The Bank of Queensland is at the centre of a potential class action after customers allegedly lost hundreds of thousands of dollars.
Shine Lawyers has accused the bank of breaching its obligations to customers by failing to prevent transactions from their Money Market Deposit Accounts.
The firm says customers allegedly lost hundreds of thousands of dollars after transactions were performed on those accounts under the instruction of Brisbane-based financial planner Brad Sherwin, his employees or his related entities.
“We understand that almost all clients of Brad Sherwin and his related entities had a Money Market Deposit Account opened in their name or the name of their self-managed superannuation fund,” the release said.
“Many of these clients appear to have been unaware that this had taken place.”
Mr Sherwin was the principal of the Sherwin Financial Planners which went into administration in 2013.
He has been charged with 33 fraud offences and faced a Brisbane court earlier this year accused of illegally using almost $10 million in clients'[ bank accounts between July 2009 and Christmas Eve 2012.
The Bank of Queensland says it is prepared to defend itself but so far it has not received any formal notification of a potential class action.
“The Bank will defend any proceeding that may be commenced,” a statement from the bank said.
The action may also be brought against the accounts administrator DDH Graham Limited.
“Our investigations have revealed that, by allowing certain transactions to take place, the Bank of Queensland and DDH Graham Limited may have committed breaches of their obligations under the Corporations Act as well as to their customers,” Shine Lawyers said.