Former director pleads guilty to dishonest conduct

ASIC SMSF superannuation funds

3 August 2023
| By Jasmine Siljic |
image
image
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:

AUTHOR

Add new comment

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

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

JOHN GILLIES

tHOSE 989 WHO ARE CEASED WILL GO ON TO LIVE A LONG AND HEALTHY LIFE JG...

4 days 11 hours ago
Chris Cornish

What a sticth-up. Looks like Labor Senator Jess Walsh follows Stephen Jones who follows what the industry super funds ...

4 days 8 hours ago
Peter Swan

This report is a blatant display of far-left factional partisanship, treating superannuation funds as state property and...

4 days 9 hours ago

ASIC has cancelled the AFS licence of a Sydney wealth firm, the fifth Sydney firm to see a cancellation since the start of the year....

2 weeks 5 days ago

More than 20 winners from the funds management industry have been crowned at this year’s awards....

1 week 5 days ago

ASIC has obtained interim orders from the Federal Court to freeze the assets of a registered managed fund and prevent its former director from leaving Australia. ...

6 days 8 hours ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND