PMM Group wound up over lawsuit

Financial advisor Gui De Castro’s firm PMM Group and entity My Two Boys will be wound up, almost one year after investors lobbed $2 million in claims against them over a failed investment deal.

Perth businessmen Damien Rhodes and Ross Cargeeg launched two legal actions between them against PMM Group and My Two Boys in the state’s Supreme Court in July.

In it, they claimed they were misled by the financial advice and were owed damages for Mr De Castro’s alleged failure to transfer hundreds of thousands of dollars worth of shares.

The claim was bolstered in August, when the Supreme Court granted a freezing order over Mr De Castro’s assets to support the legal claims.

When the two companies failed to make good on the settlement deal they reached last year, the two businessmen sought to have liquidators appointed.

The defendants had pushed to save the companies, relying on financial documents to prove they were solvent and had an excess of assets over liabilities, even when taking into account the debts claimed.

In a judgment handed down in the Supreme Court late yesterday, Master Craig Sanderson said Mr De Castro’s off-set claim fell “well short” and determined the two companies had failed to establish their solvency.

In it, he said the defendants had made “no efforts at all” to pay what was owing, despite being served with statutory demands, and labeled the balance sheet drawn on behalf of My Two Boys “dubious”.

He ordered both companies to be wound up.