Friday 17 November 2006 LAWFUEL – Law News, Law Jobs Network – Mr Carmine Misale of Fulham Gardens, South Australia, was today represented by his solicitor in the Adelaide Magistrates Court in relation to 160 charges brought by the Australian Securities and Investments Commission (ASIC). These charges allege that Mr Misale’s company, Seabay Investments Pty Ltd (Seabay), was involved in illegal fundraising. Specifically, ASIC alleges that between June 2003 and November 2004 Seabay issued debentures in respect of 80 loans totalling $8.95 million in breach of the fundraising provisions of the Corporations Act.
The money loaned to Seabay was then on-lent to an unregistered managed investment scheme operated by Adelaide man, Mr Guiseppe Antonio Mercorella. Following the collapse of the Mercorella scheme, Seabay Investments Pty Ltd was left owing approximately 40 investors almost $25 million. The matter has been adjourned until 12 January 2007. The charges are being prosecuted by the Commonwealth Director of Public Prosecutions.
Background On 12 July 2005, ASIC commenced proceedings in the Federal Court of Australia alleging that between about April 2003 and April 2005, Seabay entered into loan facility agreements with investors and sought the winding up of Seabay which was, at that time, believed to owe some 40 investors approximately $20 million. On 28 February 2006, the Federal Court declared that Seabay had issued debentures in breach of the fundraising and debenture provisions of the Corporations Act. Seabay consented to the declarations being made. ASIC had sought an order that Seabay be wound up to ensure that its creditors received a fair and equitable distribution of any assets of the company.
However, Seabay and its investors entered into deeds of compromise and forgiveness of debt under which the investors forgave the debt owing to them by Seabay, and Seabay promised to pay the investors 20 per cent of their loans by 1 March, 2009. As part of the resolution of its Federal Court action, ASIC required Seabay’s sole director, Mr Carmine Misale, to personally guarantee the payments to investors under the deeds and he has done so. For further information contact: Allen Turton Deputy Executive Director, Enforcement Telephone: 02 9911 2338 Mobile: 0411 549 236 Emma Forehan ASIC Media Unit Telephone: 03 9280 3354 Mobile: 0409 702 310