Action initiated by the Australian Securities and Investments Commission (ASIC) has led to liquidators being appointed to three Victorian companies, which allegedly misused superannuation funds amounting to around $2.5 million.
The Federal Court in Melbourne has appointed liquidators to E.K.B. Properties Ltd, Sandgrove Specialised Securities Ltd and Cardinia Specialised Securities Ltd.
ASIC said it sought the orders following concerns the funds invested by clients totalling at last $2.5 million were at risk and may have been lost.
The regulator said it had sought the appointment of liquidators to ensure the best interests of investors and creditors were considered independently.
ASIC said it had also obtained consent orders against two men — Barry John Patrick, of Pakenham, and Karl Heinz Hermann Veljkovic, of Beaconsfield, banning them from carrying on a financial services business, parting with any funds that have come into their possession by them issuing, selling or offering a financial product, and from managing corporations.
The regulator sought to have Patrick and Veljkovic banned for 20 years, with Patrick consenting to the 20-year banning period, while Veljkovic agreed to an interlocutory injunction in those terms pending the outcome of the court action against him.
ASIC is alleging that between May 2003 and January 2006, the two men advised investors to roll over their superannuation into self-managed funds and then invest those funds in companies either operated by or associated with them, including those to which liquidators have been appointed.
