Director penalised $1.25m over unregistered MIS
The Federal Court has found company director Sasha Hopkins guilty of operating unregistered managed investment schemes and carrying on a financial services business without holding an AFSL.
Hopkins was first pulled up by ASIC in June 2022, which saw his assets, The A Team Property Group, and Sash Investment Holdings frozen.
In July 2023, ASIC commenced civil action against Hopkins and The A Team Property Group, for alleged unlicensed conduct and for operating numerous unregistered managed investment schemes.
Handing down its judgment on 27 November 2024, the Federal Court ordered Hopkins to pay $1.25 million and that he be disqualified for four years. He was also ordered to pay $50,000 of ASIC’s costs.
Additionally, the court ordered that The A Team Property Group, of which Hopkins is the sole shareholder and director, be wound up alongside five of the investment schemes and associated companies.
Receivers will be appointed over the property of the schemes and related trusts associated with the schemes.
According to ASIC, Hopkins and The A Team Property Group promoted joint venture property developments on social media, such as Facebook, and offered fixed returns of 25 per cent to 50 per cent to be paid between 12 to 26 months.
Numerous investors were referred to third parties to establish self-managed superannuation funds (SMSFs) in order to invest in the schemes.
However, the court found that many of the 217 investors in the schemes were inexperienced in investing and believed that the funds they had invested were secure and, that returns would be significant.
The investor losses totalled approximately $27 million.
The court’s judgment is understood to be the first time a court has ordered a pecuniary penalty against an individual for a contravention of section 601ED of the Corporations Act. It is also the third highest civil penalty ordered against an individual in relation to a proceeding commenced by ASIC.
AUTHOR
Rhea Nath
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