Stellar Securities evicted amid tax probe into investor
Staff at Stellar Securities - which was a major sponsor of Mr Sage's A-League soccer club Perth Glory - turned up on Monday to find the doors of their plush St Georges Terrace office locked by the landlord, who claims rent has gone unpaid for several months.
Stellar Securities operates from 108 St Georges Terrace in the Perth CBD, the same office once owned by the fallen entrepreneur Alan Bond and home to one of his best-known purchases, Vincent Van Gogh's Irises painting.
A notice on Stellar Securities' door said on Monday: "The Landlord has re-taken possession of these premises." The sign directed inquiries and deliveries to Stellar managing director and founder Nathan Barbarich.
Mr Barbarich, formerly of ABN Amro, and director Kent Hunter, also a director of Cazaly Resources, have not responded to numerous calls.
Stellar Securities was one of three Perth stockbroking firms believed to have been raided by the corporate regulator late last year in relation to an investigation into Mr Sage and Cape Lambert Resources.
Mr Sage yesterday would not comment on the investigation or raids that had occurred in and around Perth just before Christmas. He did confirm that Stellar Securities was no longer a major sponsor of the football club he owns. "We have an announcement of a new major sponsor early next week," he said.
The eviction notice at Stellar Securities follows a spate of employee departures from the 18-month-old business and comes amid tough times in the industry.
One-time director Terry Gardiner said he left Stellar Securities 2½ weeks ago due a "difference of opinion" on the company's direction, but remained a shareholder.
Mr Gardiner was previously a director of the London-listed Red Emperor Resources with Mr Sage. Mr Hunter was also a director of Cauldron Energy with Mr Sage.
Declining to say whether Stellar Securities was profitable on his departure, Mr Gardiner nonetheless said he wasn't aware of any recent troubles.
"Like every other broking firm in Australia, it's doing it tough," he said. "Volumes right across Australia in the broking sector have dried up, and WA is more exposed to the junior sector than the rest of Australia."
Stellar is estimated to have fewer than 20 employees.
According to its website, Stellar offers securities trading, corporate advisory and capital raisings, research, funds management, private capital investment, mergers and acquisitions.
Stellar Securities' four Melbourne employees are believed to have severed ties with the company last week.
It is believed that a number of larger stockbroking firms are keen to take over Stellar's former Melbourne output.
Frequently Asked Questions about this Article…
Staff at small Perth broker Stellar Securities arrived to find their doors locked after the landlord re‑took possession of the premises at 108 St Georges Terrace, saying rent had gone unpaid for several months.
The eviction comes amid a wider situation that includes a tax investigation into high‑profile Perth investor Tony Sage; Stellar was one of three Perth broking firms believed to have been raided late last year in relation to inquiries involving Mr Sage and Cape Lambert Resources, although Mr Sage would not comment.
A notice on Stellar Securities' door directed inquiries and deliveries to managing director and founder Nathan Barbarich, although the article reports Barbarich and director Kent Hunter had not responded to numerous calls.
Clients could face disruption to trading or corporate services while the firm deals with eviction and staff departures; the article notes employees have left and Melbourne staff severed ties, and larger broking firms are reportedly interested in taking over Stellar's former Melbourne output.
According to its website, Stellar Securities offered securities trading, corporate advisory and capital raisings, research, funds management, private capital investment, and mergers and acquisitions services.
Key names in the article include Stellar managing director Nathan Barbarich (formerly of ABN Amro), director Kent Hunter, mining investor Tony Sage, Cape Lambert Resources, Perth Glory (the football club), former director Terry Gardiner, and companies linked to the individuals such as Cazaly Resources, Red Emperor Resources and Cauldron Energy.
Yes — the article says Stellar experienced a spate of employee departures since its 18‑month existence, one director Terry Gardiner left about two-and-a-half weeks earlier, the firm is estimated to have fewer than 20 employees, and four Melbourne staff are believed to have severed ties last week.
The article quotes a former director saying broking firms across Australia are 'doing it tough' with volumes drying up, and that Western Australia is more exposed to the junior sector, which has added pressure on small Perth brokers like Stellar.
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