ASIC charges two men for operating without AFSL
Two Victorian men have been charged with carrying on a financial services business without a licence, following an investigation by the Australian Securities and Investments Commission (ASIC).
Barry John Patrick of Frankston faces three counts of carrying on a financial services business without an Australian Financial Services Licence (AFSL) in relation to his involvement with Casey Business Finance, Cardinia Specialised Securities and Borocco Investment Services.
Karl Heinz Veljkovic of Beaconsfield has also been charged with one count of carrying on a financial services business without an AFSL in relation to his involvement with Casey Business Finance.
ASIC alleged that the pair induced about 40 investors to invest approximately $6.5 million in property development schemes between 1 August, 2003 and 31 December, 2006.
E.K.B Properties raised about $4 million, Sandgrove Specialised Securities raised $1.5 million while Cardinia Specialised Securities raised about $1 million.
Patrick has also been charged with three counts of managing a corporation while disqualified, with ASIC alleging that Patrick made decisions that affected a substantial part of E.K.B Properties, Sandgrove and Cardinia while he was disqualified.
The matter is being prosecuted by the Commonwealth Director of Public Prosecutions in the Melbourne Magistrates Court and is next listed for a Contest Mention on 15 July, 2010.
ASIC has previously reported investigating the two men in 2006.
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