Victims of Financial Fraud (VOFF) has called for former Australian Securities and Investments Commission (ASIC) chair, Greg Medcraft, be listed on the Global Magnitsky Act (GMA), alleging that he may have enabled the banks to commit “unconscionable” acts.
The GMA allowed the US Government to sanction corrupt government officials implicated in any abuses worldwide.
The victims group alleged that Medcraft’s “preferential treatment” of the banks when at ASIC may have enabled the extensive misconduct revealed by the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry to “flourish”, leading the “ordinary hardworking people” being ripped off.
It had previously raised similar concerns about Medcraft’s oversight during the Trio Capital scandal.
“History shows ASIC cannot identify known criminals who are operating within the Australian financial system. ASIC are not safeguarding Mum’s and Dad’s superannuation and investments from predatory fraudsters,” VOFF said.
“Mr Medcraft’s name should be listed on the Global Magnitsky Act, not that any wrongdoing is suggested, but following Mr Medcraft’s leadership of our chief financial regulator, families have been left in ruin and lives destroyed.
“The Trio Capital story and the findings of the current Royal Commission are testament to his very poor performance and it can be clearly seen that, rather than creating ‘a hellhole for white collar crime’, Australia has become a fertile playground for financial crime, fraud and malfeasance.”
It said that utilising the GMA could stop perpetrators being able to hide their behaviour through the corporate veil or confidentiality laws.
VOFF’s attack on Medcraft came as the Royal Commission faced growing calls to investigate the behaviour of the regulator more deeply.
