ASIC cracks down on super release promoters
Two executives of a firm that allows superannuation fund members to redeem their super today appeared in the Gold Coast Magistrates Court charged with making false or misleading statements in contravention of the Superannuation Industry (Supervision) (SIS) Act 1993.
Gold Coast-based Timothy Barritt and Kelvin Mills were charged with 12 and three counts respectively, of making false or misleading statements resulting in trustees of some super funds to withdraw preserved superannuation benefits and contravening the SIS Act.
The charges were brought following an investigation by theAustralian Securities and Investments Commission(ASIC).
The defendants operated a business called Super Release, which aided members of the public to redeem their super, however ASIC alleges that Barritt and Mills made false or misleading statements in order to secure the payment of those benefits in circumstances that did not meet a condition of release under the SIS Act.
The condition of release states that the preserved component of a person's benefit cannot be paid out in cash unless a person reaches retirement age or becomes eligible on financial hardship or compassionate grounds.
ASIC alleges that Barritt and Mills made representations to various superannuation funds that member benefits would be rolled over and preserved in either TM Barritt Superannuation Fund or KOM Superannuation. However the peak regulator asserts that in each case member superannuation benefits were not preserved.
The charges follow a joint application in the Federal Court on 22 May 2002, by ASIC, the Australian Prudential Regulation Authority (APRA) and the Australian Tax Office (ATO) which sought permanent injunctions against the pair along with the latter’s wife, Carolyn Mills.
Mills will reappear in the Gold Coast Magistrates Court on 10 October 10, while Barritt is tabled to appear on November 5.
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