Three financial services businesses ordered to wind up
The Australian Securities and Investments Commission (ASIC) has successfully applied to the Supreme Court of Queensland for three south-east Queensland based companies to be wound up following its investigation into an unlicensed and fraudulent financial services business.
The regulator alleged Secured Collateral, Diversified Collateral, Intra Management and their respective sole directors, Keiron Michael Weertman, Dylan Robson and Shane Rodney Hasell, operated an unlicensed and fraudulent financial services business that defrauded investors of approximately $1 million between May and October 2012.
As part of decision, the Court ordered that William Fletcher and Tracy Knight of Bentleys Corporate Recovery be appointed as the liquidators of the companies, and the respondent companies and individuals pay ASIC's costs.
Prior to the Court's action, the regulator had carried out an investigation into an entity called Secured Private Wealth in relation to cold calling allegations, and also into a website designed to induce investors to deposit funds into the accounts of Secured Collateral, Diversified Collateral and Intra Management.
According to ASIC, investors were promised that the funds would be used to buy shares on behalf of the investors and generate returns well above market returns.
It is also alleged that the sole directors of each of the companies withdrew the money from the company bank accounts in cash.
ASIC's inquiries to date have not been able to substantiate that shares were purchased on behalf of investors.
"While there are still funds not accounted for, today's orders increase the likelihood that investors will see some of their investment funds returned to them," ASIC commissioner Greg Tanzer said.
The Court declined to make declarations of contravention by the companies of carrying on a financial services business without an Australian financial services (AFS) licence, or declarations that the directors were knowingly involved in such contraventions.
The Court also declined to grant injunctions to prevent the companies or directors carrying on a financial services business, and from operating any internet websites promoting, advertising or offering financial services, without holding an AFS licence.
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