THE Australian Securities & Investments Commission has secured a $13.5 million settlement for investors in the failed property scheme Westpoint Group.
It is the fourth settlement approved by the Federal Court under ASIC's Westpoint compensation proceedings.
The settlement with State Trustees in Melbourne allows about 525 eligible investors to submit a proof of claim to take part in the distribution of settlement funds.
The commission began proceedings against State Trustees in March 2008.
It alleged that, as the trustee of unsecured mezzanine notes issued by Westpoint's Market Street Mezzanine, which was placed in liquidation, State Trustees breached its duty to the note holders and failed to comply with its obligations under the Corporations Act.
''It is estimated that group members should ultimately recover approximately 71 cents for every dollar they invested in the mezzanine notes,'' the commission said in a statement yesterday.
Thousands of investors in Westpoint were left $388 million out of pocket when the group unravelled, beginning in late 2005.
The commission has begun 19 civil actions seeking to recover funds for investors in the majority of the Westpoint companies.
Under the compensation action, the commission in late 2008 reached a settlement with Masu Financial Management, in Sydney, on confidential terms.
This was followed late last year by a $5.9 million settlement with Sydney-based Professional Investment Services and a $2.55 million settlement with Melbourne-based Bongiorno Financial Advisers.
These settlements represented 62.5 per cent and about half of the capital invested, respectively.
AAP
