SMSF trustee prosecuted under SIS Act
A Sydney man who operated a self-managed superannuation fund (SMSF) has fallen foul of the Australian Securities and Investments Commission (ASIC) and has faced proceedings in Sydney Downing Centre Local Court on charges brought under the Superannuation Industry (Supervision) Act (SIS Act).
It represents the first charge brought against a SMSF trustee under the SIS Act.
The man, Atan Ona Kassongo, of Sydney suburb Castle Hill, is charged with dishonestly failing to ensure a self-managed fund known as the Kassongo Superannuation Fund was maintained in accordance with the sole purpose test while trustee of the fund.
ASIC said the charge followed an investigation conducted with the assistance of the Australian Taxation Office.
The regulator is alleging that the preserved superannuation benefits of 192 superannuants totalling $4,055,043 were deposited into the bank accounts of the Kassongo Superannuation Fund and were rolled over from 56 complying superannuation funds.
ASIC alleges that Kassongo then used the fund to obtain early access to these benefits by withdrawing and distributing the funds to the superannuants and agents engaged by him to assist in the early release scheme. It said that Kassongo retained over $600,000 for himself by way of a commission.
ASIC has also alleged that, at the time the Kassongo Superannuation Fund received the superannuation benefits from the complying superannuation funds, Kassongo was aware that he had an obligation to preserve the benefits until the superannuants had satisfied the condition of release but had no intention of doing so.
The regulator said that in January last year, it had initiated civil proceedings against Kassongo following allegations he was involved in the operation of an unlicensed financial services business offering people early access to their superannuation funds.
AUTHOR
Mike Taylor
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