Former director pleads guilty to dishonest conduct
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.
AUTHOR
Jasmine Siljic
Recommended for you
Financial Services Council chief executive, Blake Briggs, is urging Minister for Financial Services, Stephen Jones, to take advantage of the QAR opportunity to reduce regulatory duplication and ensure advice is affordable.
Former chair of the House of Representatives’ Standing Economics Committee, Tim Wilson, is planning a return to politics after losing his seat in the 2022 federal election.
Morningstar is going to offer research ratings of funds in the $3.5 trillion superannuation sector for the first time in response to demand from financial advisers.
Treasurer Jim Chalmers has opened a consultation into the design of the annual superannuation performance test, canvassing views on a range of reform options.
Add new comment