Bank of Queensland will defend proceedings against them in the Federal Court. Photo: Glenn Hunt

Bank of Queensland is facing a second class action from customers of disgraced financial planner Bradley Sherwin over claims it failed to stop a multimillion dollar “Ponzi”-like investment scheme from taking place. 

Mr Sherwin is currently facing various fraud charges over his alleged role as director of collapsed Wickham Securities and principal of Sherwin Financial Planners. The two companies collapsed in 2012 owing investors millions of dollars. 

Legal firm Quinn Emanuel Urquhart and Sullivan alleges the bank, through its fund manager DDH Graham, failed to stop fraudulent transactions from taking place. It is mounting the class action on behalf of one Sherwin’s clients, Petersen Superannuation Fund.

The accounts, known as Money Market Deposit Accounts, were spruiked to self-managed super fund retirees by Mr Sherwin’s various outfits. 

Wickham Securities collapsed in December 2012 owing more than $27 million to more than 300 debenture holders. Sherwin Financial Planners was placed into administration shortly after. 

In July last year Mr Sherwin was charged with 33 counts of dishonestly causing detriment totalling nearly $10 million following an investigation by the corporate regulator. 

He was also charged with one count of dishonestly breaching his duties as a director of Wickham Securities. 

In a statement of claim filed in the Federal Court of New South Wales on Friday, lawyers allege Bank of Queensland “knowingly assisted” Sherwin Financial Planners in breaching its fiduciary duties by failing to question dodgy transactions. 

They also allege DDH “willfully shut its eyes” to dishonest and fraudulent behaviour at the company by allegedly overseeing the use of funds deposited into accounts to create the false appearance that it was paying returns to investors. 

“DDH knew, or ought reasonably to have known, that there was a serious or real possibility that fraud was being committed on the [accounts] in question,” the statement of claim says.

In the case of such transfers, Sherwin Financial Planners would allegedly “instruct DDH to include notations to the transfers to appear on the recipient’s bank statements which disguised the true origin and nature of the payments”. 

Bank of Queensland and DDH said on Monday they would defend the proceedings. Spokespersons for both companies would not comment further on the case. 

In October last year, Shine Lawyers announced it had also begun a class action against the bank on behalf of other Sherwin customers who were seeking compensation. 

The latest class action is open to anyone who held a Bank of Queensland Money Market Deposit Account. 

Mr Sherwin was banned from providing financial services for two years and seven months in September 2013 as a result of going bankrupt. A committal hearing for his case has been set for 20 June in the Brisbane Magistrates Court.