ASIC accepts EU from liquidator
The Australian Securities and Investments Commission (ASIC) has accepted an enforceable undertaking (EU) from an Adelaide-based liquidator of accounting firm, Anthony Matthews and Associates.
Anthony Christopher Matthews, who was a voluntary administrator of agricultural commodities trader, Sapphire, failed to properly investigate and document investigations and report findings to ASIC.
ASIC found he had failed to identify possible insolvent trading claims against Sapphire's holding company and/or ultimate holding company, investigate a deed of settlement compromising debts, investigate differences in the value of stock as at key dates, and investigate the attempted assignment of two sales contracts.
ASIC also found he did not provide a satisfactory report to creditors and report possible director misconduct to ASIC.
Matthews was appointed as voluntary administrator of Sapphire in March 2014, when the firm stopped trading with unsecured debts of over $10 million.
Matthews has now taken steps to carry out public examinations of Sapphire's director and other parties, update practice systems and procedures, including investigation checklists, and appoint an external consultant to provide bi-monthly staff training sessions.
He cannot accept any new appointments for two months except one matter which he had filed consent to act with the Court, and he also must appoint an independent expert at his own cost to review his insolvency practice.
The expert will report to ASIC, and ASIC could publish the results of the report.
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