Storm Financial founders' Townsville property passed in at auction with a half-price hit in the making

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Storm Financial founders Emmanuel and Julie Cassimatis are prepared to sell their Townsville abode for almost half their initial expectations.

It was passed in at weekend auction at $1.35 million, with Ferry Property auctioneer Garry Byrne having a $2 million reserve.

The eight-bedroom house with views over Townsville towards Magnetic Island was initially listed for $3.85 million in 2006.

The land was bought for $280,000 in 1997 and built 11 years ago.

It’s been empty for about 18 months, having been home to the couple until they left Townsville following Storm's collapse.

About 50 people attended the auction with four registered bidders, according to the Townville Bulletin.

The Melton Terrace house attracted just three bids – $1.2 million from a phone bidder, a $1.3 million vendor bid and the $1.35 million bid by a local buyer also via telephone.

The couple’s financial advisory company, Storm Financial Services, collapsed in 2008, unable to pay its debts, leaving hundreds of clients out of pocket.

ASIC has commenced civil penalty proceedings against Emmanuel and Julie Cassimatis as directors of Storm in relation to alleged contraventions of their duties as directors.

It is alleged they caused and permitted Storm to be exposed to legal liability arising from the implementation of a financial services business model that involved providing commoditised financial advice to investors that failed to take into account the personal circumstances of individual investors.

ASIC's investigations into the collapse of Storm continues. The proceedings are contested.