Retirement
ASIC winds up companies behind SMSF scam
The corporate regulator has stepped in to wind up several companies that have scammed millions from SMSF investors.
ASIC winds up companies behind SMSF scam
The corporate regulator has stepped in to wind up several companies that have scammed millions from SMSF investors.
ASIC has successfully applied to the Federal Court to wind up two NSW-based companies, SA Services and Orphans Asia, after it was found that the businesses obtained nearly $10 million in financing when they held no authority to deal in financial products.
SA Services and Orphans Asia came to ASIC’s attention during the investigation into PW Kitt Co and its sole director Larry Dawson. Mr Dawson is a director of both PW Kitt Co and Orphans Asia.
“ASIC’s application was based on concerns that SA Services and Orphans Asia allegedly obtained approximately $2.4 million in Australian investor funds through cold-calling Australian consumers and operating the now-defunct website smsfadvisory.com,” ASIC said.
“Neither SA Services nor Orphans Asia is licensed or authorised to deal in financial products or provide financial services.”
ASIC said its investigation also identified that PW Kitt Co obtained over $7.4 million in Australian investor funds through allegedly cold-calling and operating the websites smsfadvisory.com and pwkittco.com.
PW Kitt Co held no licence or authority to deal in financial products or provide financial services.
The corporate regulator had submitted to the court that the defendants were using the same or substantially similar company and business names to an unrelated business, SMSF Advisory Services Pty Ltd and P.W. Kitt & Co.
“It is also alleged that the defendants used the Australian Financial Services Licence (AFSL) number of another company,” ASIC said.
“ASIC remains concerned that the defendants appear to have no connection with those businesses and hold no licence or authority to deal in financial products or provide financial services.”
At the regulator’s request, SA Services and Orphans Asia passed special resolutions resolving that their respective companies be wound up by the court.
ASIC has also obtained orders that Michael Hill and Anthony Connelly of McGrathNicol, the current liquidators of PW Kitt Co, be appointed as joint and several liquidators of SA Services and Orphans Asia.
ASIC has since successfully applied to the court to wind up and appoint liquidators to PW Kitt Co. ASIC’s action against Mr Dawson for breaching his duties as a director of PW Kitt Co has been adjourned pending the hearing and determination of a NSW Police criminal proceeding against Mr Dawson.
Self managed super fund
Investing in property using an SMSF isn’t as simple as it seems
There are plenty of good reasons to invest in property via an SMSF, but it pays to do your homework. ...Read more
Self managed super fund
SMSFs are shunning direct shares in favour of property – but is this a good idea?
For several years, SMSFs allocation to direct shares has been in decline. This trend accelerated after COVID. ...Read more
Self managed super fund
ATO issues draft legislative instrument for SMSF rollovers
The ATO has released a draft legislative instrument for consultation on the payment standard that will apply for SMSF rollovers and release authorities from 31 March 2021. ...Read more
Self managed super fund
Critical steps outlined with property transfers and trust cloning
While trust cloning can be an effective strategy for transferring an asset from a related trust to an SMSF without paying duty, it is vital the right steps are followed to avoid issues with the anti-a...Read more
Self managed super fund
Associations lobby government to ‘level the playing field’ with capital raisings
With SMSF and retail investors often missing out on ASX capital raisings, the SMSF Association and Stockbrokers and Financial Advisers Association have proposed a number of steps that could be taken...Read more
Self managed super fund
SMSF property spruiker sentenced in Brisbane District Court
A former Queensland property developer has been sentenced to five years’ imprisonment after being found guilty of six counts of fraud involving SMSF funds. ...Read more
Self managed super fund
COVID-19 reveals ‘flaws’ with account-based pensions
With the pandemic impacting the financial positions of many retirees, the inadequacy of account-based pensions has left many superannuation fund members exposed, according to a new research paper. ...Read more
Self managed super fund
Government pushed to rule out 3-year audits
While there have been no announcements regarding the proposed three-yearly audit cycle since June last year, one technical expert has urged the government to confirm that the measure is firmly “off ...Read more
APRA’s mortgage crackdown, the power of DeFi and last-minute tax tips
Listen now
What to expect as the end of lockdown looms? Will the Stage 2 tax cuts boost your tax return? Where should investors be looking as the economy reopens?
Listen now
Could property prices inflate by another 20%? What’s happening in recent dividend announcements? Did your fund fail the YFYS test?
Listen now
What does the NSW regional permit mean for property investors? Who really wins from the BHP-Woodside merger?
Listen now
Self managed super fund
Investing in property using an SMSF isn’t as simple as it seems
There are plenty of good reasons to invest in property via an SMSF, but it pays to do your homework. ...Read more
Self managed super fund
SMSFs are shunning direct shares in favour of property – but is this a good idea?
For several years, SMSFs allocation to direct shares has been in decline. This trend accelerated after COVID. ...Read more
Self managed super fund
ATO issues draft legislative instrument for SMSF rollovers
The ATO has released a draft legislative instrument for consultation on the payment standard that will apply for SMSF rollovers and release authorities from 31 March 2021. ...Read more
Self managed super fund
Critical steps outlined with property transfers and trust cloning
While trust cloning can be an effective strategy for transferring an asset from a related trust to an SMSF without paying duty, it is vital the right steps are followed to avoid issues with the anti-a...Read more
Self managed super fund
Associations lobby government to ‘level the playing field’ with capital raisings
With SMSF and retail investors often missing out on ASX capital raisings, the SMSF Association and Stockbrokers and Financial Advisers Association have proposed a number of steps that could be taken...Read more
Self managed super fund
SMSF property spruiker sentenced in Brisbane District Court
A former Queensland property developer has been sentenced to five years’ imprisonment after being found guilty of six counts of fraud involving SMSF funds. ...Read more
Self managed super fund
COVID-19 reveals ‘flaws’ with account-based pensions
With the pandemic impacting the financial positions of many retirees, the inadequacy of account-based pensions has left many superannuation fund members exposed, according to a new research paper. ...Read more
Self managed super fund
Government pushed to rule out 3-year audits
While there have been no announcements regarding the proposed three-yearly audit cycle since June last year, one technical expert has urged the government to confirm that the measure is firmly “off ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
