This week in Penalties: Or the Cost of Non-Compliance

 
 
Former Insurance Broker Alliance Management Group Renato De Maria has to pay a $ 35 million penalty for misusing client funds between July 2016 and April  2021. 
 
Allegations as listed on the ASIC website:

• authorising three withdrawals totalling $7.9 million which were ultimately transferred back to Mr De Maria via a third party and thereby contravening s184(2) of the Corporations Act;
• issuing inflated insurance invoices totalling over $4 million to four separate clients and thereby contravening ss1041G of the Act; and
• transferring over $24 million between an AIBS trust account and other accounts controlled by Mr De Maria and thereby contravening s184(2) of the Act.

 

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Former Director for Reiwa-Capital Russell Sandiford was charged with dishonest conduct by misusing clients' funds between January 2020  and  June 2022. 
 

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Former Director James Soong won’t be able to manage corporations for five years for his involvement in two failed companies. 
ASIC listed its allegations against the former director:

• meet statutory lodgement requirements with the Australian Taxation Office (ATO);
• pay statutory entitlements to ATO as well as State agencies for payroll tax and workers’ compensation insurance; and
• keep proper financial records.

 

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Former Director Roxanne Cornell will not be able to manage corporations for five years for her involvement with three failed companies between November 2015 and February 2020.
 
ASIC listed its allegations against its former director:

• engaged in phoenix activity by continuing to transfer and operate the business in new entities to sustain a loss-making business and to avoid paying creditors; 
• authorised the purchase of Coconut Group, which appeared to be unprofitable, by Coconut Post Tensioning; 
• made payments to herself and third parties for an improper purpose for the benefit of her and the third parties, and to the detriment of Coconut Post Tensioning and Coconut Group; 
• engaged in conduct that resulted in hindering or obstructing the liquidators of Coconut Post Tensioning to obtain the books of the Company; 
• failed to respond to requests by the liquidator seeking information regarding Coconut Post Tensioning; and 
• failed to prevent Coconut Post Tensioning and Coconut Group from trading whilst insolvent.