Thursday 14 September 2006 06 – LAWFUEL – Legal News Daily – Mr Karl Heinz Hermann Veljkovic, of Berwick, and Mr Barry John Patrick of Pakenham, Victoria, have appeared in the Melbourne Magistrates Court on charges of attempting to pervert the course of justice following an investigation by the Australian Securities and Investment Commission (ASIC).
These charges follow fraud and other charges brought by ASIC against the two men in March 2006 after an investigation into the operation of an unlicensed financial services business, Teilis Financial Services Pty Ltd (now in liquidation) (Teilis). ASIC alleges that after these criminal charges had been issued, Messrs Patrick and Veljkovic informed some of the investors that they would be treated less favourably as creditors while they remained witnesses in respect of the charges brought against them by ASIC.
ASIC alleges Mr Veljkovic, 68, was knowingly involved in operating Teilis without a licence and induced investors to rollover their superannuation benefits into self-managed superannuation funds. It is alleged these funds were then used to support other companies and businesses associated with Mr Veljkovic, in particular the operation of petrol stations in the Gippsland towns of Moe, Morwell and Rawson. Other charges relate to the circumstances in which various loans and other forms of financial accommodation were obtained by other companies associated with Mr Veljkovic and Mr Patrick.
Mr Veljkovic faces a total of 22 counts, including: • obtaining property by deception, • fraudulently inducing persons to redeem their superannuation, • providing unlicensed investment advice, • fraudulently inducing persons to deal in securities, • using his position as company director to gain a financial advantage, • operating a securities business without a dealer’s licence, • failing to disclose pecuniary interests when making investment recommendations, • failing to keep company books and records, • failing to provide assistance to a company liquidator, and. • attempting to pervert the course of justice
On 28 April 2006, Mr Patrick, 63, was committed to stand trial in the County Court of Victoria on a total of nine charges, including obtaining property by deception, failing to keep company books and records, and failing to provide assistance to a company liquidator.
The Magistrate, Mr Hodgens, committed both men to appear before the County Court of Victoria on 28 November 2006, Mr Veljkovic in relation to all charges and Mr Patrick in relation to the sole charge against him then before the Court of attempting to pervert the course of justice. The matter is being prosecuted by the Commonwealth Director of Public Prosecutions.
The six companies operated by Messrs Veljkovic and Patrick were Teilis Financial Services Pty Ltd, Aarosonic Credits Limited, Supatrust Finance Ltd, Pacific Petroleum Services Pty Ltd, H.B.L Holdings Pty Ltd, and Texol Petroleum Services Pty Ltd. On 12 October 2001, ASIC successfully applied for Federal Court orders appointing a liquidator to the six companies and restraining Messrs Veljkovic and Patrick and their wives from: • soliciting money from regulated superannuation funds for an unregistered managed investment scheme • carrying on an unlicensed securities business which involved the soliciting of money from regulated superannuation funds, and • carrying on an unlicensed investment advice business which comprised advice to a regulated superannuation fund. The liquidator advised that there were insufficient funds available for any return to the investors. For further information contact: Allen Turton Deputy Executive Director, Enforcement Telephone: 02 9911 2338 Mobile: 0411 549 236 Angela Friend ASIC Media Unit Telephone: 03 9280 3338 Mobile: 0412 058 800