$40M will be returned to the mums and dads who invested in the Gold Coast based LM Investment Management Fund which lost $400M when it collapsed two years ago.
The proceeds come form five QLD retirement villages that LM funded. Their sale achieved robust values, negotiated by Colliers, compared to expectations.
LM founder Peter Drake, according to The Australian, will go down as the third largest bankrupt in Australian history. All up 12,000 investors across the world lost $750M, most from Canada.
Tribunal rules operates cannot charge for preparing a loan contract
Emil Ford Lawyers report they have been successful in assisting a client to recover overpaid entry fees charged by a retirement village.
The NSW Retirement Villages Act says that a retirement village contract must be in a standard form. It also imposes a cap of $200 on the amount that a retirement village operator can ask the incoming resident to contribute to the operators costs of preparation of the retirement village contract.
Emil Ford claims many villages have been dividing contracts into up to 4 separate contracts and charging for each contract and charging far more than $200.
They took this case to the NSW Civil and Administrative Tribunal. It held that the retirement village operator could not pass on to the resident the costs of preparing a Loan Contract and ordered that the overpaid fees be refunded to the resident.