The Federal Court of Australia has officially appointed provisional liquidators, Korda Mentha’s Leanne Chesser and Craig Shepard, to investigate Ostrava Equities, in response to an application by the Australian Securities and Investments Commission (ASIC) over allegations surrounding unconscionable conduct.
Chesser and Shepard have been appointed to examine the conduct of financial adviser Bradley Grimm and former ASIC employees and Ostrava Equities director, Vanessa Ash, who have been allegedly engaged in unconscionable conduct in the form of unauthorised withdrawals of client funds and charging of fees by Ostrava Equities, until 18 December.
Ostrava Equities is a financial services house specialising in self-managed superannuation funds (SMSFs) and its related entities include Ostrava Wealth Management Pty Ltd, Ostrava Asset Management Pty Ltd and Ostrava Securities Pty Ltd. Grimm is also the sole director of Trade BTC Pty Ltd, Prometheus Capital Pty Ltd, Beta Pharmacology Pty Ltd and Thrive Lending Pty Ltd – all of whom are now under investigation.
ASIC first commenced proceedings against Grimm, Ash and their companies (the corporate defendants) in April this year.
ASIC confirmed that on May 20, 2008, Grimm declared himself bankrupt and stepped down as a director of Ostrava Equities, to be replaced by Ash who was appointed as a director of the firm also on May 20th that year.
Ash then became the sole director on April 29, 2011 and remains the sole director of Ostrava Equities.
A report by the provisional liquidators is set to be prepared and produced before the Court and ASIC on November 23 next month.
According to ASIC, this report will identify the assets and liabilities of each of the corporate defendants, examine the likelihood of funds being returned to creditors as well as address any suspected contraventions of the Corporations Act 2001.
