01/420g ASIC annual report: Tasmania
Thursday 29 November 2001
The Tasmanian office of the Australian Securities and Investments Commission (ASIC) had a productive year in enforcing the Corporations Act and protecting investors, as demonstrated by the 2000/2001 Annual Report tabled in Federal Parliament yesterday.
During the past 12 months the Tasmanian office has focused its efforts on the protection of investors and consumers through strong enforcement actions.
Solicitors mortgage investment funds
The Tasmanian office has played a significant role in ASIC's national investigation into the operation of Solicitors Mortgage Investment Funds (SMIFs).
Enforcement action undertaken to date has included administrative, civil and criminal proceedings and has resulted in compensation being paid to many Tasmanian investors.
In June 2001 ASIC accepted an enforceable undertaking from Garrisons, a Tasmanian-based securities dealer, that required them to return approximately $3 million in full and pay interest of 6 per cent per annum as compensation for investors who had invested in SMIFs on their advice.
ASIC also required Garrisons to conduct an independent review of their compliance systems, and imposed a conditional ban on Mark John Hudson, an authorised representative of Garrisons, in relation to his recommendations to place a number of investors into SMIFs.
ASIC's work in this area is ongoing.
Other action to protect investors and creditors
Robert Anthony Wallis and Robert Hugh Iddon, both of Ulverstone, were prevented by ASIC from promoting an illegal international investment scheme. The scheme had raised more than $620,000 from investors by promising returns of up to 100 per cent a year. The two promoters agreed to seek funds be returned to investors.
Creditors of the failed Tasmanian company AH No 2 Pty Ltd received more than $165,000 following an application by ASIC against two former directors of the company.
Other enforcement results
Joachim Prehn, a former insurance agent and financial adviser who operated from Burnie, was committed for trial on 33 counts of fraudulent conduct involving over $1.5 million. This matter is still before the courts. ASIC also permanently banned Mr Prehn from acting as a representative of a securities dealer or investment adviser.
Christopher Martyn Matson, a former Launceston financial adviser, was sentenced to 12 months imprisonment after pleading guilty to ASIC charges of fraudulently inducing a national fund manager to deal in securities involving nearly $60,000 of clients' money. Civil action taken by ASIC resulted in investors receiving back a substantial amount of their investment.
Leon Gregory Kaine, formerly of Penguin in Tasmania, was committed to stand trial in the Supreme Court on 19 ASIC fraud charges involving nearly $90,000. Mr Kaine has pleaded not guilty to the charges. Mr Kaine also received a three months suspended jail sentence after pleading guilty to charges that he made false or misleading statements about a forged deposit slip shown to him during an ASIC investigation.
Anthony Wayne Seymour, a Launceston businessman, appeared in court charged with being knowingly involved in the operation of an unregistered managed investment scheme operated by Forest Enterprises Australia Ltd. The scheme raised approximately $6.8 million from 116 investors. This matter is still before the courts.
Stakeholder information and liaison
The Tasmanian office continued to provide information and assistance to business and consumers through public education activities, presentations and seminars. Of particular importance this year was the round of seminars conducted in Hobart, Launceston and Burnie dealing with the Financial Services Reform Bill. The Bill will have a wide-ranging impact on both providers and consumers of financial services, and ensuring the smooth implementation of the Bill will be a continuing focus for the Tasmanian office in the coming year.
ASIC's Tasmanian Liaison Committee, comprised of Tasmanian business people and professional advisers, was expanded to better cover the whole of the State. The Committee continued to provide valuable feedback and assistance to ASIC during the year.
Comments from the Regional Commissioner
The Tasmanian ASIC office continues to play an important role in enforcement, regulation and protection of the financial and corporate sectors in Tasmania.
‘Through a variety of administrative, civil and criminal remedies ASIC has acted to help ensure that providers of financial services act honestly, in accordance with the law. This ensures that consumers of financial services - investors, superannuants, insurance policy holders and depositors - receive good advice and are protected from misconduct.
‘ASIC will continue to give priority to ensuring that consumers of financial products and services receive high standard advice and are protected from those in the industry that either do not meet the required standards of professional competence or are dishonest in their dealing with clients’, Mr Dwyer said.
For further information contact:
| Simon Dwyer Regional Commissioner Telephone: 03 6235 6810 Mobile: 0418 299 097 |
ASIC Media Unit Telephone: 02 9911 2600 Mobile: 0412 673 038 |
End of release