Supreme Court winds up unlicensed financial services company

The Australian Securities and Investments Commission (ASIC) has obtained Supreme Court orders against an unlicensed financial planning business found to have defrauded 36 investors of $350,000.

Supreme Court of Queensland declarations made on 30 January stated that Golden Sparrow, GS Contracting and Michelle Margaret Bruhn carried on a financial services business without holding an Australian Financial Services licence. 

The court subsequently ordered the two companies to be wound up and has appointed William Fletcher and Katherine Barnet of Bentleys Corporate Recovery Pty Ltd as liquidators.

The court's decision came after ASIC alleged that Golden Sparrow, GS Contracting and Bruhn operated an unlicensed financial services business that used cold calling and a website to induce investors to deposit funds into a number of bank accounts held in the names of the abovementioned companies.

Investors were told that the funds would be used to buy shares on behalf of investors and generate returns of between 1 and 3 per cent.

ASIC also alleged that Bruhn was the sole director of these two companies and withdrew the money from company bank accounts.

According to the commission's investigation, between mid-August and November 2011, approximately $350,000 was deposited by investors into these accounts, and approximately $300,000 withdrawn by Bruhn.

The regulatory body's investigation into the actions of Bruhn and the two companies is continuing.