Perth businessman Bruce Drummond has lost his bid to recover nearly $5 million he lost in the collapse of Opes Prime from Perth stockbroking firm Euroz Securities.
Judge Tony Siopis today dismissed Mr Drummond's application in Perth's Federal Court.
Mr Drummond decline to give comment.
Mr Drummond had argued that he lost $4.7 million as a resut of using margin lender Opes Prime, following advice from Euroz.
He claimed that Euroz had failed to warn him of the risks associated with Opes Prime, which collapsed in March 2008, with about $1 billion in debt.
Mr Drummond's case is likely to set a precedent and may discourage other Opes Prime clients from pursuing legal action against their invetsment advisers.
In a one-sentence statement, Euroz simply noted that the Federal Court had found in favour of its subsidiary Euroz Securities with respect to all claims made against it by Eric Preston Pty Ltd.
Mr Drummond, a former car dealer, and his wife Judith are the directiors of Eric Preston.
Mr Drummond was an experienced investor and had been a client of stockbroker Richard Caldow since 1995, initially at Paterson Ord Minnett and latterley at Euroz.
Mr Drummond had used margin lender Leveraged Equities until May 2007 when he established a "securities lending and borrowing agreement" with Opes Prime.
As part of that agreement, Mr Drummond's company transferred the legal and beneficial ownership in its share portfolio to Opes Pime.
When administrators were appointed to Opes Prime in March 2008, Mr Drummond's company ranked as an unsecured creditor.
