Sixty
investors alleging director of Coral Investments Ltd Tony Lusby stole over
$12.3 million they invested in his investment scheme have been told to refile
their legal claim in Australia.
Investors claim Macquarie Bank should make good their losses.
Tony Lusby set up Coral Investments in
2007. At investment seminars throughout
New Zealand he encouraged investors to pay into an Australian Macquarie bank
account he controlled. They were told 75
per cent of their money would be placed on deposit with Macquarie, the rest
used to purchase listed Australian securities.
Over $12 million passed through the account. The High Court was told the Macquarie account
is now empty. Mr Lusby transferred the
funds to offshore accounts around the world.
He is believed to be in Chile now.
Aggrieved investors sued in the High
Court at Auckland, claiming against Mr Lusby, Coral Investments and Macquarie
Bank. Associate judge Sargisson said the
case should be heard in Sydney. That is
where the money was. Investors allege
Macquarie Bank failed to properly supervise the account and is liable for
“knowing assistance” in not stopping Mr Lusby emptying the account. Macquarie denies liability. Judge Sargisson ruled Australian courts are
the better venue for assessing Macquarie’s liability, if any. Australian courts are more familiar with
rules governing banking practice in that country.
Lifestyles
Investment Group v. Coral Investments – High Court (15.11.16)
16.158