The Australian Securities and Investments Commission (ASIC) has charged a former company director with dishonest conduct relating to the mismanagement of clients’ SMSFs.
Following the regulator’s investigation, Mudasir Naseeruddin was charged with seven counts of dishonest conduct and two counts of failing to exercise his power as a director and discharge his duty in good faith under the Corporations Act.
“ASIC alleges that Mr Naseeruddin dishonestly obtained superannuation funds from investors based on false representations, including representations that the funds would be invested in property development. Mr Naseeruddin was a director of Secure Investments Pty Ltd (Secure Investments) and Aquila Group Pty Ltd (both in liquidation),” ASIC said.
“ASIC also alleges that Mr Naseeruddin misused his position as a director of Secure Investments for his own benefit by using funds invested with the company to purchase shares for himself in a security company.”
Each offence carries a maximum penalty of up to 15 years imprisonment, the regulator stated.
The matter is being prosecuted by the Commonwealth Director of Public Prosecutions after a referral from ASIC and has been adjourned to 6 April.
In October, ASIC announced the Federal Court had ordered the winding up of Secure Investments, and the company and Naseeruddin had breached the Corporations Act by operating a financial services business without holding an Australian financial services licence.
The regulator alleged Naseeruddin had encouraged investors to roll over their superannuation accounts into SMSFs set up by one of his associates.
It also alleged investor funds were transferred via a cash management account to Secure Investments and significant amounts from the funds were further transferred into accounts held by Naseeruddin and other related entities.
