Prime Trust Judge May Be Forced to Stand Aside


Unitholders may be interested to read the attached articles from The Sydney Morning Herald dated 18 September 2012 and the Australian Financial Review dated 19 September 2012.


The articles discuss whether Justice Gordon from the Federal Court will retain carriage of the proceedings initated by ASIC due to a previous involvement in another retirement village case involving Mr Lewski.  We note that a similar issue occurred at the Public Examinations in August 2011 when Justice Efthim disclosed that he too had been involved in a prior case involving Mr Lewski.


We find it extremely interesting that Mr Lewski's Counsel raised the issue in Court yesterday that Mr Lewski was involved in ASIC investigations as far back as 2004.  We note that, when raising hundreds of millions of dollars from investors from late 2004 to mid 2007, Mr Lewski chose not to disclose his involvement in these matters.  We believe that this is a clear case of misleading and deceptive conduct and we believe that Madgwicks Lawyers, who were Mr Lewski's personal lawyers and also the lawyers for the Trust, also had a duty to ensure that the Product Disclosure Statements contained all of the relevant disclosures.  Many unitholders have commented that they would not have invested in the Trust had they known that entities associated with Mr Lewski were being investigated by ASIC at that time.  Many unitholders have also commented that they would not have invested had they known that Madgwicks were attempting to perform the dual (and we would suggest heavily conflicted) roles of lawyers for the Trust and lawyers for Mr Lewski.

SMH 18 Sept 2012 SMH 18 Sept 2012 jpg AFR 19 Sept 2012 jpg AFR-Article-19-September-20