BFCSA Blog

  Mr James Shipton, Chair, Australian Securities and Investments Commission     Dear Mr. Shipton, Sterling New Life I am writing to supplement the submissions appealing to ASIC for compensatory redress for being defrauded in the now collapsed Sterling New Life (SNL). The pertinent issues in this appeal are based on a raft of misrepresentations by parent company Sterling First (https://sterlingfirst.com.au/) concerning the legal and financial status of SNL and its Tenancy Contract. They also rely on ASIC acting in its consumer protection role. The complainants were given to believe that the funds they contributed were secured. In good faith they paid in advance the rent for 40 years of tenancy in exchange for the company’s Lease for Life. But the Sterling Group provided no warranty on the product they were selling to these senior couples in the retirement phase of life. Furthermore, purchasers were not informed that SNL was one...

26th June 2019   ASIC CHAIRMAN     Mr James SHIPTON Australian Securities & Investments Commission, 120 Collins St, Melbourne VIC 3000   Dear Mr Shipton   Re: The collapse of the Sterling Life Group.   My wife and I are one of the one hundred people that have lost their life savings and the security we had having a roof over our heads for the rest of our lives. Why Mr Shipton? Because you and your staff at ASIC could not be bothered to send out a warning about Sterling New Life Group.   We joined the Sterling Life Group on the 26th July 2017 this is months and probably years after you knew there were problems with this group. If you as Chairman had issued warnings about this group we and others would not be in this situation now. This is gross neglect of your duties by not stopping this group....

Do not worry about what “others are doing” TENANT usually makes first contact   1: Contact your Landlord by phone – have a conversation 2. Tell him a court case will give guidance to both sides in 10 days 3. Send him the BFCSA Letter campaign will demand compensation for all 4. Landlord can register with me and claim Feb – May rent money stolen by RMA 5. You both do not want RMA involved – sever all ties. 6. Neither should sign any contracts with managers right now NONE 7.  It’s a crime scene. 8.  Tenant has 40 years contract 9.  Tenant should make arrangements to pay what they can afford 10. Rents have been exaggerated but come to a happy decision that suits best 11.  BUT must be DOABLE by the tenant – ie affordable. 12.  Do not involve lawyers or managers. 13.  Ask Landlord for their bank account...

28th June 2019 Mr James Shipton Chairman of Australian Securities & Investments Commission   Ref: The Collapse of the STIRLING LIFE GROUP – A failure of the Australian Securities and Investment Commission. Dear Mr Shipton. I am writing to you regarding the collapse of the Stirling Life Group. Do you realise the devastation this has caused to my family through the total lack of action displayed by your department in this instance? I, myself, signed into the Stirling Life Group after an abusive and controlling marriage break down thinking I was now making a secure decision not just for me but for my 3 children. You see I am not a retiree but a 43 year old single mother of 3 teenage children. Mr Shipton due to your negligence in this situation you have left the future accommodation and security of my family in dire straits. I gave my savings to...

Dear Mr Shipton                                   I am writing to you to complain that ASIC has failed to stop these people from trading I have lost all my  life's savings and finally ruined this money was paid for a 40 year lease cannot believe ASIC has allowed this to happen you where supposed to protect people like us but failed miserably  you do not no the major stress this has caused  I  and wish this on my worst enemy, If I was in charge of your department there would be major job losses.  As an ex Goldman Sachs man, why are ex bankers becoming Regulator Chiefs? Its like a fox in charge of the chooks.  You need to resign immediately, but make sure this compensation is paid....

30 June 2019 Mr James Shipton Chairman - Australian Securities and Investment Commission 120 Collins Street Melbourne Victoria 3000   Dear Mr Shipton   May I refer you back to October 2017, when you commenced in your role. An online Herald Sun report “Your Money, Our Vigil”…..which I assume was your accountability. You should by now be well aware of the Sterling First Group collapse, impacting hundreds of retirees in Perth and other states. After all, your investigators visited and interviewed myself and my husband, and took documents in mid 2018.   53 years ago, my husband and I arrived in Perth from Scotland as “10 pound Poms”. It was seen as the land of opportunity if you worked hard and paid your way. My husband was a qualified tradesperson and I worked part time. We worked hard and saved in those early days to build our own home in 1970....

Dear Sir,, I am one of the victims of your failure to stop the criminals under the umbrella of Sterling first.ROBBING us of income and savings,so now we have the life of homeless people.This  is a crime against humanity that you and your organisation committed,knowing that the companies registered with A.S.I.C, had a history of criminal activities for many years. Let me tell you James Shipton in the country where I was born they used to hang criminals,but sadly we dont do that in this country, so what authorities will have to back you when even the hardened criminals have higher moral standards than you. My wife  is now on medication to treat her depression that is having a dangerous effect on her life,and if something happens to her health,I consider it my duty to see that you and the rest of the negligent criminals employed under you, finish looked up...

Sterling New Life Mr Shipton   We sold our house back in 2016 and invested in a well- advertised scheme where we moved into a leased property with promise of the interest from our investment  paying our rent .It failed and we now have lost all our investment and we are obliged to pay our rent out of our pension which leaves us little to live on.  My complaint to you is that the company we invested in was Sterling New life and we understand that as far back as 2014 WA Consumer Affairs was not happy with the structure and advised ASIC of the probable problems. It appears that ASIC did nothing to 1. Advise the people of a probable situation 2. Investigate the scheme 3. Bring the directors to task by asking for their business plan.  In our opinion ASIC has failed in their charter to investigate and to...

Chairman of ASIC - JAMES SHIPTON Dear Mr Shipton, I am a 70 yr old pensioner, who invested the last of my superannuation ($4000) in shares of Sterling Group. 18 months ago, I had to return to part time work to make ends meet. March of this year I was in financial difficulties and contacted Brian Ruzich at Stirling Income Trust told him of my difficulties and said I needed to take my investment out. Mr Ruzich told me I would be better off to wait as the company was going on the share market in May. Regrettably I followed his advice and in May was informed the company had collapsed. I now have trouble sleeping at night due to financial worries, this is affecting my efficiency at work which then causes more concern and worry. I feel I am in a vicious circle of hopelessness. I believe ASIC knew of...

Att: Mr James Shipton (Chairman)  Subject: The Sterling Group collapse   Dear Sir   I am writing to you to let it be known that I, as a concerned citizen, expect ASIC to take all necessary steps to bring to justice the perpetrators of the Sterling Group scheme.   The scheme was clearly designed to fleece stake holders of their collective contributions.  This was carried out in broad daylight for all to see.   Not only should the perpetrators be brought to account there needs to be some Commission or Government funds available to compensate the stake holders for their losses.   It is hard to imagine that on the beginning of your retirement with no real earning capacity left to recover from such a financial hit you find yourself in this predicament.   ASIC has not got a good reputation or track record in prosecuting corporate felons maybe this could...

30th June 2019   Mr James Shipton Chairman of Australian Securities and Investment Commission 120 Collins Street Melbourne Victoria 3000   Dear Sir,   Re:      Sterling First   I have a close friend and past work colleague embroiled and victim of the Sterling First collapse. I have closely followed the stories on the radio and watched news and current affairs programs on television to understand the plight of those affected by this situation.   The people affected are typical Australian battlers who have worked hard and were moving to the retired phase of their life seeking a comfortable retirement, much like myself, as I have recently turn 65. The failure of Stirling First has caused significant hardship to hundreds of families and has I believe cause permanent phycological reservation with many questioning how this could be allowed to happen in Australia, the country that they helped make GREAT. These families/people were...

Mr James SHIPTON Chairman of Australian Securities & Investments Commission,  Ref: The Collapse of the STERLING LIFE GROUP – A Failure of the Australian Securities and Investment Commission.    DEAR MR SHIPTON   I write to you in disgust at the lack of action taken by ASIC with regards to the collapse of the Sterling Life Group. On the 16th April 2018 my wife and I invested our life savings into a 40-year lease and moved into a home in Ashby, Western Australia for what we thought was the start to a worry-free retirement.  This was not to be.  I was never informed of the collapse of the Sterling Life Group and only found out via a neighbour and have never received any correspondence regarding the collapse apart from 1 letter from the receivers.  I still do not know where I am going to live.  Let me ask you a question...

29 June 2019  Mr James Shipton Chairman of Australian Securities & Investments Commission  Dear Mr Shipton   Re: The Collapse of the STERLING LIFE GROUP – A Failure of the Australian Securities and Investment Commission My sister, my sister, invested with the Sterling Group in June / early July 2018. This was before the Group became insolvent but well after the time that ASIC first became aware that Sterling was likely to fail. Because of blatant disregard by ASIC of this knowledge, inaction by them has led to my sister losing a total of $285,000. This is the second time that ASIC has failed in regard to my sister. The first time was in relation to bank lending practices and now she is faced with this travesty. The first failure by ASIC resulted in enormous stress to my sister and the beginning of anxiety attacks. It was at this time, when she...

25th June 2019     Mr James Shipton Chairman of Australian Securities & Investment Commission "ENDURING ON A DAY TO DAY BASIS"  Ref: The Collapse of the Stirling Life Group     Dear Mr Shipton  We are writing to in Great Disappoinment of the Collapse of Stirling Life Group and the LACK of Communication regarding the investment.    In January 2017, my wife and I Signed up to join the Income Stirling Trust for a 40 Year Lease, the start of our exciting retirement.  But this was not to be.  We invested All of the money we had from the sale of our home and All our Life Savings.    We were NEVER informed of the Collapse of the Stirling Life Group and only found out from neighbours in general conversation.   ASIC has failed to consider the DEVASTATING effects and financial ruin this has caused to our family.  My wife...

Dear Mr Shipton,     The Collapse of the STERLING LIFE GROUP   I write in the capacity as a 30-year commercial banker and now a self-employed finance broker. I also write with a direct connection with my parents in law directly impacted by investing their hard-earnt life savings into securing a long-term rental arrangement with Sterling Life for a roof over their heads – their home!   I understand there is an action where retirees like my parents in law are looking for a reasonable outcome in the form of compensation from ASIC in a specified timeframe.   From my understanding and research ASIC clearly knew about the related issues and the likelihood of failure of The Sterling Group as early as 2015 or 2016. The (Ponzi like) structures we recognised early in the piece as it should have been recognised as should the dubious background of related individuals (like...

  Mr James Shipton Chairman of Australian Securities & Investments Commission,   Dear Mr Shipton,   Re:  The Collapse of the STERLING NEW LIFE GROUP                                                                                                                                  We are writing to you today to voice our dismay and disapproval of the diabolical way in which ASIC have failed to protect us from the collapse of the above.   ASIC were made aware in 2015 of the problems with this scheme and did nothing to protect vulnerable and older consumers by issuing early vital warnings of the catastrophic financial loss and failing to stop it.    How was this allowed to happen.?  You have to be held responsible for this collapse as you were aware of the problems but you did nothing to warn people not to enter into this arrangement.  If you had we would not be in the situation we are today.   We worked hard to make sure that we...

Dear Mr Chairman   JAMES SHIPTON   The collapse of the STERLING LIFE GROUP-a failure of the Australian Securities and Investment Commission. We are victims of the collapse of the STIRLING LIFE GROUP. Since the collapse of the Stirling Life Group we find ourselves in a dire situation with our entire life savings plundered, and now face being homeless in the near future. It is too frightening to contemplate!  My wife has a medical condition known as Systemic Lupus Erythematosus (SLE). It requires that she undergo regular visits to a Rheumatologist, Cardiologist, Neurologist and Ophthalmologist, and the need for continuous use of medications to balance her condition. Since the collapse of Stirling Life she has endured frequent ‘flare-up’ of her condition, and blood pressure elevation due to stress and worry. Now with our life savings gone we are very worried that we are not able to find the money to assist her...

  Dear Mr Shipton,   As one of the one hundred plus families affected by the recent Sterling collapse, I am writing to let you know of my disgust and loss of faith in my country and the way it treats its most vulnerable citizens.   If you Google ASIC and check out Wikipedia it says;   “ASIC’s role is to enforce and regulate company and financial services laws to protect Australian consumers, investors and creditors”   Can you therefore Mr Shipton tell me just how you have done that? Because I see nothing has changed during your watch and good honest vulnerable Australians are left struggling in the meantime.   If ASIC had concerns about the Sterling group many months ago then why was nothing put out officially to alarm potential customers?   I realise that ASIC and yourself will most likely crawl under a rock until the heat dies...

Chairman of Australian Securities & Investments Commission 120 Collins Street MELBOURNE   VICTORIA   3000   Dear Mr Shipton   Re.: Collapse of the Sterling Life Group   My mother came to this country in 1975, learned the language and in 6 months was working in her profession. She worked hard all of her life to bring us up and provide the best opportunities this country has to offer. She made sure we loved and respected the Australian way of life, that we were honest, hard-working, law abiding individuals. She has sacrificed much throughout her life here, and most certainly deserves much better than to be robbed of her hard earned money for retirement by unscrupulous individuals, as well as the house which was supposed to be her home until her death.     This, Sir, is NOT the Australian way! It is shameful that your staff, who were aware of the company/ies...

Dear Mrs James Shipton   Re:      Sterling First   I am not a victim of the Sterling first collapse and have no relatives or close friends affected by this.  However, I have listened to the stories on the radio and watched news and current affairs programs on television to understand the plight of those affected by this situation.   The failure of this company has caused and will continue to cause, significant hardship to hundreds of families.  These people were not in this scheme to make a quick buck – they were simply trying to secure a comfortable residence to live in long term.  The people who “invested” in this scheme were not high income earners living a lavish lifestyle – they were typical Australian battlers.    In hindsight, it is quite easy for us all to see that this scheme was doomed to fail sooner or later.  However, these people...