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This Week In Penalties...

False document so the ASX

Eli Ekman has been banned from providing any financial service for five years for providing false information to the ASX between the period of 2015 and 2016.

ASIC said earlier this week that Ekman will also be paying a community benefit payment Ecstra Foundation Limited which is committed to improving financial literacy.

The Australian Securities and Investments Commission (ASIC) said that this the terms of the court enforceable undertaking.

The regulator said that this false information was used so that companies could meet the ‘minimum-spread’ requirement for admission and readmission to the ‘ASX official list.

“The fairness and efficiency of a securities market depends on investor trust in its rules. Investors make decisions to invest in securities on the basis of rules requiring a reasonable number of initial investors to promote an efficient and liquid market in the new entity’s securities,” ASIC Commissioner Cathie Amour said.

Director fraudulently removed cars

Earlier this week, ASIC alleged that the between September and October in 2016 John Featherstone, who was the sole director of Central Car and Truck Rental, remove cars belonging to the company that was valued up to $122, 000.

The matter has been adjourned until 13 November 2018.

Director Banned for Five Years Charles Clarke from Victoria has been banned from managing companies for up to five years. According to ASIC, the five companies of which Clarke has previously been director owe to creditors approximately 3.5 million.

According to ASIC the former director:

  • failed to prevent one of the companies from trading while possibly insolvent;

  • failed to pay tax and ensure that proper financial records were kept;

  • failed to exercise his duties as a director;

  • failed to comprehensively monitor company operations and financial position; and

  • engaged in phoenix activity by transferring the business of an indebted company to a new company leaving the initial company with no assets to pay creditors.

Misleading Representations by Ugg boot retailer

The Australian Competition and Consumer Commission (ACCC) said that the Ozwear Connection has paid $25, 200 in penalties after receiving two infringement letters from the competition regulator.

“Ozwear’s conduct is unacceptable. Under the Australian Consumer Law, businesses are prohibited from making claims that create a false impression about products being made in Australia,” ACCC Deputy Chair Mick Keogh said.

Not really made in Australia

The ACCC said that Birubi Art has made false and misleading representations about the about products being sold and made in Australia.

The regulator said that the between the period of July 2015 and the November 2017, Birubi scold 18, 000 boomerangs, bullroarers, digeridoos and message stones which were in fact made in Indonesia.

“It was unacceptable that Birubi sold Indonesian made products as having being hand painted by Australian Aboriginal persons when that was not the case,” ACCC Commissioner Sarah Court said.

The dates for the hearings are yet to be announced.

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