ASIC stops fraudster
A Victorian man who allegedly carried on a financial services business without holding an Australian Financial Services Licence has pleaded guilty to two charges following an Australian Securities and InvestmentsCommission (ASIC) investigation.
Anthony John Scott, 67, faced Melbourne’s County Court yesterday charged with dishonest conduct for his involvement in Homesafe Equities.
ASIC alleged that Scott played an integral role in the establishment and running of Homesafe, a company that issued builders warranty bonds in relation to 792 building projects throughout Victoria between June 2003 and March 2004. These projects had a potential value in excess of $100,000,000.
Homesafe claimed it was the manager of a ‘Captive Pool’ and that the insurance it provided, by way of bonds, was fully reinsured.
ASIC contended that, unknown to the builders who obtained the insurance certificates, there was no pool of money set aside to pay claims, and that full reinsurance was not in place in relation to any claims that might have been made.
Scott is scheduled to return to court for sentencing on November 19, 2007.
Recommended for you
Professional services group AZ NGA has made its first acquisition since announcing a $240 million strategic partnership with US manager Oaktree Capital Management in September.
As Insignia Financial looks to bolster its two financial advice businesses, Shadforth and Bridges, CEO Scott Hartley describes to Money Management how the firm will achieve these strategic growth plans.
Centrepoint Alliance says it is “just getting started” as it looks to drive growth via expanding all three streams of advisers within the business.
AFCA’s latest statistics have shed light on which of the major licensees recorded the most consumer complaints in the last financial year.
