Investors who fell victim to Melissa Caddick’s fraudulent activities will recover part of their significant losses following a settlement in a class action lawsuit against her auditors. Caddick, who disappeared in November 2020, is believed to have defrauded over 60 investors out of approximately $23 million. So far, victims have received $7.25 million following the liquidation of her assets.
In September 2023, a class action was initiated by the 32 affected investors against five auditing firms responsible for reviewing Caddick’s finances from 2012 until 2020. The investors claimed that the auditors failed to detect the fraudulent documents that misled them, particularly regarding the non-existent shares claimed to be held in their self-managed superannuation funds.
Recently, Federal Court Justice Brigitte Markovic approved a $3.5 million settlement reached with the auditing firms, although they did not admit any wrongdoing. Michael Chapman, director at the class action law firm Mackay Chapman, expressed that the outcome was favourable, aiming to secure the highest possible compensation for the victims efficiently.
Of the $3.5 million settlement, a substantial portion will cover legal fees. Mackay Chapman will receive around $1 million, while litigation funder Therium will earn about $492,000 for its role in backing the lawsuit. Chapman mentioned that they agreed to a 70 per cent discount on fees to ensure more than half of the settlement would go back to the victims, highlighting their commitment to achieving justice.
The remaining funds, estimated at $1.73 million, are expected to be distributed to investors soon, with a total recovery projected at around 32 cents for every dollar lost.
Caddick deceived her investors by using her company, Maliver, to misappropriate their funds for personal use rather than genuine investments. Despite a coroner’s ruling in May 2023 that declared Caddick deceased, the cause of death could not be determined due to the condition of her remains. Her right foot, discovered in early 2021, was the only confirmed part of her body, following her unexplained disappearance shortly after a raid by ASIC agents targeting her investment scheme.
Caddick’s husband, Anthony Koletti, was the last known individual to see her before she vanished and remains a person of interest regarding the circumstances surrounding her disappearance, as he reportedly withheld information from authorities.