The Australian Securities and Investments Commission (ASIC) has banned a former Sydney financial adviser for five years after running up debts of $9.8 million.
Daniel McSweeny was a former director of 14 failed companies which he used to operate as financial services businesses. The companies were placed into administration between 21 August 2014 and 8 September 2015, owing $9.8 million to their creditors.
A person can be disqualified by ASIC if they were an officer of two or more companies which were wound up and a liquidator provided a report to ASIC about the company’s inability to pay its debt.
ASIC found McSweeny had fraudulently misappropriated company money, used the company structure for his own dishonest means and showed a complete disregard of his director duties.
He also failed to observe requirements to lodge documents with the Australian Taxation Office (ATO), to ensure companies complied with their obligation to keep written financial records and to prevent the companies from trading while possibly insolvent.
McSweeny’s ban came into force on 2 May 2019 and will last until 1 May 2024.
Comments
How on earth can a person who has committed criminal fraud be banned for only 5 years? Committing fraud should mean a manditory lifetime ban in my opinion.
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