ASIC bans two from industry
By Freya Purnell
TheAustralian Securities and Investments Commission(ASIC) has taken action in two areas of regulatory focus of late — early release superannuation schemes and agribusiness projects.
The Federal Court has obtained permanent injunctions from Mark Walter David relating to his involvement in a scheme promoting the illegal and early release of superannuation benefits, with David also making a declaration admitting that he carried on a financial services business without holding an Australian Financial Services Licence.
Meanwhile, Western Australian promoter Joseph Karra has been banned from acting as a representative of a securities dealer for three years, as a result of his involvement in Exotic Timbers of Australia, of which he acted as a director and authorised representative.
The permanent injunctions relating to David follow an application by ASIC, and effectively restrain David from ever advertising, promoting, operating or dealing with any business facilitating the redemption of superannuation interests.
Other promoters of the scheme, including Justin Mark Sheehan, Errol Lloyd Cassidy and Sharlene Jayne Moore, and a super fund trustee, Bronwynne Elizabeth Clarke, have already been issued with a permanent injunction, while promoter Denis Jon Davis is awaiting a final hearing.
ASIC director of enforcement Allen Turton says: “ASIC is closely examining businesses which offer to facilitate the early redemption of superannuation benefits, and will take action to ensure businesses that offer early redemption in contravention of the law are brought before the courts.”
Meanwhile for Karra, ASIC found that he had not performed his duties as a representative of a securities dealer efficiently and fairly from 1998 to 2002, and as a result of his conduct, may not do so in the future.
Exotic Timbers was involved in two Northern Territory-based agricultural managed investment schemes, with more than $6 million invested through the schemes, and was wound-up in June 2003 following action by ASIC, which found problems with conduct including failure to lodge a disclosure statement and financial and directors’ reports.
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