be denied a defence.”

In New Zealand hardened street criminals are provided a defence but there is an unjustifiable and noticeable point of difference and prejudice by governments attitude between street crime and white collar crime.

The New South Wales ruling relates to Joint Venture deals which reflect many similar scenarios to the BlueChip cases that are burdening victims by way of mortgage securities.

The judgement also states “The Australian Securities and Investments Commission (ASIC) has intervened in the proceedings in its role in upholding the public interest in the proper functioning of the Australian financial system.”

In a PWC report dated, 17 November 2005, to the Independent directors of BlueChip Financial Solutions Ltd, including Messes Luxton and Creech, it was identified that Australian finance companies were providers of securitised finance to BlueChips mortgage Broker, Tasman mortgages.

These finance companies trans Tasman relationships are bound to comply with trans Tasman agreements between Authorities of both countries, which could mean an opening for an joint investigation to uphold “the public interest in the proper functioning of the Australian” and New Zealand financial and economic relationships.

The Minister, sitting MP’s including the Commerce Select Committee, have been provided evidence by EUFA, Professionals and individuals as to the seriousness the BlueChip victims face, including the inability to be defended. Committee member MP John Boscawen has tirelessly researched the BlueChip fiasco thoroughly and EUFA will continue to draw on his support to progress these matters with the Minister and within parliament.

ENDS

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