Former director pleads guilty to dishonest conduct

3 August 2023
| By Jasmine Siljic |
expand image

Former director of Secure Investments and Aquila Group, Mudasir Mohammed Naseeruddin, has pleaded guilty to two counts of dishonest conduct and two counts of failing to discharge his duties as a director in the best interests of a company.

Naseeruddin was first arrested and charged in December 2020 after ASIC took civil action to obtain interim orders to preserve the assets of Secure Investments Pty Ltd and Aquila Group Pty, Naseeruddin’s companies.

The two firms were wound up in October 2020 after the director had operated a financial services business without an appropriate licence. 

Investors were encouraged by Naseeruddin to rollover their superannuation funds into newly formed self-managed super funds (SMSFs) and to lend those funds to his two firms. 

The former director dishonestly obtained over $520,000 from six investors between 13 May 2015 and 6 January 2020, under the belief that the funds would be invested towards property developments.

However, ASIC revealed that only a small portion of their funds was invested this way.

Moreover, Naseeruddin unlawfully used his position as director to withdraw more than $550,000 from the firm to purchase shares in a security company for his own benefit between 14 July 2016 and 23 December 2019.

The maximum penalty for dishonest conduct while carrying a financial services business is 10 years imprisonment for offences committed up to 12 March 2019. Offences committed on or after 13 March 2019 could see 15 years imprisonment. 

Additionally, the maximum penalty for a breach of directors’ duties is five years imprisonment for offences committed up to 12 March 2019 and 15 years imprisonment for offences committed on or after 13 March 2019.

The case will return to court for a plea hearing on 6 December 2023.

Read more about:


Add new comment

The content of this field is kept private and will not be shown publicly.

Recommended for you


Stay up to date with Australia’s top news and information source for the wealth management industry


sub-bg sidebar subscription

Never miss the latest news and developments in wealth management industry

Chris Cornish

"Past performance is no guarantee of future results" is something ASIC are always keen to say. Yet when it comes to th...

10 hours ago
Stewart Gibson

Wow, distrust in the Government. Who would have thought that people would distrust that merry band of incompetents that ...

1 day 12 hours ago
One foot out the door

“The advice satisfaction has moved up, and that’s about rebuilding trust, delivering on what we say we will do and not m...

6 days 15 hours ago

AustralianSuper and Australian Retirement Trust have posted the financial results for the 2022–23 financial year for their combined 5.3 million members....

7 months 2 weeks ago

A $34 billion fund has come out on top with a 13.3 per cent return in the last 12 months, beating out mega funds like Australian Retirement Trust and Aware Super. ...

7 months ago

The verdict in the class action case against AMP Financial Planning has been delivered in the Federal Court by Justice Moshinsky....

7 months 2 weeks ago