AD08-03 Trustee of self managed super fund pleads guilty to ASIC charge
Tuesday 2 September 2008
Mr Atan Ona Kassongo, of Castle Hill, New South Wales, has pleaded guilty in the Downing Centre Local Court today in relation to a criminal charge brought by ASIC under the Superannuation Industry (Supervision) Act 1993 (the SIS Act).
On 5 August 2008, Mr Kassongo, 51, was charged with dishonestly failing to ensure a self-managed fund known as the Kassongo Superannuation Fund (KSF) was maintained in accordance with the sole purpose test. Mr Kassongo was trustee of the fund at the time of the alleged offence.
This criminal charge followed an investigation conducted with the assistance of the Australian Taxation Office and was the first to be laid against a trustee of a self-managed superannuation fund under the SIS Act.
ASIC alleged that the preserved superannuation benefits of 192 superannuants totalling $4,055,043 were deposited into the bank accounts of the KSF. These funds were rolled over from 56 complying superannuation funds. Mr Kassongo then allegedly used the KSF to obtain early access to these benefits by withdrawing and distributing the funds to the superannuants and agents engaged by him to assist in the early release scheme. Mr Kassongo retained over $600,000 for himself by way of a commission.
ASIC also alleged that, at the time the KSF received the superannuation benefits from the complying superannuation funds, Mr Kassongo was aware that he had an obligation to preserve these benefits until the superannuants had satisfied a condition of release but had no intention of doing so.
The matter will be heard in the Sydney District Court on Friday 12 September 2008.
The Commonwealth Director of Public Prosecutions is prosecuting the matter.
Background
On 4 January 2007, ASIC initiated civil proceedings against Mr Kassongo following allegations he was involved in the operation of an unlicensed financial services business offering people early access to their superannuation funds. On ASIC’s application, the Supreme Court of New South Wales made orders (by consent) preventing Mr Kassongo from providing financial services, dealing with or disposing of any assets on behalf of the Kassongo Superannuation Fund, and dealing with or disposing of any money he held except for the payment of ordinary living expenses and legal fees.
The Court also ordered that it retain and hold all passports issued to Mr Kassongo and restrained him from leaving Australia or coming within 10 metres of a point of departure.
Editor's note: On Friday 27 March 2009, Mr Kassongo appeared in the Sydney District Court and was given a date for sentencing of 8 May 2009.
ASIC Website: Printed 09/10/2010
