Pacific Blue Securities to be wound up, Fogarty to face further investigation
The Federal Court of Australia in Melbourne has ordered that Pacific Blue Securities be wound up and limitations placed on its sole director, Sean Fogarty, pending further action by the liquidator and investors.
It was alleged that Fogarty was dealing in financial products without a licence and that investors’ money was not utilised for the purposes of trading.
“We believe that in excess of $400,000 has been invested with Pacific Blue Securities by around 40 investors,” the Australian Securities and Investments Commission (ASIC) stated, adding that it commenced proceedings in September 2009 following complaints that the returns on investments were not honoured.
The court ordered that Fogarty be restrained from carrying on or being knowingly concerned in the carrying on by another person of any business of dealing in financial products for 10 years, unless he holds or is the authorised representative of the holder of an Australian Financial Services Licence.
He is prohibited from taking or sending out of Australia any money, financial products or other property of Pacific Blue Securities or himself for a period of six months. He is also prohibited from leaving Australia without the consent of the Court.
ASIC submitted that these orders were necessary to enable the liquidator, Robyn Erskine of Brook Bird, or the investors to take further action against Fogarty.
ASIC is continuing its own investigations.
AUTHOR
Caroline Munro
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