The Supreme Court of New South Wales made the orders following civil proceedings brought by the Australian Securities and Investments Commission (ASIC). The Court found that Mr Anthony, of Wollongong in NSW and also a resident of the Philippines, and Mr Lloyd-Cocks of Darling Point, NSW, contravened numerous provisions of the Corporations Act 2001 (the Act), relating to their roles as directors of AIF and related companies.
The Court found that the conduct of Mr Anthony and Mr Lloyd-Cocks fell into the worst category of conduct and that they should never again be allowed to manage corporations as the risk to the public was too great.
‘The community expects and deserves directors who act honestly and with integrity and we will not shy away from pursuing those directors that pose a threat to the investing public’, ASIC’s Executive Director, Enforcement, Ms Jan Redfern said.
ASIC commenced proceedings against AIF and related companies in October 2001, following concerns that AIF had offered securities without a disclosure document and that its directors had breached their duties to AIF, and to the related companies.
AIF was a licensed securities dealer which ran an investment club, offering members placements in new company floats. Between the commencement of AIF’s business in May 1999 and October 2001, AIF received approximately $7.8 million in ‘membership fees’, corporate finance fees or subscriptions for its own shares or shares in initial public offerings (IPOs). Of that sum, approximately $3.2 million was paid to companies controlled by Mr Anthony, Mr Lloyd-Cocks, and another director, Mr Dominic Luvara. Included in this sum were amounts totalling $2.708 million, paid to a Panamanian company controlled by Mr Anthony.
AIF was wound up by the Court in August 2002, and Mr Alex MacIntosh was appointed liquidator. Twelve other related companies were subsequently wound up or deregistered.
On 4 April 2005 the Court found that Mr Anthony and Mr Lloyd-Cocks:
