Wednesday 15 November 2006 LAWFUEL – Law News, Law Jobs Network – Mr Mark David, of New Farm in Queensland, today pleaded guilty in the Southport District Court to dishonestly inducing persons to deal in financial products following an investigation by the Australian Securities and Investments Commission (ASIC). ASIC alleged that Mr David dishonestly induced the trustees of various superannuation funds to rollover their member’s superannuation benefits to the Health Group Superannuation Fund.
The inducements were dishonest as they failed to disclose all of the facts relevant to those rollovers. ASIC further alleged that preserved superannuation monies were then released by the funds to members before those members were eligible to receive them. It is alleged Mr David was responsible for establishing the funds for the sole purpose of receiving superannuation rollover monies and then releasing those monies to members at a lower fee. Approximately $385,000.00 of superannuation monies were released.
Mr David will be sentenced on 21 November 2006. This matter is being prosecuted by the Commonwealth Director of Public Prosecutions. Background The criminal charges against Mr David follow earlier civil action taken by ASIC. In December 2003, Federal Court orders were made restraining Mr David from dealing with any business that facilitates the early release, rollover, redemption or transfer of superannuation interests.
In February 2004, Federal Court orders were obtained in relation to Mr David arising out of his involvement with the Health Group Superannuation Fund. In December 2005, a co-accused of Mr David, Mr Arkady Sittczenko, was sentenced to 18 months imprisonment. For further information contact: Allen Turton Deputy Executive Director, Enforcement Telephone: 02 9911 2338 Mobile: 0411 549 236 Danielle Huck ASIC Media Unit Telephone: 03 9280 3407 Mobile: 0417 540 769