Former Keystone director sees company assets frozen
A judge has frozen the assets of former Keystone director Paul Chiodo’s company and ruled in ASIC’s favour that administrators can be appointed to wind up the firm.
In Federal Court on 5 September, the judge ordered a “freezing order” be made against Chiodo Corporation.
This prevents the disposing of, dealing with, or diminishing the value of funds held in two Westpac bank accounts of Chiodo Corporation.
Any payments above the value of $10,000 must receive the consent of Jason Tracy and Lucica Palaghia of Deloitte Financial Advisory who have been appointed as receivers of Keystone Asset Management.
A report must be made on the first and third Friday of each month of all payments paid in the previous fortnight.
The only payments allowed to be made are those in the proper and ordinary course of business, including paying business expenses and reasonable legal expenses.
Failure to abide by these measures leaves the individual Paul Chiodo liable to imprisonment, sequestration of property, or other punishment.
ASIC had previously obtained interim orders from the Federal Court in June freezing the assets of the Shield Master Fund (SMF), a registered managed fund whose responsible entity is Keystone Asset Management.
A second matter heard by the court related to the wind-up of Keystone which ran the SMF.
In August, the Federal Court appointed Tracy and Palaghia of Deloitte as receivers of the property of Keystone Asset Management.
On 30 August, ASIC filed an application seeking orders that this voluntary administration end, and that Tracy and Palaghia be appointed as provisional liquidators instead. Alternatively, Scott Langdon, John Mouawad and Michael Korda of KordaMentha, who have been appointed as voluntary administrators of Keystone, should be replaced by Tracy and Palaghia.
In Federal Court on 5 September, Justice Moshinsky ruled that Tracy and Palaghia could be appointed as administrators of Keystone.
AUTHOR
Laura Dew
Recommended for you
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?
Amid the current financial adviser shortage, advice firm Link Wealth is looking to expand its financial literacy program for high school students across the country.
TAL Risk Academy has updated its range of ethics courses to help financial advisers meet their CPD requirements following adviser feedback, including interpreting FSCP determinations.
