On February 16, 2012 Australian Securities and Investment Commission (ASIC) published that three former directors of national whitegoods distributor Kleenmaid faced court today accused of 20 criminal charges including a $13 million fraud and insolvent trading, following an ASIC investigation. Andrew Eric Young, Bradley Wendell Young and Gary Colleyer Armstrong appeared before Magistrate Ehrick at Maroochydore Magistrates Court for their first appearance. The trio have been charged with 18 counts of criminal insolvent trading of debts totalling more than $4 million and a $13 million fraud committed on Westpac Bank. Gary Armstrong and Andrew Eric Young have also been charged with further fraud, accused of withdrawing $330,000 from the company’s bank accounts two days before it went into voluntary administration.

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On February 14, 2012 Australian Securities and Investment Commission (ASIC) published that Mr Craig Gerard Dangar has today appeared before the Downing Centre Local Court in relation to two counts of obtaining money by deception and one count of making a false or misleading statement in a document lodged with ASIC. The charges follow an investigation by ASIC into Mr Dangar’s conduct while he was employed by SMSF Consultants Pty Ltd (SMSF), an accounting practice located in Sutherland, New South Wales. Mr Dangar provided technical superannuation advice to trustees of self-managed superannuation funds as well as compliance advice to other accounting firms. Mr Dangar was employed by SMSF between January 2004 and September 2007.

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On February 13, 2012, Hong Kong Securities & Futures Commission (SFC) published that commission has revoked the licence of Mr Paco Ng Kar Lun, and prohibited Ng and Mr Adrian Fong Wai Lap from re-entering the industry for 10 and three years, respectively, from 11 February 2012 (Notes 1, 2 and 3). These decisions follow an SFC investigation into transactions conducted by Ng and Fong in relation to allegations they were involved in trading overpriced shares of Metallurgical Corporation of China Limited (MCC) in the grey market prior to its listing on the Stock Exchange of Hong Kong on 24 September 2009.

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On February 10, 2012 Australian Securities and Investment Commission (ASIC) published that the commission has accepted an enforceable undertaking (EU) from the auditor of the failed Astarra Strategic Fund not to act as a registered company auditor for three years. Albury auditor Timothy Frazer of WHK Audit & Risk Assessment audited the 2008 financial report of Alpha Strategic Fund and the 2009 financial report of Astarra Strategic Fund (ASF). ASIC was concerned during these audits Mr Frazer failed to perform adequately and properly the duties of an auditor and failed to ensure each audit was planned and performed with an attitude of professional scepticism.

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On January 18, 2012 Securities and Exchange Board of India (SEBI) published that the board had conducted investigation into the dealings in the scrip of T. Spiritual World Limited for the period of January 01, 2003 to July 11, 2003. During the period of investigation, the scrip of TSWL was listed at the Bombay Stock Exchange and Calcutta Stock Exchange The trading details of different persons in the scrip of TSWL were collected and analyzed along with the data of the volumes contributed. During the period of investigation, the price of the scrip was in the range of `175 to `183.50. The total market volume during the investigation period was around 4,28,408 shares. The daily traded volume was around 2,000 shares except on March 25, 2003, March 26, 2007 and April 15, 2003 when the volumes in the scrip were substantial.

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On January 25, 2012 Securities and Exchange Board of India (SEBI) published that the Board had conducted an investigation into the buying, selling and dealing in the shares of M/s Cyberspace Ltd. on observing unusual movement in the price and volume of the scrip of Cyberspace in the period October 1999 to March 2001. Investigations revealed that the price of the Cyberspace scrip had gone up substantially in the period from October, 1999 to March, 2001, and thereafter started attracting large volumes from September 2000/October 2000 till March 2001.

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On January 25, 2012 Securities and Exchange Board of India (SEBI) published that authority had restrained Mr. Shailesh S. Jhaveri and Ms. Harsha M. Shah for a period of two years from the securities market, vide its order dated November 13, 2007 under Section 11B of the Securities and Exchange Board of India Act, 1992 for their involvement in the market manipulation during the preferential allotment in the scrip of Ojas Technochem Products Limited, in violation of the provisions of Regulation 4(b) and (d) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 1995.

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On February 06, 2012, Hong Kong Securities & Futures Commission (SFC) published that a former broker Mr Chan Yuk Hing, who pleaded guilty to a charge of false trading on 26 January 2012, today applied to the Magistrates’ Court to reverse his plea. The application was granted by the Magistrate Mr Symon Wong Yu-wing (Note 1). Chan was released on bail. A pre-trial review for the case of Chan and his client, who pleaded not guilty to a charge of false trading on the same day, will be heard on 1 March 2012 (Note 2).

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On February 03, 2012, Hong Kong Securities & Futures Commission (SFC) published that the Court of First Instance today allowed the appeal of former responsible officer of Guotai Junan Securities (Hong Kong) Limited, Mr Pan Ming and overturned his conviction for one offence of false trading under the Securities and Futures Ordinance. On 1 March 2011, Pan was convicted of one count of market manipulation following an investigation by the Securities and Futures Commission (SFC) and was sentenced to a five months of imprisonment (Note 1). Pan appealed against his conviction to the Court of First Instance. The Court will publish its reasons in due course (Note 2).

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On February 01, 2012 Australian Securities and Investment Commission (ASIC) published that the commission has accepted an enforceable undertaking (EU) from the former operator of the ARP Growth Fund (ARP) permanently preventing him from working in the Australian financial services industry or managing a corporation. Tony Maher, who changed his name from Paul Gresham, entered into the undertaking after an ASIC investigation found, among other things, he engaged in misleading conduct and failed to disclose conflicts of interest, resulting in him gaining financial benefits from various financial deals. Mr Maher owned and controlled PST Management Pty Limited (PSTM), the company that acted as the investment manager of ARP. ARP was a managed investment scheme run by failed fund manager Trio Capital Limited (Trio). In this role he identified and recommended investments for ARP and its predecessor Professional Pensions Pooled Superannuation Trust (PPPST).

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On January 30, 2012, Hong Kong Securities & Futures Commission (SFC) published that the Eastern Magistracy today convicted a futures trader, Mr Tsoi Bun, after a retrial of five charges of manipulating the calculated opening prices (COP) of index futures contracts in the futures market following his acquittal two years ago (Note 1). Tsoi was sentenced to six months imprisonment to be suspended for two years; fined $500,000 and ordered to pay the Securities and Futures Commission (SFC)’s investigation costs. The retrial was ordered by the Court of First Instance following an application by the SFC for a review of the acquittal by the Eastern Magistracy in January 2010 (Note 2).

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On January 30, 2012 Australian Securities and Investment Commission (ASIC) published that the commission has permanently banned a former South Australian company director from providing financial services after he dishonestly obtained more than $400,000 from clients over a two-year period. The action against Craig John Horsell, of Adelaide, follows an ASIC investigation into his time as an employee and a director of insurance businesses Horsell International Pty Ltd (HIPL) and PSC Horsell Insurance Brokers Pty Ltd (PHIB) between 22 January 2007 and 23 July 2010. ASIC’s investigation found that between 7 September 2007 and 4 May 2010 Mr Horsell acted dishonestly and in breach of financial services laws when he authorised the transfers of 72 insurance premium payments from clients totalling $409,635.24 into his bank account but did not purchase the insurance products as requested by the clients.

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On January 30, 2012 Australian Securities and Investment Commission (ASIC) published that a former director has been convicted of three counts of stealing more than $200,000, after which he used the money to pay off personal debts including his wife’s credit card. Peter Robin Hickey of Cloverdale, Western Australia, was convicted following the conclusion last week of a 5 day jury trial in the Perth District Court before Judge Michael Bowden. During the trial ASIC alleged Mr Hickey, 57, stole $230,000 between 14 April and 8 July 2005. ASIC alleged that the funds were received from investors and disposed of through Cape Bonbon Pty Ltd, a company of which Mr Hickey was a director. It was alleged Mr Hickey then used the money to pay for items including personal expenses such as mortgages and credit cards.

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Hong Kong Securities & Futures Commission (SFC) published that the a licensed broker Mr Chan Yuk Hing was convicted on January 26, 2012, on of one charge of false trading after he pleaded guilty at the Eastern Magistrates’ Court (Note 1). Magistrate Mr Symon Wong Yu-wing remanded Chan in custody for sentencing on 13 February 2012. The charge relates to trading in shares of Multifield International Holdings Limited on 23 November 2009 and allegations that Chan was involved in fixing a price that was 300% higher than the prevailing market price on the same day.

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On January 18, 20112 Australian Securities and Investment Commission (ASIC) published that the commission has accepted an enforceable undertaking (EU) from Sydney liquidator, Mr Peter Ngan, which prevents him from practising as a registered liquidator for the next two-and-a-half years. Following an ASIC review of 24 external administrations which Mr Ngan managed as sole appointee at his firm, Ngan & Co, ASIC found Mr Ngan, who is also an official liquidator, failed to carry out or properly perform his duties. ASIC Deputy Chairman Belinda Gibson said the matter was detected through ASIC’s proactive liquidator compliance program which has been tasked to identify issues with practitioners in the industry for further investigation and appropriate enforcement action as required.

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