Former van Eyk Research chief executive Mark Thomas has appeared in a Sydney court charged with four counts of dishonestly using his position as a director or officer of a company with the intention of gaining an advantage for himself.
The Australian Securities and Investments Commission (ASIC) stated Thomas, of Kanimbla, NSW, appeared before the Downing Centre Local Court on 18 May in a matter that is being prosecuted by the Commonwealth Director of Public Prosecutions following a referral from ASIC.
The corporate watchdog alleges that between 31 January 2014 and 20 February 2014, Thomas, as an officer of van Eyk Research and director of a New Zealand-based subsidiary of van Eyk Research, Blueprint Investment Management Ltd (BIML), facilitated an investment of nearly $5 million from BIML.
Additionally, ASIC alleges he used his positions to conceal from the trustee of the Blueprint CashPlus Fund and Blueprint Australasian Income Fund reasonable detail of the BIML Investment and its purpose, knowing the funds from the BIML investment would be loaned to TAA Melbourne to purchase an interest in van Eyk Research to prevent a third party from obtaining a majority shareholding in the research firm.
The regulator further alleges that between 21 February 2014 and 11 March 2014, he used his position as an officer of van Eyk Research to facilitate and instruct another company to rebalance two funds – for which van Eyk Research was the investment manager – into a separate fund (the rebalance investment), concealing reasonable detail of the rebalance investment and its purpose, while knowing the rebalance was to fund the acquisition of the loan to TAA and ultimately prevent a third party from obtaining a majority shareholding in van Eyk Research.
It also alleges that during this second period, he used his position as a director of a wholly owned subsidiary of van Eyk Research, Three Pillars Portfolio Managers, to facilitate the acquisition of the loan made to TAA, concealing reasonable detail of the investment and its purpose and misrepresenting that there was no impediment or material conflict.
ASIC alleges that, at this time, he knew the purpose of the acquisition of the loan, which was directed to maintaining ongoing control of van Eyk Research.
The maximum penalty for each count of an offence of a director, other officer or employee of a corporation using their position dishonestly under the Corporations Act is $340,000 or imprisonment for five years, or both.
The matter has been adjourned for mention in the Downing Centre Local Court on 13 July.
