Fincorp Investor Class Action 
against Sandhurst Trustees Ltd
The collapse of the Fincorp group of companies in March 2007 placed at risk over $200million invested by around 8000 ‘mum and dad’ investors. After Westpoint, it was the second major Australian fixed-interest investment scheme to collapse and has since been followed by high profile companies including Bridgecorp, Australian Capital Reserve, Elderslie Finance, and Asset Loans.
Background
Following the collapse of Fincorp, Slater & Gordon was instructed by a number of investors to investigate a potential class action against Sandhurst Trustees Limited (Sandhurst). Under the Corporations Act 2001 (Cth), Fincorp Investments Limited was required to appoint a trustee to safeguard the interests of investors. Sandhurst was appointed to this role in March 2004 pursuant to two Trust Deeds.
The Act required Sandhurst to “exercise reasonable diligence” to ascertain whether the property of Fincorp Investments Limited would be sufficient to repay Fincorp noteholders when those investments became due. It has been alleged that, if Sandhurst’s breach of duty can be established, persons that invested in Fincorp subsequent to that relevant date will be entitled to compensation for loss of capital and interest. The proceeding requires the Court to determine whether a reasonable and prudent corporate trustee in the position of Sandhurst would have prevented further fundraising from about 7 December 2004.
Court Proceedings
On 24 August 2009, a representative proceeding was commenced on behalf of Mr and Mrs Mark and Rhonda Harrison in the Federal Court of Australia Melbourne District Registry. The claim has been brought on behalf of all persons that:
- invested in secured and/or unsecured notes issued by Fincorp Investments Limited after 7 December 2004;
- held those notes as at 23 March 2007; and
- suffered loss or damage as a result of Sandhurst’s breach of duty.
Further Information
Please refer to our answers to Frequently Asked Questions 
If you are a Fincorp investor and wish to find receive an information pack about this class action, please contact Slater & Gordon's New Client Services department on 1800 555 777 or by e-mail to fincorp@slatergordon.com.au or fill out our online enquiry form.