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This Week In Penalties 15 November - 19 November

Friday 19 November 2021

 
The Australian Securities and Investments Commission (ASIC) the has taken MLC Limited to the Federal Court for policy and services failures which adversely affected more than 260,000 consumers.

The securities regulator said that this conduct  led to $17.5 million in  financial harm.

ASIC Deputy Chair Sarah Court said in an official statement, “Consumers should be able to trust insurers to pay their full benefit in times of need and keep them informed about significant changes to their policies. This case alleges failures by MLC, over many years, to ensure a reliable delivery of basic and everyday insurance services.”




 
Former financial adviser Ezzat-Daniel Nesseim has plead guilty five criminal offenses.
These are as published in the Australian Securities and Investment Commission (ASIC) website:

  • dishonestly providing three backdated wholesale client certificates to ASIC in an attempt to persuade ASIC to cease or modify its inquiries;
  • giving false answers and information to ASIC, both under oath and in response to statutory notices, after questions were raised about these certificates;
  • making use of evidence he knew was fabricated, including doctored emails attached to his written statement and purported witness statements from individuals, in a hearing before an ASIC delegate; and
  • giving false testimony in a hearing before an ASIC delegate.



 
The Australian Securities and Investments Commission (ASIC) has taken A&M group to court for what the regulator alleges is misleading a coercive count against debtors.

These are the allegations as published on the ASIC website:

  • threaten them with fraud charges and imprisonment if they failed to make payments;
  • threaten to contact friends, family, work colleagues and landlords if debtors failed to contact A&M Group;
  • falsely claim that creditors were in the process of terminating the debtors' debt agreements and were considering legal action;
  • falsely claim that, if their debt agreement was terminated and they were forced into bankruptcy, the debtors’ finances would be examined to determine if they had been able to make payments under their debt agreement; and/or
  • falsely claim that if creditors obtained a garnishee order against the debtor, the creditors would be entitled to take 80% of the debtor’s income.
 

Former Healthcare Professional Gregory Campbell has been sentenced the 12 months imprisonment  for insider trading.

The Australian Securities and Investment Commission highlighted that at the time of the offence was the National Development and construction Manager at Health Care Australia while also being member of team.
 
ASIC Deputy Chair Sarah Court said in an official statement, “As a member of the executive team, Mr Campbell had access to privileged and market sensitive information. Mr Campbell traded while in possession of this inside information which gave him an unfair advantage.”




 
Former Director Colin Zampoatti has been charged with breaching directors’ duties by the failing the tell the liquidators about the ’particulars’ of a pre-existing lease and after placing his company into liquidation he continued to invoice and collect rental income.

Dongfeng Modern Agriculture Holding Gorup was fined $300, 000 for failing to meet its reporting obligations.

The Australian Securities and Investments Commission (ASIC) alleges that the company failed to the lodge an annual report for the financial year ending in December 2019,  failed to hold general annual meeting  that same year between June and July and failed to maintain the post of the company secretary and three directors for the same the period.




 
The Australian Securities and Investments Commission (ASIC) filed a contempt application against the former director James Mawhinney for failing to comply with the Federal Court order to stop raising funds through financial products for 20 years.
The Regulator is also going to bring action  against the former director the company Eleutha Entities for misleading representations and engaging in misleading or deceptive conduct by carrying out financial services business without holding a financial licence.