Denials from Bank of Queesland over Storm Financial will not stop legal proceedings against the firm, according to Slater & Gordon.
Litigation firm Slater & Gordon has confirmed its intention to continue legal proceedings against Bank of Queensland (BOQ), despite the bank's denial it acted improperly or dishonestly in connection with clients of Storm Financial (Storm).
Slater & Gordon practice group leader Damien Scatinni yesterday dismissed BOQ's claims there was no evidence it had engaged in any misleading and deceptive or unconscionable conduct in relation to its lending to clients of the failed advice firm.
"Tell it to the court. We have very clear evidence that there was an unholy, very close relationship between the Northward branch of Bank of Queensland and Storm Financial and no doubt the managers will be able explain that relationship when they are in the witness box," Scatinni told InvestorDaily.
"They can pretend it's not happening, but we will soon serve them with legal proceedings. We're very confident. Bank of Queensland was hand in glove with Storm Financial."
BOQ in essence is "swinging in the breeze" regarding its handling of Storm, unlike the proactive approach taken by Commonwealth Bank of Australia, he said.
"We'll see which approach was more sensible at the end of the day," Scatinni added.
Slater & Gordon is representing around 300 BOQ clients in the proceedings.
In a statement released to the market yesterday, BOQ said to date it had not received any legal proceedings.
"BOQ has to date received no legal proceedings from Slater & Gordon and is not under formal investigation by ASIC," the statement said.
"BOQ was not a corporate banker of Storm Financial, and did not have any relationship with Storm Financial other than quoting with other banks to provide customers with home equity loans."
The bank denied it had any commission or bonus relationship with Storm.
It also denied it provided advice on or managed complex leveraged gearing equities or promoted Storm products.
The bank did, however, confirm it has around 319 customers linked to Storm with aggregated loans of around $105 million.
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