Print this article
Australian Court Orders Closure Of Three Unlicensed, Fraudulent Financial Services Businesses
Chrissy Coleman
2 May 2013
Following an investigation into an unlicensed and fraudulent financial services business, the Australian Securities and Investment Commission has successfully applied to the Supreme Court of Queensland for three South-East Queensland based companies to be wound up. · Secured Collateral, Diversified Collateral and Intra Management be wound up; · William Fletcher and Tracy Knight of Bentleys Corporate Recovery be appointed as the liquidators of the companies; and · The respondent companies and individuals pay ASIC’s costs. Investigations ASIC said it investigated an entity called Secured Private Wealth, which it alleged used cold calling and a website to induce investors to deposit funds into the accounts of Secured Collateral, Diversified Collateral and Intra Management. Investors were promised that the funds would be used to buy shares on behalf of the investors, and generate returns well above market returns, according to the regulator's statement. The court declined to make declarations of contravention by the companies of carrying on a financial services business without an Australian financial services licence or declarations that the directors were knowingly involved in such contraventions. The court also declined to grant injunctions to prevent the companies or directors carrying on a financial services business, and from operating any internet websites promoting, advertising or offering financial services, without holding an AFS licence, the statement said.
According to a statement released earlier this week by the regulatory body, ASIC alleged Secured Collateral, Diversified Collateral, Intra Management and their respective sole directors, Dylan Robson, Keiron Michael Weertman, and Shane Rodney Hasell, “operated an unlicensed and fraudulent financial services business that defrauded investors of approximately A$1,000,000 ($1.03 million) between May and October 2012”.
The court ordered that:
ASIC also alleged that Weertman, Robson and Hasell withdrew the money from the company bank accounts in cash. The court noted that each director must have been aware that they were involved in some form of "unlawful exercise". ASIC’s inquiries to date have not been able to substantiate that shares were purchased on behalf of investors, the statement said.
ASIC commissionerGreg Tanzer said ASIC took this action to ensure that an independent person could review the scheme.
“While there are still funds not accounted for, today’s orders increase the likelihood that investors will see some of their investment funds returned to them. Unfortunately, with many schemes of this nature there are no returns," he said.