Funds management director sentenced
The former director of a funds management company has been convicted of making false and misleading statements and placed on a two-year good behaviour bond, following an investigation by the corporate regulator.
Scott Tracy, a former director of deregistered company Endeavour Funds Management (Endeavour FML), pleaded guilty in the New South Wales District Court to two charges of obtaining a financial advantage by making false and misleading statements.
Tracy has also been disqualified from managing a company for five years.
The Australian Securities and Investments Commission (ASIC) alleged that between April 8 and April 24, 2004, Tracy made false and misleading statements to Macquarie International Capital Adviser about the trading history of Endeavour FML.
According to ASIC, the statements were made to ensure the company gained a funds manager’s role in the May 2004 prospectus issued by Macquarie Equinox Limited.
ASIC executive director of enforcement Jan Redfern said Tracy’s sentence highlighted that directors who acted fraudulently for their own financial benefit would be pursued.
“Making false statements with the intention of deliberately misleading others is a serious matter and directors should be mindful that such behaviour is illegal and offenders will be punished,” she said.
The Commonwealth Director of Public Prosecutions prosecuted the matter.
Recommended for you
Clime Investment Management has faced shareholder backlash around “unsatisfactory” financial results and is enacting cost reductions to return the business to profitability by Q1 2025.
Amid a growing appetite for alternatives, investment executives have shared questions advisers should consider when selecting a private markets product compared to their listed counterparts.
Chief executive Maria Lykouras is set to exit JBWere as the bank confirms it is “evolving” its operations for high-net-worth clients.
Bennelong Funds Management chief executive John Burke has told Money Management that the firm is seeking to invest in boutiques in two specific asset classes as it identifies gaps in its product range.
