Enforcement: ASIC charges two with doing unlicensed business
Barry John Patrick of Frankston, Victoria has been 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. Karl Heinz Veljkovic of Beaconsfield, Victoria has been charged on one count with carrying on a financial service business without holding an AFSL.
The charges against Patrick relate to his alleged involvement with three entities: Casey Business Finance, Cardinia Specialised Securities Limited and Borocco Investment Services. The charge against Veljkovic relates to alleged involvement with Casey Business Finance
ASIC alleges that between 1 August 2003 and 31 December 2006 Patrick and Veljkovic induced approximately 40 investors to invest in property development schemes. E.K.B Properties raised approximately AUD4 million, Sandgrove Specialised Securities Ltd raised approximately AUD1.5 million and Cardinia Specialised Securities Ltd raised approximately AUD1 million.
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.
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 Patrick and Veljkovic.
Veljkovic and 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.
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