ASIC bans SA man for six years

A South Australian man has been banned by the Australian Securities and Investments Commission (ASIC) from providing financial services for six years on matters relating to the operation of a private mortgage investment business.

ASIC banned Jonathan Peter West of Athelstone, SA, following an investigation into the operation of a private mortgage investment business operated by West and John West & Associates Pty Ltd (JWA) at Payneham, SA.

West and JWA engaged in a scheme of borrowing money from members of the public to lend to others on the security of mortgages. It involved more than 60 investors, with loans and contributions totalling more than $15.2 million, according to ASIC.

ASIC found that between June 2003 and March 2007, the managed investment scheme was not registered and West ran a financial services business without holding an Australian Financial Services Licence.

It also found that West did not provide a Product Disclosure Statement in connection with making offers to retail clients to issue interests in the managed investment scheme and he made offers relating to the issue of interest in the scheme, or accepted offers from retail clients to acquire interests in the scheme, while the scheme wasn’t registered.

An ASIC statement said West intended to circumvent a restraining order made by the Supreme Court in March 2007 by continuing to solicit funds from investors in the scheme.

The banning of West follows proceedings brought by ASIC in the Supreme Court of SA on May 9, 2008, where it was declared that West and JWA had contravened certain provisions of the Corporations Act.