ASIC has charged two men for carrying on a financial services business without holding an Australian Financial Services Licence. Mr Barry John Patrick of Frankston, Victoria was charged on three counts with carrying on a financial services business and one count of providing financial advice without holding an Australian Financial Services Licence (AFSL), following an investigation by ASIC.
The charges relate to Mr Patrick’s alleged involvement with carrying on a financial services business without an AFSL in the following entities: Casey Business Finance; Cardinia Specialised Securities Ltd; and Borocco Investment Services.
Mr Karl Heinz Veljkovic of Beaconsfield, Victoria has been charged on one count with carrying on a financial service business without holding an AFSL in relation to Casey Business Finance.
ASIC alleges that between 1 August 2003 and 31 December 2006 Mr Patrick and Mr Veljkovic induced approximately 40 investors to invest in property development schemes. E.K.B Properties raised approximately $4 million, Sandgrove Specialised Securities Ltd raised approximately $1.5 million and Cardinia Specialised Securities Ltd raised approximately $1 million.
Mr Patrick is also charged with three counts of managing a corporation while disqualified under section 206A of the Corporations Act. ASIC allege Mr Patrick who was disqualified from managing corporations made or participated in the making of decisions that affected the whole, or a substantial part of, the business of E.K.B Properties Pty Ltd, Sandgrove Specialised Securities Ltd and Cardinia Specialised Securities Ltd.
Mr Veljkovic and Mr Patrick appeared in the Melbourne Magistrates Court today. The matter is next listed for a Contest Mention on July 15 2010.
The matter is being prosecuted by the Commonwealth Director of Public Prosecutions.
Background: In February 2007, following an ASIC application, the Federal Court appointed Simon Wallace-Smith and Timothy Bryce Norman of Deloitte as liquidators to E.K.B Properties Pty Ltd, Sandgrove Specialised Securities Ltd and Cardinia Specialised Securities Ltd, entities controlled and/or managed by Mr Patrick and Mr Veljkovic.
Mr Veljkovic and Mr Patrick also consented to Federal Court orders banning them from: carrying on a financial services business; parting with any funds that have come into his possession by issuing, selling or offering a financial product; and managing corporations for a period of 20 years.
Released by ASIC on Monday 24 May 2010
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