Steve Navra at Brisbane Airport.

MUM-and-dad investors entrusted Steve Navra’s companies with $400 million, believing he had a computer program to beat the stockmarket. Both he and the liquidator of his companies say all the money is gone. Forever.

But the investors — led by professional advocate Susie Bennell, the ex-manager of champion boxer Kostya Tszyu — believe $150 million remains and that they are going to find it.

Ms Bennell and more than 100 investors from across the country are now waging war against banks, lawyers, insurers and Mr Navra, of Melbourne.

Many invested via South Africa-born Mr Navra due to the success of his “NavTrade system” — an algorithm he wrote that delivered annual returns of 15-18 per cent in the early 2000s on trades in blue-chip Australian shares.

In 2008 and 2009 Mr Navra was earning $2.5 million a year — much of it from funds management fees — as well as travelling for two to three months a year and sitting on a half-stake in the Sydney-based Navra Group worth up to $30 million.

But his businesses soon began to fall apart, as did his investors’ financial futures.

As the GFC bit, the value of their shareholdings plunged, so many pulled what was left of their money. The Navra Group’s income in 2009 was half that in 2008 and, in 2011, it and Navra Financial Services went into liquidation. In 2012 the liquidator said the businesses failed because they were “unable to secure insurance ... as a result of claims for inappropriate advice given to clients”.

Susie Bennell, Kostya Tszyu's former manager, is leading the charge for compensation against financial adviser Steve Navra. Picture: Dylan RobinsonSource:News Corp Australia

Encouraged by Ms Bennell, the Australian Securities and Investments Commission has joined a Federal Court stoush over whether Navra clients are getting a fair share of the insurance money.

Shares were not the only asset class Mr Navra recommended. He tipped followers into Great Southern grape schemes, which went sour. Ms Bennell appeared before the Senate Economics References Committee’s “Bitter Harvest” investigation of failed agribusiness projects, flaying Mr Navra. The Committee’s report, published in March, references him 24 times, saying clients “may have received inappropriate advice”.

One client, supported by Ms Bennell, is battling the law firm recommended by Mr Navra after Great Southern collapsed in 2009. The investor, who asked not to be named, borrowed $339,000 to invest in Great Southern. She claims in court documents that she stopped repaying the loan after Mr Navra said it would be better to use the money to pay the law firm to get the loan cancelled.

The law firm failed to get the loan set aside.

The investor, who now lives in London, is claiming $657,000 — the difference between what she would have owed if she had kept repaying the loans and what she now owes.

A bid to have her professional negligence action struck out was recently defeated.

The ultimate goal of the action is to be able to take on Bendigo and Adelaide Bank, which lent the money.

On Mr Navra’s advice, many investors also piled into “instalment warrants” in the GFC to avoid margin calls.

They had bought into Navra funds after not only borrowing against their homes but taking out margin loans. Documents filed by a Navra client in a class action against the maker of the warrants, the Royal Bank of Scotland, say the “complex financial products” were bought by about 300 clients to pay off margin loans after Mr Navra advised there was “no risk of margin calls”.

The Navra client bringing the action against RBS claims that on the advice of Navra Financial Services, she then “rolled over” her original warrants into new ones that were a “limited recourse margin loan”.

Calls were triggered in October 2008.

Darren and Elizabeth and Vos (with their dog Banjo) lost their home and now live in a caravan as a result of their losses. Picture: Adam TaylorSource:News Corp Australia

This client is not the same woman taking action over the Great Southern investments.

The investors and Ms Bennell are making political waves, too. Following a meeting with Bill Shorten, the Labor leader said he wanted the questionable financial advice they received to be examined by his proposed royal commission.

Financial Services Minister Kelly O’Dwyer has arranged meetings with the Financial Ombudsman Service and the Government’s External Dispute Resolution Review.

Ms Bennell wants a retrospective compensation fund.

As for the $150 million, Ms Bennell believes up to $40 million is believed may be tied up in Australian real estate and much of the rest has gone to Hong Kong.

Mr Navra declined to answer questions. However, it’s understood he considers the pursuit to be “ludicrous”.

At a creditors meeting in Sydney in September, the liquidator of his companies said there wasn’t even enough money to pay his costs.

Asked whether the investors have to shoulder some of the blame for the losses, Ms Bennell said they weren’t greedy, they just wanted to avoid “being an impost on the Commonwealth” in retirement. Mr Navra had “assured them their investments were rock-solid”.

That’s what Elisabeth and Darren Vos say they were told. The couple had substantial property holdings before buying into the Navra share funds. They now live in a caravan on Sydney’s outskirts.

“We can no longer spoil the grandchildren with special outings or afford those special family dinners out which we so loved,” Mrs Vos said.

“We have come to terms with what has happened but don’t want to see others go through what we have,” Mrs Vos said.

Ms Bennell said: “We will not stop fighting.”

EXPERIENCED TRADER LOST OUT

Russ Grosvenor was one of many investors burned by Steve Navra. Picture: Sarah MatraySource:News Corp Australia

RUSS Grosvenor’s story goes a long way to explaining why ordinary mums and dads decided to give so much money to Steve Navra companies.

Because Mr Grosvenor was no investment novice.

He was 52 when he retired from his work as a fulltime investor in 2000 and soon after put $500,000 into the newly formed business around the Navra stock-trading algorithm. It was most of his superannuation.

He also put $600,000 into Navra managed funds, some of which was from a margin loan.

He lost all but $60,000.

“I trusted him,” Mr Grosvenor, of Lilydale, said yesterday. “He had so much self-confidence. He’s a super salesman.

“I’m not crying poor. I’m not like some of those people up north, living in caravans. But this has affected my ability to enjoy retirement.”

Mr Grosvenor said Mr Navra told him the $1 shares in the algorithm company would go to $10.

And early on, things looked promising. Further shares were sold at $2.50. Mr Grosvenor bought some of those, too, as did one of his sons and three friends.

Meanwhile, the managed fund was paying out 15 per cent annually.

But in the end the Navra algorithm shares were worthless and the fund units were not much better.

“He’s left so much damage in his wake,” Mr Grosvenor said.

HOW IT HAPPENED

Pre-2002: Steve Navra helps investors buy real estate

About 2002: Mr Navra commercialises algorithm to trade shares

2002-03: Investors in the share-trading system told it will increase in value 10-fold

2003-2006: NavTrade system delivers managed fund investors income of about 15 per cent a year; funds under management reach $400m

2007: Many Navra managed fund investors also buy into Great Southern agribusiness schemes with margin loans

2008-09: As GFC hits, investors start pulling funds from Navra managed funds; Mr Navra earning $2.5m a year and travelling for two to three months annually; many investors buy “warrants” allegedly on advice they were “non-recourse” loans only for their to ultimately be some recourse

2009: Great Southern enters voluntary administration

2011: Navra businesses go into liquidation, unable to get insurance cover as investors make claims against the companies

2014-15: Susie Bennell begins assisting investors clients of the Navra companies; battles begin with insurers, lawyers and banks

2016: Clients of Navra companies scale up their search for what they believe is $150m of their funds still in existence; politicians taking increasing interest in their plight

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