Directors face criminal charges for role in unlicensed business
The two former directors of an unlicensed financial services business will face 30 charges between them in the Melbourne Magistrates Court in November for attempting to pervert the course of justice following an Australian Securities and Investments Commission (ASIC) investigation into the operation of their business.
Karl Heinz Veljkovic and Barry John Patrick, both from Melbourne, were initially charged with fraud in March, 2006, in relation to the operation of their company, Teilis Financial Services Pty Ltd, which is now in liquidation.
It is alleged that after criminal charges had been laid, Patrick and Veljkovic informed some of their investors that they would be treated less favourably as creditors while they remained witnesses in respect to the charges brought before them by ASIC.
Veljkovic faces a total of 22 charges, which include obtaining property by deception, fraudulently encouraging people to redeem their superannuation and providing unlicensed investment advice.
Patrick faces nine charges, which include failing to keep company books and records and failing to provide assistance to the liquidators of Teilis.
ASIC alleges that Veljkovic induced investors in Teilis to rollover their superannuation benefits into self-managed superannuation funds.
ASIC claims these funds were then used to support other companies and businesses associated with Veljkovic.
In addition to Teilis, Veljkovic and Patrick operated five companies between them including Aaronsonic Credits Limited, Supatrust Finance Limited, Pacific Petroleum Services Pty Limited, HBL Holdings Pty Limited and Texol Petroleum Services Pty Limited.
All six companies went into liquidation in October 2001, and since then Veljkovic and Patrick have been restrained from carrying on the unlicensed investment advice and securities business.
The liquidator has already advised that there are insufficient funds available for any return to the investors.
Recommended for you
AMP CEO Alexis George has said addressing Australians’ retirement concerns should be "front and centre for policymakers” after its research revealed only half of Australians are confident about their retirement.
LGT Crestone has announced a rebrand, marking a “decisive milestone” following its acquisition of Commonwealth Bank’s high-net-worth financial advisory business in June.
The launch of a low-cost menu for BT Panorama will allow advisers to service a wider range of clients from one platform and potentially run a more profitable business, according to specialist Recep Peker.
Retail investment into private credit funds could surpass that of sophisticated investors, according to ASIC, but the regulator admits it is unsure how and where these individuals are first being introduced to the vehicles.
