Legal fees chew up $5 million in Prime Trust directors' prosecution

The mum and dad investors in Prime Trust will battle taking further legal action against the directors of Prime Trust as the $5 million legal fund provided by compulsory insurance was exhausted last May. The directors, founder Bill Lewski (pictured), Howard government Health Minister Michael Wooldridge and Victorian Liberal Peter Clarke defended themselves against ASIC who claimed in the Federal Court that the directors had a conflict of interest and gave “no proper attention” to their responsibilities when paying Lewski a $33 million payment for successfully listing Prime Trust. The entity collapsed two years later in 2010 owing $550 million to investors.
In December the Federal Court found against the directors; they can be disqualified as company directors and be fined up to $200,000 each. The investors however need funding for their legal case if they are to pursue the directors further – which they no longer have.