Lifestyle group MD faces sentencing
Two people associated with the failed Lifestyle property group in Melbourne will know their punishment later this month after being ordered to appear for sentencing in the Melbourne County Court on October 14.
The company’s former managing director, Jon Melville McKenney, and employee John Lloyd Caust, will appear for sentencing after having pleaded guilty to a combined total of more than 20 charges from theAustralian Securities and Investments Commission(ASIC) in March.
This follows the banning for three years in May of a director of a taxation business, Adam David Reeves, who recommended clients to projects managed by the Lifestyle group, which has since failed.
McKenney pleaded guilty to charges of failing to act honestly, making improper use of his position as a director of a number of companies within the Lifestyle group and making false and misleading statements in a document lodged with ASIC.
Caust pleaded guilty to charges relating to improper and dishonest use of his position as an employee of the companies.
The charges against both men related to them obtaining more than $5 million from investors for property development projects undertaken by the Lifestyle group. ASIC brought the charges against the two men following an investigation into the collapse of the group in 2000.
In July and August of that year, ASIC appointed a liquidator to the 54 companies within the group, which are believed to owe creditors approximately $24 million.
Recommended for you
Licensing regulation should prioritise consumer outcomes over institutional convenience, according to Assured Support, and the compliance firm has suggested an alternative framework to the “licensed and self-licensed” model.
The chair of the Platinum Capital listed investment company admits the vehicle “is at a crossroads” in its 31-year history, with both L1 Capital and Wilson Asset Management bidding to take over its investment management.
AMP has settled on two court proceedings: one class action which affected superannuation members and a second regarding insurer policies.
With a large group of advisers expecting to exit before the 2026 education deadline, an industry expert shares how these practices can best prepare themselves for sale to compete in a “buyer’s market”.
