IAS has sent a letter to shareholders about the legal action taken by the bank in the Federal Court.
“The directors are very confident that a positive outcome will eventuate because the loss suffered by the CBA is due totally to their own ineptitude,” IAS chairman Barry Coulter said in the letter.
The bank is suing IAS for compensation and damages in relation to $17 million stolen from the bank by Kim Faithfull, a former manager of the CBA\’s Karratha bank in Western Australia.
Mr Faithfull, which is currently serving a five-year jail term, spent the money over five years on bets on thoroughbred and harness racing with IAS.
The bank claims IAS should have known that Mr Faithfull was a pathological gambler, which would have alerted IAS to the fact that the money was stolen.
But IAS says Mr Faithfull\’s gambling habits were “neither unusual nor extraordinary amongst the scale and nature of the wagering of a number of IAS\’s customers.”
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