The Australian Prudential Regulation Authority (APRA) has succeeded in bringing charges against a superannuation fund trustee director and an accountant connected to the $3 million, 140 member Wall and Ceiling Superannuation Fund.
The charges, which will be prosecuted by the Commonwealth Director of Public Prosecutions, have been brought against Wayne Ridings, a former director of the trustee of the superannuation fund, and Paul Hullin, a partner in MV Anderson and Co, chartered accountants.
Ridings was committed to stand trial in the County Court in Melbourne on nine charges relating to his involvement in the affairs of the fund, while Hullin was committed to stand trial on six charges.
The charges arise from alleged breaches of the Superannuation Industry (Supervision) Act 1993 and relate to alleged contraventions of the sole purpose test and the making of allegedly false records with the intention of deceiving APRA.
In particular, APRA alleges that the fund was largely invested in unit trusts established to develop purpose-built factories that were subsequently leased back to employer-sponsors of the fund.
It is also alleged that records were falsified to support continued investment in the unit trusts despite legislative change designed to restrict such investments by superannuation funds.
Ridings pleaded not guilty in relation to all charges, while Hullin has not entered a plea.
Similar charges against a partner in MV Anderson and Co and a former approved auditor of the fund, Robert Elliot, were adjourned to June 26, 2006, while a charge against Melva Blackley, an employee of MV Anderson and Co, in relation to an allegation that she made a false record with the intention of deceiving APRA, was adjourned to June 26.
