Lachlan John King permanently banned – February 7, 2025
The former financial adviser Lachlan John King has been permanently banned from working or engaging in financial services or credit activities following his conviction for fraud.
King was earlier in May 2024 convicted of two counts of fraud where he misappropriated a total of A$1,797,493.66 ($1,129,426) from eight clients between February 2012 and March 2019.
He was given two prison sentences , one of five and and one of eight years, with the sentences to be served concurrently.
Director charged with dishonestly using her position – February 7, 2025
The NSW director Vickie Anne Vella has been charged with two offences of dishonestly using her position as a director to gain personal advantage. The charges were in connection with Midcoast Reinforcement Pty Ltd, and Coast Reo Pty Ltd (both in liquidation), where she transferred company funds to a credit card and other accounts for a total of A$1,565,298 ($985,010). This violated section 184(2)(a) of the Corporations Act 2001 (Cth).
The alleged offences took place between August 4, 2016 and April 5, 2018, when Midcoast owed the Australian Tax Office and creditors a total of A$797,050 ($501,457), and Coast Reo went into liquidation owing $1,170,989 ($736,678) to creditors.
Director charged with obtaining financial advantage by deception – February 5, 2025
The NSW director Mark Barnes has been charged with three offences relating to selling false invoices from his company Barnes Marketing Services Pty Ltd (in liquidation).
Allegedly, these invoices were sold to Handley Advisory Partners Pty Ltd (trading as FIFO Capital Metro NSW), which provides advance payments on the face value of purchased invoices – in this case purportedly for services to the Sydney Symphony Orchestra in amounts of A$1,318,979 ($828,577) and A$1,159,645 ($728,484) and including an attempt to dishonestly obtain A$118,206 ($74,223).
Barnes repaid the amounts to FIFO on the repayment date, but kept sending false invoices to have funds available.
The alleged offences took place between May 2018 and January 2020, and Barnes was charged with violating section 192E(1)(b) of the Crimes Act 1900 (NSW) with:
- two offences of dishonestly obtaining a financial advantage by deception; and
- one offence of attempting to dishonestly obtain a financial advantage by deception.
Anthony Paul Torre guilty of fraud and stealing – February 3, 2025
Anthony Paul Torre, a former financial adviser, has pleaded guilty to three counts of stealing and two counts of fraud relating to the misappropriation of A$1,030,000 ($632,887) of client funds – violations of sections 378 and 409 of the Criminal Code (WA).
The alleged offences took place between March 2010 and January 2015.
A sentence hearing is set for June 9.
Court updates
Successful appeal on Federal Court decision on voluntary disclosure regime – February 7, 2025
The Full Federal Court has upheld ASIC’s appeal in its case against Rory Macleod, former managing director and CEO at Noumi, for finding that “providing documents to ASIC pursuant to a Voluntary Disclosure Agreement does not necessarily waive any valid legal professional privilege claim.”
“We are pleased the Full Court has determined that production of documents in accordance with these agreements does not automatically result in a waiver of privilege.”
Sarah Court, Deputy Chair, ASIC
Noumi was earlier, in August 2024, ordered to pay a A$5m ($3.3m) penalty after admitting to breaching continuous disclosure obligations by overstating the value of inventory.
Campbell Nicholas, former CFO and Company Secretary of Noumi, was later in October ordered to pay a A$100,000 ($66,836) penalty and to be disqualified from managing corporations for four years after continuous disclosure obligations. He was found to have been “knowingly concerned” in the company’s disclosure breaches, to have breached his officer duties, and to have given false or misleading information to company directors and auditors.
The proceedings against Macleod are continuing.
ART upholds decision to disqualify MD Nazrul Islam
The Administrative Review Tribunal has affirmed the decision to disqualify the self-managed superannuation fund (SMSF) auditor MD Nazrul Islam after his failure to comply with auditing standards on three audit files.
ASIC disqualified Islam in February 2024 from being an approved SMSF auditor, a decision he appealed later in April.
ASIC news weeks 5–6
Call on superannuation trustees over weak scam and fraud practices
Superannuation trustees need to strengthen anti-scam practices, otherwise they risk exposing members to harm, ASIC has said. In an open letter signed by ASIC Commissioner Simone Constant, the Commission has warned trustees about weak scam and fraud practices. None of the 15 reviewed superannuation trustees were found to have an organization-wide scams strategy in place.
“With scammers employing increasingly sophisticated tactics to manipulate superannuation members, taking prompt and proactive steps to monitor and address scam activity is vital,” ASIC states.
Speech
In a keynote speech at the Conexus Financial Super Chair Forum on January 30, ASIC Commissioner Simone Constant talked about the superannuation trustees’ issues – member services, scams and consistency and transparency across both public and private markets, and how the Commission plans to tackle them.
“Our priorities in superannuation are unchanged – because more change is needed,” Constant said. “Our enforcement action will continue to target member service failures as well as misconduct exploiting superannuation savings.”
She said this would include ensuring that trustees are transparent, accountable, and can meet customers’ expectations.
Simone Constant also sent out a letter to superannuation trustees in November 2024, urging them to improve their death benefit claims handling practices, and to address any identified deficiencies around them.
Scam alert about fake Bunnings site
ASIC is warning consumers about an investment bond scam that is impersonating Bunnings Warehouse. The fraudulent site advertises fake sustainability investment bonds with three investments between A$50,000 and A$250,000, with higher than market returns of up to 9%.
Small businesses enforcement action update
Today, small businesses employ about half of the private sector workforce and contribute more than A$500 billion ($312 billion) to the Australian economy each year.
Between October 2 – December 31, 2024, ASIC took enforcement action against:
- four company directors by disqualification;
- one director for making misleading statements to ASIC;
- one director for making false statements to ASIC; and
- 58 individuals for 107 offences of failing to assist registered liquidators connected to company collapses – with a total of A$342,400 ($213,457) in fines and A$6,692 ($4,172) in costs.
Criminal prosecutions and administrative actions against directors resulted from the failures to:
- maintain proper books and records;
- lodge tax returns;
- make sure companies paid statutory debts such as tax bills, workers compensation and land taxes;
- assist liquidators; and
- lodge false and misleading documents with ASIC; and
- for insolvent trading.
Consultation on BNPL regulatory guidance
Starting June 2025, buy-now-pay-later products will be subject to new laws, such as holding a credit licence and comply with obligations under the National Consumer Credit Protection Act 2009. ASIC has therefore released draft Regulatory Guide 000 Low cost credit contracts and Consultation Paper 382 Low cost credit contracts which it now seeks feedback on – which can be submitted until March 7.
