Ex-CEO and CFO of Benjamin Hornigold face criminal charges
Two ex-senior executives of Benjamin Hornigold Limited have been charged with dishonest breach of duties and misleading the Australian Securities Exchange (ASX).
The Australian Securities and Investments Commission (ASIC) alleged Stuart McAuliffe, former chief executive officer, and Samuel Elderfield, former chief financial officer, failed to act in the best interests of the investment company regarding payments worth $3.8 million between 26 June to 29 June 2018.
The payments were made to John Bridgeman Limited, a related entity and investment manager for Benjamin Hornigold.
Failing to act in the best interests of a corporation is an offence under s 184(1) of the Corporations Act.
Per ASIC’s statement, McAuliffe also caused misleading information to be provided to the Australian Securities Exchange about the payments in conduct that was in contravention of s 1309 of the Corporations Act.
The firm had been suspended from trading on the ASX in July 2018 and a new board was appointed in June 2019, with trading in the company’s shares of Benjamin Hornigold resuming on 25 June 2020.
Ex-CFO Elderfield appeared in Brisbane Magistrates Court on Friday, 3 March and was charged with a criminal offense, with prosecution listed for further mention on 16 June 2023.
McAuliffe did not appear in court when his name was called and the court ordered he appear on 17 March 2023 for a further mention of his prosecution.
At the time of the alleged offending, the maximum penalty for dishonest breaches of directors’ and officers’ duties, and for knowingly providing or permitting the provision of misleading information to the operator of a financial market, was five years’ imprisonment.
The matter was being prosecuted by the Commonwealth Director of Public Prosecutions after an investigation by ASIC.
AUTHOR
Rhea Nath
Recommended for you
Several financial advisers have been shortlisted in the ninth annual Women in Finance Awards 2025, to be held on 14 November.
Digital advice tools are on the rise, but licensees will need to ensure they still meet adviser obligations or potentially risk a class action if clients lose money from a rogue algorithm.
Shaw and Partners has merged with Sydney wealth manager Kennedy Partners Wealth, while Ord Minnett has hired a private wealth adviser from Morgan Stanley.
Australian investors are more confident than their APAC peers in reaching their financial goals and are targeting annual gains of more than 10 per cent, according to Fidelity International.
