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This Week in Penalties... June 7th-June 13th

Friday 11 June 2021


The securities regulator has brought three criminal charges against EC Auditor and its director Robert James Evett for breaching auditing standards relating  profit and loss statements and balance sheets for Halifax investments for the three financial years in a row—June 2016, June 2017, and the June 2018. 

The Australian Securities and Investments Commission (ASIC) alleges that this conduct is in breach of the section 989CA (1) and 989CA (2) of the Corporations Act. 

Further to the charges, the maximum penalty for breaches in the auditing standards before July 2017 was $9000 for the director and the $45, 000 for the firm.  

The maximum penalty now $ 10, 5000 for the director and $52, 500 for the firm. 




Sydney-based financial planner Gavin Fineff of Sentinel Wealth Management has been permanently banned from providing any financial services for ‘misusing his position for personal gain’ and engaging in misleading and deceptive conduct. 

ASIC that the former financial planner sourced $ 5 million form ‘clients and individuals’ without their knowledge.

According to the regulator, he:

  • breached financial services laws by failing to act in the best interests of his clients and engaging in unlicensed conduct;
  • is likely to breach financial services laws in the future;
  • is not adequately trained or competent to provide financial services, perform any function as an officer that carries on a financial services business or control an entity that carries a financial services business; and
  • is not a fit and proper person to provide financial services, perform any function as an officer that carries on a financial services business or control an entity that carries a financial services business
 
 
Advance Choice Finance (ACF) was convicted and fined for making a false statement in credit license annual compliance statement certificate.

Former director of the former the mortgage broker company Ding Yang, though not convicted of an offence, aided, and abetted ACF in making false statements, but had to pay a recognizance of $1000. 
 
 



The securities regulator has commenced proceedings again Austal Limited and former CEO David Singleton through the Federal Courts for allegedly failing to the disclose a material change to the market before prior earnings guidance. 

The Australian Securities and Investments Commission (ASIC) also alleges that the shipbuilder engaged in misleading and deceptive conduct.

ASIC alleges that the ship builder breached its continual disclosure obligations   under s674(2) of the Corporations Act by not the disclosing that the possible requirement of a US$90 million (approximately AUD $117 million) write-back between the period of 6 June and 4 July 2016. 

 



Former Reliance and Reliance Franchise Partners Kimberly Hanson has been permanently banned from providing financial services for the misuse of $3 million held in trust.
The securities regulator alleges that these funds were sued to meet the companies operating expenses.