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Storm bosses to face the music

The liquidators of failed investment firm Storm Financial will call more than 40 witnesses to give evidence after being given the go-ahead to hold a public inquiry into the collapse.

Raj Khatri and Ivor Worrell of Worrells Solvency and Forensic Accountants last week announced they have secured $450,000 funding from the Australian Securities and Investments Commission (ASIC) to hold a public examination into the affairs of Storm founders Julie and Emmanuel Cassimatis.

Mr Khatri says the inquiry, which is likely to start early next month, will “complement the considerable investigative work already undertaken by ASIC” and will investigate “possible breaches of duty and corporate offences”.

Meanwhile, law firm Slater & Gordon has signed an agreement with the Commonwealth Bank to form the Storm Financial Resolution Scheme.

The law firm has been contacted by 1000 of the 2500 former Storm clients who had loans with the bank or subsidiary Colonial Geared Investments and says the scheme aims to resolve those claims in a “transparent, fair, efficient and cost-effective” manner.