ASIC drops Westpoint case, Carey to sue Norm Carey leaving the Federal court in 2010 after ASIC reported they would return his passport. An asset stripping case against former Westpoint officers Norman Carey and Graeme Rundle has spectacularly collapsed after the surprise emergence of a key document two weeks into the trial. The document could prove the innocence of the property entrepreneurs. Mr Carey, whose property investment business Westpoint failed in 2006 owing investors more than $388 million, tonight told Business Day he would sue the Commonwealth over the aborted trial with his legal costs at least $500,000 and his reputation damaged. ""This has hung over my head for the last five years and I've always maintained that I acted honestly,"" Mr Carey told Business Day. ""I will definitely be suing ASIC to get back my cost and damages, what ASIC are facing is effectively wrongfully accusing someone."" In a brief statement released last night ASIC said it had located an important document from a third party which ended its case against Mr Carey and Mr Rundle in the District Court of Western Australia. ""In accordance with ASIC's procedural fairness obligations, ASIC immediately disclosed the document and copies were given to Mr Carey and Mr Rundle, and the court."" The failed case centred around the allegation that Mr Rundle and his business Westpoint dishonestly backdated the transfer of an option to buy Perth's Warnbro Fair Shopping Centre knowing that the company was battling to survive. It is believed the document is a detailed file from auditor KPMG which proves the option to buy the shopping centre was extended, and therefore the transfer was not backdated as alleged. A media spokesman for ASIC last night said the regulator would not comment further on the failed case against the duo. ""Following an assessment of the document in the context of the prosecution's case, the Commonwealth Director of Public Prosecutions yesterday advised the District Court of Western Australia that the case should proceed no further and filed notices of discontinuance,"" an ASIC statement said. This allowed property spruiker Mr Carey to walk free from the Perth District Court Tuesday after the withdrawal the asset stripping charge against the former Westpoint boss and his deputy Mr Rundle.