Wednesday 17 January 2007 LAWFUEL – Australia Law News – The Australian Securities and Investments Commission (ASIC) has filed an application in the Federal Court in Melbourne to wind up E.K.B. Properties Pty Ltd (E.K.B), Sandgrove Specialised Securities Ltd, (Sandgrove) and Cardinia Specialised Securities Ltd (Cardinia). ASIC is also seeking orders that Mr Karl Heinz Hermann Veljkovic, of Berwick, and Mr Barry John Patrick of Pakenham, Victoria, be banned from managing corporations and that they be found guilty of contempt of court for breaching orders made by the Federal Court on 11 October 2001.
ASIC is also seeking injunctions against Mr Veljkovic and Mr Patrick restraining them from carrying on a financial services business; from receiving, soliciting or otherwise procuring funds from any person for the purpose of issuing, selling or offering a financial product; from parting with any funds that have come into their possession by them issuing, selling or offering a financial product; and from managing corporations. ASIC is seeking to appoint Simon Wallace-Smith and Timothy Bryce Norman of Deloitte as provisional liquidators to E.K.B., Sandgrove and Cardinia pending determination of the application by the Court. ASIC alleges, among other things, that Mr Veljkovic and Mr Patrick advised investors to roll over their superannuation into a self-managed fund and then invest those funds in companies either operated by or associated with Mr Veljkovic and Mr Patrick, including E.K.B., Sandgrove and Cardinia. ASIC alleges that between May 2003 and January 2006, amounts totalling at least $2.5 million were received from investors by entities directly associated with Messrs Veljkovic and Patrick and that investors have not been repaid.
The first directions hearing is scheduled for 6 February 2007 in Melbourne’s Federal Court. Background On 11 October 2001, the Federal Court made orders by consent that Mr Veljkovic and Mr Patrick be restrained until 11 October 2006 from soliciting money from a regulated superannuation fund for an unregistered managed investment scheme, carrying on an unlicensed securities business which involves the soliciting of money from a regulated superannuation fund, and carrying on an unlicensed investment advice business which comprises advice to a regulated superannuation fund (refer to ASIC media release 01/366). 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