On May 15, 2012 Australian Securities and Investment Commission (ASIC) published that it has applied to the Federal Court in Melbourne to inquire into the conduct of Melbourne liquidator, Mr Andrew Leonard Dunner, concerning the performance of his duties as a registered and official liquidator and as a receiver or manager of a total of eleven companies to which he has been appointed. ASIC is seeking orders that Mr Dunner be prohibited from holding the office of liquidator, provisional liquidator, voluntary administrator or administrator of a deed of company arrangement for such period as the Court sees fit, or alternatively, to declare there are grounds for the cancellation of Mr Dunner’s registration as an official liquidator.

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On May 15, 2012 Hong Kong Securities & Futures Commission (SFC) published that the commission applied for a review of the sentence imposed on futures manipulator, Mr Tsoi Bun, following his conviction on five charges of manipulating the calculated opening prices of index futures contracts in the futures market (Note 1). On 30 January 2012, the Eastern Magistracy sentenced Tsoi to six months imprisonment to be suspended for two years, fined him $500,000 and ordered him to pay the SFC’s investigation costs. The SFC sought a review of the sentence because the fine was substantially less than the $949,350 in profit earned by Tsoi in committing the manipulation offences for which he was convicted.

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On May 14, 2012 Hong Kong Securities & Futures Commission (SFC) published that the Court of First Instance has varied the sentence imposed on Mr Lo Kam Chung for carrying on an unlicensed business of advising on securities. Lo was convicted on one count of carrying on an unlicensed securities business between April and November 2010. The court found that Lo established a private discussion group on Facebook in the name of “Peter Sun” and offered securities advice to subscribers who paid fees of $200-$300 per month. He was fined $20,000 and sentenced to 80 hours of community service to be completed within 12 months (Note 1). He appealed his sentence and the Court of First Instance last Friday varied the fine by reducing it to $10,000 but upheld the community service order (Note 2).

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On May 08, 2012 Hong Kong Securities & Futures Commission (SFC) published that it has banned Mr Wong Chiu Wan, a former licensed representative of KGI Asia Limited (KGI), from re-entering the industry for life (Note 1). The disciplinary action follows an SFC investigation which found that, between April and June 2011, Wong conducted unauthorized trades in a client’s securities account at KGI and sold the client’s shares without the consent or instruction of that client. In an attempt to conceal his dishonest acts, Wong also forged the client’s signature to falsify an instruction to amend the client’s e-mail address on KGI’s records in order to prevent the client from receiving trading statements from KGI.

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On May 07, 2012 Australian Securities and Investment Commission (ASIC) published that the two former directors of companies associated with the Dollarforce group, which was involved in property development, have been committed in the Melbourne Magistrates Court to stand trial at the County Court of Victoria, following a contested committal lasting almost three weeks. Mr Clestus Weerappah, 47, of Oakleigh, Victoria, the director of Dollarforce Financial Services Pty Ltd (in liquidation), will face a total of 56 charges. He was conditionally bailed to appear at the County Court on 12 July 2012. Mr James Stephen Lewis, 52, of Camberwell, Victoria, an accountant and former director of Altitude Property Limited (APL) (in liquidation), was committed to face trial on five charges, after he was initially charged with four offences. Mr Lewis was also conditionally bailed to appear at the County Court on 12 July 2012.

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On May 04, 2012 Australian Securities and Investment Commission (ASIC) published that Mr Clinton Edward Condon, of Paradise Waters, Gold Coast, Queensland was today sentenced in the County Court of Victoria on charges brought by ASIC. Mr Condon was convicted and sentenced to two years imprisonment, fully suspended, after pleading guilty to two charges, under the Victorian Crimes Act, of obtaining a financial advantage by deception. Mr Condon was also convicted and released immediately on entering into a recognisance in the sum of $1,000 to be of good behaviour for 18 months. This followed his plea of guilty to one charge, under the Corporations Act, of making available false or misleading information to Bustan’s auditors.

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On April 30, 2012 Australian Securities and Investment Commission (ASIC) published that it has banned another former Commonwealth Financial Planning Limited (CFPL) adviser from providing financial services for three years after an ASIC investigation found she had failed in her responsibilities while providing financial product advice. Jane Duncan, of Washpool, Queensland, was employed as a financial planner with CFPL between 4 February 2008 to 27 January 2010.

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On April 30, 2012 Australian Securities and Investment Commission (ASIC) published that it has permanently banned Mr Anthony Awkar of Merrylands, New South Wales, from providing financial services after it was found that he forged the signatures of four of his clients. Mr Awkar was employed by Commonwealth Financial Planning Limited (CFPL) as a financial adviser and authorised representative from May 2008 until his resignation in June 2010. During Mr Awkar’s employment, he was ranked as one of CFPL’s top financial advisers. Mr Awkar’s banning brings to five the number of actions that ASIC has taken against former CFPL employees. CFPL is a wholly owned subsidiary of the Commonwealth Bank of Australia (CBA) and operates under the advice structure of Colonial First State, which is also part of the CBA.

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On April 26, 2012 Hong Kong Securities & Futures Commission (SFC) published that the Eastern Magistrates Court today fined seven investors a total of $71,000, ranging from $2,000 to $30,000 each, after they had pleaded guilty to 11 charges of illegal short selling shares of Imagi International Holdings Limited (Imagi) in May 2010. Acting Principal Magistrate Mr. David Dufton also ordered the defendants – Kung Ping Cheung, Chan Ki, Siu Kam Fung, Siu Kam Mei, Siu Hung Keung, Ma Siu Fan and Yau Ka Yiu – to pay the Securities and Futures Commission’s (SFC) investigation costs of $21,820. The SFC told the court that, on 7 May 2010 and/or 11 May 2010, the defendants placed various orders to sell 31,000 to 16,855,600 shares of Imagi when they did not and could not have reasonable grounds to believe that they had a presently exercisable and unconditional right to sell the shares, thus constituting illegal short selling.

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On April 25, 2012 Hong Kong Securities & Futures Commission (SFC) published that the court of First Instance today refused an application by Mr Chan Chun Wai, the director of Billion Global Asset Management Limited, for leave to appeal to the Court of Final Appeal. On 6 September 2011, Chan was convicted of two charges of holding out he was carrying on an asset management business and also issuing a related advertisement, both without a licence. Chan’s convictions were upheld by the Court of First Instance on 14 March 2012.

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On April 23, 2012 Australian Securities and Investment Commission (ASIC) published that it has permanently banned Mr Christos Papaioannou, also known as Chris Pappas, from providing financial services following his conviction on fraud charges in the Magistrates Court of Victoria. On 29 March 2012, Mr Papaioannou was convicted in the Magistrates Court of Victoria of four counts of obtaining money by deception and of one count of attempting to obtain money by deception. As a consequence, Mr Papaioannou was sentenced to prison for 15 months, wholly suspended for a period of 18 months.

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On April 23, 2012 Australian Securities and Investment Commission (ASIC) published that the commission’s action has resulted in Mr Neil William King, formerly of Brighton, Victoria, being removed from the financial services industry for six years. In proceedings brought by ASIC against Camelot Derivatives Pty Ltd (in liquidation) (Camelot) and Mr King, the Federal Court today found that: Camelot was established as a trading vehicle for Mr King; Mr King and Camelot made representations to the public, including at investment seminars, about high returns earned by Camelot clients trading in options; in fact, between January 2008 and December 2009, 50 Camelot clients lost over $2.47 million while paying commissions of over $2.45 million; and in 2010 sixteen Camelot clients lost $982,432 while paying commissions over $1.03 million.

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On April 23, 2012 Hong Kong Securities & Futures Commission (SFC) published that the Eastern Magistrates Court today set down the date for the trial of former senior executive of CITIC Pacific Limited (CITIC), Mr Simon Chui Wing Nin, whom the Securities and Futures Commission alleges committed insider dealing. The trial will start on 27 August 2012 and last for seven days. The SFC alleges Chui sold 81,000 shares of CITIC on 9 and 12 September 2008 whilst he knew confidential, price sensitive information about CITIC?s foreign exchange losses before they were disclosed to the market. He is alleged to have avoided a notional loss of about $1.36 million.

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On April 20, 2012 Australian Securities and Investment Commission (ASIC) published that it has permanently banned a former contracts for difference (CFD) dealer following an ASIC investigation. ASIC?s investigation focused on the conduct of Simon Marcus Gundry, of Mornington, and his online investment business SSG Trading during the period 1 January 2007 to 9 December 2010. It was found that although the business was deregistered on 28 April 2008, Mr Gundry continued to use the SSG Trading business name when he dealt with some of his 15 investors, inducing them to invest $835,168 through his trading platform.

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On April 20, 2012 Australian Securities and Investment Commission (ASIC) published that it has accepted an enforceable undertaking (EU) from Sydney-based auditor Graham Bruce Abbott after he breached auditor rotation requirements. Auditor rotation requirements in the Corporations Act stipulate that an auditor can?t audit a listed company for 5 successive years without a 2 year break. Auditor rotation is a key aspect of the independence provisions aimed at enhancing the reliability and credibility of financial reports.

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