Credit union which lost €1.25m sues stockbroker
A CREDIT union has brought a legal action against a major stockbroker after losing €1.25m as a result of allegedly negligent advice on investments.
Greystones & District Credit Union in Wicklow has brought proceedings against Bloxham stockbrokers, already being sued by the Solicitors Mutual Defence Fund and two solicitors for more than €10m.
The credit union's case, brought against nine individuals and FBD Securities Ltd, said to be practising as Bloxham, was admitted to the Commercial Court yesterday.
It was adjourned to next May.
The credit union is alleging negligence, breach of contract and breach of warranty. In particular, it relates to the investment of sums of €1m and €250,000 in Saturns Investments Europe plc investment bonds, referred to as the Dresden bond and the HSBC bond.
In an affidavit, Brian Douglas, manager of the credit union, said, having invested sums on the advice of Bloxham, the credit union discovered the investments were not authorised by the Trustee (Authorised Investments) Orders of 1998.
He said they would not have invested the €1.25m sum had it been advised of their complex and high risk nature.