Westpac to make payments to seven more investors in failed Capital Growth International Club scheme

Westpac Banking Corporation has offered to make payments to another seven investors in a failed scheme operated by Capital Growth International Club Pty Ltd, now in liquidation, according to the Australian Securities and Investments Commission (ASIC).

This is as a result of the investors’ contact with former Westpac home finance manager David St Pierre who, in March, was banned permanently from credit activities and financial services.

From Mount Nathan, Queensland, St Pierre’s ban came after an ASIC investigation that found he had submitted loan applications to Westpac for approval knowing they contained false information supported by false documentation.

He had also failed to perform an authority accurately identifying the payee of the cheque, resulting in a customer’s cheque going into a personal account of a non-office holder of Capital Growth International Club. He also encouraged and enabled customers to borrow funds from Westpac and earned cash bonuses from doing so.

This was while he knew that they were elderly, a pensioner, a carer or suffering from the disability and, if the scheme failed, they would be unable to repay.

St Pierre operated as a home finance manager for Westpac between September 2000 and April 2011. He was also involved in providing loans to All About Property Developments Pty Ltd, now in liquidation. It was the real estate arm of the Capital Growth International Club.

Of the 18 customers with home loan related applications, some were elderly or vulnerable and yet encouraged to borrow against their houses. Some had not debt on their homes prior to this. They had been promised 15% to 25% returns per annum.

Westpac has already compensated some customers who borrowed through St Pierre.

The seven new investors did not borrow funds from Westpac, but claim contact with St Pierre before making an investment into Capital Growth International Club.