Compliance
Australian Court Orders Closure Of Three Unlicensed, Fraudulent Financial Services Businesses

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.
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:
· 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.
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.
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.