ASIC obtains injunctions against SMSF scam
The Australian Securities and Investments Commission (ASIC) has successfully applied to the Federal Court of Australia for urgent interim injunction against PW Kitt Co and sole director Larry Dawson for a fraudulent self-managed superannuation fund (SMSF) advisory business.
The investigation was commenced as part of ASIC’s response to the increase in financial scam activity due to the COVID-19 pandemic.
ASIC’s application was based on concerns the defendants obtained almost $7 million in Australian investor funds by cold-calling consumers and operating the websites smsfadvisory and pwkittco.
ASIC submitted to the court that the defendants had been using the same or similar business names to an unrelated business, SMSF Advisory Services and P.W. Kitt & Co.
It was also alleged it used the Australian financial services (AFS) licence of another company, which ASIC remained concerned the defendants had no connection to.
Michael Hill, Anthony Connelly and Katherine Sozou of McGrath Nicol had been appointed as receivers and managers to the property and assets of the defendants, and were required to report back to the court by 18 September.
The instructions included in the orders would:
- Appoint receivers and managers to the property and assets of the defendants;
- Require the receivers to provide a report to the Court and ASIC within 42 days regarding the affairs of the defendants;
- Stop the defendants from removing, dealing with or diminishing the value of property or assets, including funds in bank accounts held by the defendants; and
- Restrain Dawson from leaving Australia.
AUTHOR
Chris Dastoor
Recommended for you
With wealth management M&A appetite only growing stronger, Business Health has outlined the major considerations for buyers and sellers to prevent unintended misalignment between the parties.
Industry body SIAA has said the falling number of financial advisers in Australia is a key issue impacting the attractiveness and investor participation of both public and private markets.
As advisers risk losing two-thirds of FUA during the $3.5 trillion wealth transfer, two co-founders underscore why fostering trust with the next generation is vital to retaining intergenerational wealth.
As advisers seek greater insights into FSCP determinations, what are the various options considered by the panel and can a decision be appealed?
