Theta AM to pay $2m penalty
Liquidated Theta Asset Management and its managing director Robert Marie has been found to have contravened the Corporations Act by issuing five defective product disclosure statements (PDSs) for the Sterling Income Trust.
The Federal Court in Western Australia ordered Theta to pay a penalty of $2 million and Marie to pay a penalty of $100,000. The Australian Securities and Investments Commission (ASIC) said it would not seek recovery of the penalty against Theta as doing so would decrease the funds available for distribution by the liquidator of Theta to its creditors.
Marie was also disqualified for four years from managing corporations after contravening the Corporations Act and failing to comply with duties as a managing director of Theta.
In handing down his judgement Justice McKerracher said the circumstances “involved catastrophic losses sustained by investors”.
Between 20 May, 2016, to 30 April, 2018, $16,749,974 was raised from retail investors pursuant to the defective PDSs.
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