The Australian Securities and Investments Commission announced today it has reached a settlement with the founder of the failed Westpoint property investment group, Norm Carey.
In an action that commenced in October 2008, Mr Carey had claimed unspecified damages from ASIC for alleged misfeasance in public office and negligence, arising from ASIC’s decisions in late 2005 to start winding-up proceedings against two Westpoint Group mezzanine finance companies.
As a result of the settlement, Mr Carey’s action has been dismissed.
ASIC said that Mr Carey has unreservedly withdrawn all allegations made against it and its officers in connection with ASIC’s dealing with Westpoint.
Mr Carey and companies associated with him have agreed to pay $75,000 towards ASIC’s legal costs in defending the claim.