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January 13, 2004

Eileen, 88 and deaf, is Tweed's latest target

From: Sydney Morning Herald, Australia - Jan 13, 2004

By David Elias
January 14, 2004

After a disastrous year in the courts, money-hungry share scammer David Tweed has again turned to the law to help him.

His first victim of 2004 is Eileen Clare, 88, of Pymble, who is nearly blind and very deaf, who received 974 Insurance Australia Group shares in the NRMA demutualisation.

Mr Tweed's National Exchange first sought to claim $1461 damages from Mrs Clare last April for loss of windfall profit after she refused to send in her shareholder registration number.

National Exchange dropped its actions against hundreds of small shareholders after losing a similar case in the Melbourne Magistrates Court and then losing the appeal in the Supreme Court.

National Exchange has since lodged a further appeal, which has yet to be heard, with the Appeal Court.

Meanwhile, the Griffin Law Firm representing the West Melbourne dealer has issued new proceedings against Mrs Clare.

This time Mr Tweed is claiming $2533 on the basis that since his previous intimidatory letters, IAG's share price has continued to rise and in September reached $4.10 and above.

Having offered Mrs Clare $1.50 a share, Mr Tweed originally claimed $1.50 for lost profit on each share. But as punishment for Mrs Clare's failing to buckle under threats of police action against her chronically ill husband, Mr Tweed's claim has risen to $2.60.

Mrs Clare wrote to Mr Tweed last March explaining that her husband, Lawrence Clare, had without her knowledge signed and sent in the National Exchange pro forma acceptance expecting to receive more information on the $1.50 low-ball offer.

"He did not send you my SRN number as he was not in a position to complete and enter into a contract with you," Mrs Clare wrote. "I am nearly blind and very deaf and was not aware my husband had written to you for information."

Mr Tweed replied that he had received a legally binding transfer and that if it was signed without her knowledge it was fraud and he would report this to the police fraud squad and seek damages from the person responsible.

Griffin Law Firm, based in Footscray, followed up with two letters of demand in May and September, and last week served Mrs Clare with court papers containing the $2533 claim and $455 costs.

Mrs Clare's solicitor, Adrian Muller, of Melbourne law firm Slater & Gordon, said said the action would be contested.

Copyright © 2004. The Sydney Morning Herald.