Investors who lost money in the collapse of Sonray Capital Markets (Sonray) have until August 31 to register their interest in potential legal action being investigated by national law firm Slater and Gordon.
Sonray, which provided financial services, went into administration on June 22 this year with an estimated shortfall of $46 million. A reported $30 million in funds and shares was frozen at the time.
Slater and Gordon litigation lawyer David Andrews, who conducted the Opes Prime class action, said in the past month the firm has been contacted by more than 100 former Sonray clients who had been affected by the company’s tragic collapse.
He said Slater and Gordon would be offering its services to former Sonray clients on a ‘no win, no fee’ basis.
“We have undertaken significant investigations into Sonray and the deeper we dig, the worse it looks,” Mr Andrews said.
“The Sonray operation was a debacle. Sonray was an accident waiting to happen.”
He said Slater and Gordon’s investigations were focussed on Sonray’s directors, advisors and service providers as well as its insurers, auditors, investment banks and others who recommended Sonray’s products or services.
“Sonray’s business arrangements and its investment services were extremely complex and our investigations may give rise to a variety of different legal claims against a number of parties.
"It appears there were failures at every level, but it’s clear to us the rot started at the top. Poor accounting and poor record keeping are only part of it. What clients thought was happening with their funds did not reflect the reality.”
Mr Andrews said he has had discussions with representatives of the investor group, which has been set up post Sonray’s collapse, and expects to be working with them in any legal action that eventuates.