Former Keystone director sees company assets frozen
A judge has frozen the assets of former Keystone director Paul Chiodo’s company and ruled in ASIC’s favour that administrators can be appointed to wind up the firm.
In Federal Court on 5 September, the judge ordered a “freezing order” be made against Chiodo Corporation.
This prevents the disposing of, dealing with, or diminishing the value of funds held in two Westpac bank accounts of Chiodo Corporation.
Any payments above the value of $10,000 must receive the consent of Jason Tracy and Lucica Palaghia of Deloitte Financial Advisory who have been appointed as receivers of Keystone Asset Management.
A report must be made on the first and third Friday of each month of all payments paid in the previous fortnight.
The only payments allowed to be made are those in the proper and ordinary course of business, including paying business expenses and reasonable legal expenses.
Failure to abide by these measures leaves the individual Paul Chiodo liable to imprisonment, sequestration of property, or other punishment.
ASIC had previously obtained interim orders from the Federal Court in June freezing the assets of the Shield Master Fund (SMF), a registered managed fund whose responsible entity is Keystone Asset Management.
A second matter heard by the court related to the wind-up of Keystone which ran the SMF.
In August, the Federal Court appointed Tracy and Palaghia of Deloitte as receivers of the property of Keystone Asset Management.
On 30 August, ASIC filed an application seeking orders that this voluntary administration end, and that Tracy and Palaghia be appointed as provisional liquidators instead. Alternatively, Scott Langdon, John Mouawad and Michael Korda of KordaMentha, who have been appointed as voluntary administrators of Keystone, should be replaced by Tracy and Palaghia.
In Federal Court on 5 September, Justice Moshinsky ruled that Tracy and Palaghia could be appointed as administrators of Keystone.
AUTHOR
Laura Dew
Recommended for you
Sequoia Financial Group has announced it is selling off its Informed Investor subsidiary which it acquired in April 2022.
Wealth Data has examined which advice business model has seen the most growth since the start of the year including those that offer holistic advice.
Research conducted by Elixir Consulting and Lonsec has quantified the efficiency gains of using managed accounts in financial advice practices in hours per week saved.
With only one-quarter of advice practices actively seeking feedback from clients, the Financial Advice Association Australia has emphasised why this is a critical tool for client retention.
