Charges over $8 million lost by investors
The Australian Securities and Investments Commission (ASIC) has obtained Supreme Court consent orders against a Queensland man it alleges raised nearly $8 million from investors without holding an Australian Financial Services Licence.
The regulator announced that it had obtained the orders in the Queensland Supreme Court against Peter Hugh Mettam, who it alleges has failed to comply with financial services law by conducting a financial services business without a licence.
ASIC has alleged that since January 2004, Mettam or agents acting on his behalf raised at least $7,913,949 from 88 investors who were promised rates of return that were higher than market interest rates.
ASIC said it would be alleging that a significant amount of the money deposited with Mettam was for the apparent discharge of fees and other legal costs associated with releasing large parcels of money held overseas.
ASIC said the investors had not received any returns on their investments made through Mettam and had not been provided with any documentation relating to their investments. It said it would be also be alleged that Mettam had no other source of income during the period.
The regulator said the matter had also been referred to the Australian Taxation Office under the Project Wickenby provisions of the Taxation Administration Act.
AUTHOR
Mike Taylor
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