Monday 16 July 2007 LAWFUEL – The Legal Newswire – Mr Carmine Misal…

Monday 16 July 2007 LAWFUEL – The Legal Newswire – Mr Carmine Misale, of Fulham Gardens, South Australia, has been committed for trial on 160 charges brought by the Australian Securities and Investments Commission (ASIC) relating to fundraising by his company, Seabay Investments Pty Ltd (Seabay Investments). Mr Misale pleaded not guilty. ASIC alleges that between June 2003 and November 2004 Seabay Investments issued debentures in respect of 80 loans from members of the public totalling $8.95 million in breach of the fundraising provisions of the Corporations Act.

The money loaned to Seabay Investments was then on-lent to an unregistered managed investment scheme operated by Mr Guiseppe Antonio Mercorella which collapsed owing investors a total of $75.8 million. When the Mercorella scheme collapsed, Seabay Investments was left owing lenders nearly $25 million. Mr Misale is to appear in the District Court in Adelaide on 13 August 2007 for arraignment. 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 Investments entered into loan facility agreements with investors and sought the winding up of Seabay Investments which was, at that time, believed to owe some 40 investors approximately $20 million. On 28 February 2006, the Federal Court declared that Seabay Investments had issued debentures in breach of the fundraising and debenture provisions of the Corporations Act.

Seabay Investments consented to the declarations being made. ASIC had sought an order that Seabay Investments be wound up to ensure that its creditors received a fair and equitable distribution of any assets of the company. Seabay Investments and its investors have now entered into deeds of compromise and forgiveness of debt. As part of the resolution of its Federal Court action, ASIC required Seabay Investment’s sole director, Mr Carmine Misale, to personally guarantee the payments to investors under the deeds which he has done. For further information contact: Danielle Huck ASIC Media Unit Telephone: 03 9280 3407 Mobile: 0417 540 769

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