Maurice Blackburn

Class action against Commonwealth Financial Planning over bad investment advice

Maurice Blackburn Lawyers have today launched a class action against Commonwealth Financial Planning Ltd in the Federal Court claiming compensation for all those investors who lost millions by relying on the recommendations of CFPL's financial planner, Mr Don Nguyen.

Maurice Blackburn began its investigations into Commonwealth Financial Planning in early 2010 when it launched legal proceedings on behalf of four investors who lost a combined $3.7 million because, it is alleged, they relied on Mr Nguyen's defective investment advice.  Mr Nguyen was a financial planner employed by CFPL until July 2009.  

Maurice Blackburn Managing Principal Ben Slade believes the problem is widespread.   

"Those who have suffered such losses need experts working for them to help them to get the compensation they deserve.      

Since March last year, several former clients of CFPL have asked for our help. We understand that there are many other people out there who have lost a great deal of money and who CFPL may short change.  These people need someone on their side and this class action will give them that."

Maurice Blackburn alleges that CFPL breached various provisions of the Corporations Act, engaged in misleading or deceptive conduct and was negligent. There are many stark similarities among Mr Nguyen's former clients. They are mainly retirees who chose CFPL because of its reputation.  Many were asked to sign blank pieces of paper and incorrectly categorised as aggressive or growth investors and their money was invested in high risk portfolios. They suffered substantial losses or, in some cases, their entire life savings.  

Maurice Blackburn has settled some matters on behalf of aggrieved investors but a number are still outstanding.  

Elizabeth Saunders, a retired public servant is the lead applicant in the class action case.  When she retired in 2007 she sought advice from Mr Nguyen on the best way to secure an income stream for her savings.

It is alleged that Mr Nguyen wrongly categorized Ms Saunders as a growth investor and recommended that she invest her savings and her superannuation in investment portfolios that were inappropriate for her and carried excessive risk.    

Ms Saunders said: "When I asked Mr Nguyen for advice I had just retired and needed my money to support myself for the rest of my life.  What I got was high risk without my knowledge. I worked hard and saved all my life and now I'm left in financial hardship because of this."

The class action is brought on behalf of investors who, between 8 February 2005 and 28 February 2010, received investment advice from Mr Nguyen of CFPL and who suffered losses by relying on this advice. 

If you would like more information about this class action call 1800 810 812 or click here