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This week in Penalties...

Failure to lodge financial statements, breach of market integrity rules, imprisonment for dishonest conduct and breach director duties

Failing to lodge financial statements

The Australian Securities and Investments Commission (ASIC) said this week that Dampier Finance Australia has been fined $240,000. However, despite the conviction ASIC investigations into the company continue.

The corporate regulator indicated that the Sydney-based company was found guilty for not submitting annual financial reports with the regulator for 2012 and 2017.

The regulator said that for this same period the company failed to prepare, and lodge audited financial statements and balance sheets.

UBS pays penalty for breaching market rules

UBS Securities will pay 120,000 for breach of the ASIC Market Integrity Rules.

The Australian Securities and Investments Commission (ASIC) indicated that the payment of this penalty is in compliance with the infringement notice that was delivered by the Market Disciplinary Panel.

The regulator said that UBS purchased the 10 million securities over a seven-month period in the context of buybacks but reported to the ASX as ‘Trades with Price Improvements’.

The regulator indicated that the Trades in Price Improvements “…are not in the ordinary course of trading and are not permitted for on-market buy-backs.”

The regulator also states that the Market Disciplinary Panel (MDP) said that there was no gain by the company or loss to anyone else as result of these transactions. the panel said that they saw no intention to contravene the rules.

State One stockbroking to pay $500,000 for Market Integrity Rules Breach

The Australian Securities and Investments Commission (ASIC) said that State One Stockbroking Broking must pay up to 350,000 in penalties for breaching the Market Integrity Rules and the $150, 000 towards the regulator’s own legal fees.

The corporate regulator said that the court found that company bid on behalf on client who the company should have suspected had intention of making false and misleading appearance and did not maintain it resources to ensure that it complied with the Market Integrity Rules.

Imprisonment for Breaching Director Duties

Queensland-based director was sentenced twelve months’ imprisonment and then released on a $3000 good behaviour bond. the former director has also been banned from managing corporations for five years.

Former director of Metropolitan Design, Ronald Saunders between the period of April of 2015 to September 2015, told debtors of the company to direct payments to his personal account.

The Australian Securities and Investments Commission (ASIC) said that since then the company has been ‘placed in liquidation’ still owing the Australian Tax office $235,626.

ASIC said that the this means Saunders prevented money owed be paid to the ATO.

Imprisonment for Dishonest conduct

Former director of TZ Limited, John Falconer, has been to four and a half years in prison for giving false and misleading information to the ASX.

The Australian Securities and Investment Commission (ASIC) indicated that this ruling follows last year’s ruling another director for the same company who was given 10 years in imprisonment.

Falconer authorised ‘illegitimate payments’ from his former company’s accounts between the period December 2006 to September 2008 that totalled $6.25 million.

According to the Australian Securities and Investments Commission (ASIC) the former director pleaded guilty to:

  • four counts of using his position as a director dishonestly, with the intention of directly gaining an advantage for himself or others

  • one count of using his position as a director dishonestly, reckless as to whether the use may result in others directly gaining an advantage, and

  • one count of authorising or permitting the giving of information to the ASX relating to the affairs of TZ Limited, which he knew to be false or misleading.

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