Some investors in disgraced finance broking firm Graeme Grubb Finance Broker were repaid today, with 383 investors receiving around $10 million, or 48.7c in the dollar, from liquidators at RSM Bird Cameron.
The full text of an RSM Bird Cameron announcement is pasted below
Investors who placed money with the disgraced finance broker Graeme Grubb received a substantial repayment today.
A total of approximately $10 million was paid to 383 investors representing a distribution rate of 48.7 cents in the dollar on claims totalling $20.7 million. This first distribution is in line with previous stated expectations of the liquidator Mark Conlan at RSM Bird Cameron.
"I'm pleased to be able to make the first payment and I remain confident of making further payments to investors. Ultimately, investors should receive between 62 and 78 cents in the dollar." Mr Conlan said.
Mr Conlan added "A number of complex recovery matters remain to be resolved and the total payment to investors is dependent upon these recoveries."
In the early 2000s, about 7000 people were affected by the collapse of several WA finance broking firms including Graeme Grubb Finance Broker. This "finance broker scandal" was the subject of three government inquiries including an independent inquiry established under former District Court judge Ivan Gunning and a Royal Commission.
In June 2000 Graeme Grubb confessed to stealing more than $5.2 million from investors when he was director of the firm, Graeme Grubb Finance Broker. This occurred over a two year period from October 1997 to October 1999. Mr Grubb was jailed for 10 years in 2000 on 33 charges of stealing.
