Two Melbourne based accountants have been permanently banned from managing corporations after theAustralian Securities and Investment Commission (ASIC)alleged they misused funds invested in two Victorian property trusts.
ASIC today obtained consent orders in the Federal Court of Australia to disqualify the two accountants, James Stanley Phillips and Ian Francis Cole, from managing corporations.
Phillips is the managing partner of Landy and Company DFK, a Melbourne based accounting firm. Cole is a senior accountant at the company.
ASIC alleged funds invested in the two property trusts were loaned to entities related to Phillips and Cole without proper documentation or proper disclosure to unit-holders.
According to ASIC, the two trusts were also unregistered and were not being operated by a licensed responsible entity
On May 2, 2002, the Federal Court made an interim order replacing Terra Firma, a company associated with Phillips and Cole, as the trustee of the two property trusts, the Faithful Street (Wangaratta) Property Trust and the Fyans Street (Geelong) Property Trust
Investors in the property trusts have since agreed to the winding up of the trusts, following reports by the new trustees detailing significant irregularities in relation to the management of the trusts.
The court also permanently banned Phillips and Cole, and any entities associated with them, from directly or indirectly operating managed investment schemes, carrying on a financial services business and accepting or dealing in money from clients or the public for the purpose of investment in any financial product.
