Enforcement: ASIC freezes assets of Pacific Blue securities house.
ASIC yesterday obtained ex-parte interim orders in the Federal Court of Australia restraining Pacific Blue Securities Pty Ltd and its sole director Mr Sean Fogarty from disposing of assets and prohibiting Mr Fogarty from leaving Australia without the consent of the Court. This is further to ex-parte interim orders obtained by ASIC on 10 September 2009.
The orders follow the commencement of an ASIC investigation into Pacific Blue Securities’ affairs. ASIC informed the Court that it suspects that Pacific Blue Securities is advising on and dealing in interests in financial products without holding an Australian financial services licence.
ASIC is also concerned about a number of claims made on the Pacific Blue Securities website and in literature distributed to the public.
ASIC commenced proceedings following a number of complaints alleging that returns on investments were not honoured. At this stage, ASIC believes that in excess of AUD400,000 has been invested with Pacific Blue Securities by around 40 investors.
The orders made by Justice Goldberg require that, until the hearing and determination of ASIC’s interlocutory process or further order, Pacific Blue Securities and Mr Fogarty be restrained from:
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(a) |
carrying on a financial services business by: |
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(i) |
issuing, granting or making available Pacific Blue Securities’ financial products, including margin trading and managed accounts (the Products); |
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(ii) |
advertising, promoting or marketing the Products or any business or service that involves the Products; |
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(iii) |
making available or causing, authorising or permitting to be made available for access on the internet, including but not limited to the website conducted with the domain name “pbsecurities.com.au”, any material promoting, advertising or offering the Products; |
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(iv) |
soliciting subscriptions for any of the Products; |
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(v) |
operating the Products. |
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(b) |
receiving, transferring or disposing of any funds received or held in connection with the Products and taking or sending out of Australia any money, financial products or other property belonging to them. |
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(c) |
disposing of, destroying, amending, altering, parting with possession of, or causing or procuring any of these things to happen to the books or records relating to the Products. |
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Further, the orders made by Justice Goldberg require that until the hearing and determination of ASIC’s interlocutory process or further order:
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(a) |
Pacific Blue Securities and Mr Fogarty de-activate all internet websites within their power or control promoting, advertising or offering the Products, including the website conducted with the domain name www.pbsecurities.com.au; |
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(b) |
Mr Fogarty surrender any passports in his possession and be restrained from leaving Australia without the consent of the Court. |
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The matter returns to the Federal Court in Melbourne on 8 October 2009. ASIC’s investigation is continuing.
ASIC will not be commenting further on the investigation or these proceedings at this time.
Source: ASIC
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