LAWFUEL – Press Release Service – Mr Scott Daniel Tracy, a former director of deregistered company Endeavour Funds Management Limited (Endeavour FML), was yesterday convicted in the New South Wales District Court and placed on a two year good behaviour bond.
Mr Tracy was convicted after pleading guilty to two charges of obtaining a financial advantage by making false and misleading statements following an investigation by the Australian Securities and Investments Commission (ASIC).
ASIC alleged that between 8 April and 24 April 2004, Mr Tracy made false and misleading statements to Macquarie International Capital Adviser Pty Ltd (MICAP) about the trading history of Endeavour FML.
These statements were made to ensure that the company gained a funds manager’s role in the May 2004 prospectus issued by Macquarie Equinox Limited.
ASIC’s Executive Director of Enforcement, Ms Jan Redfern, said the sentencing of Mr Tracy highlighted that directors who acted fraudulently, for their own financial benefit, would be pursued.
‘Making false statements with the intention of deliberately misleading others is a serious matter and directors should be mindful that such behaviour is illegal and offenders will be punished’, Ms Redfern said.
‘This result automatically disqualifies Mr Tracy from managing a company for five years.’
The matter was prosecuted by the Commonwealth Director of Public Prosecutions.
Background
Mr Tracy had worked in the financial markets since 1986 in a number of capacities. In 1999, he registered the business name Endeavour Funds Management and this later became a corporate entity in May 2000.
Endeavour was set up as an investment company specialising in the provision of currency management and tactical asset allocation services to the funds management industry.
MICAP was the risk adviser to Macquarie Equinox Limited (Equinox) and commenced due diligence in late 2003 on prospective funds managers that Equinox was considering for inclusion in the portfolio underlying an upcoming offering by Equinox. Endeavour FML was one of a number being considered for these positions.
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On two occasions during April 2004, Mr Tracy sent false information to MICAP on Endeavour’s past trading performances and this influenced MICAP to include Endeavour as one of the managers in the Equinox offering. The trading history included statistical records that were not the actual track records for Endeavour but were merely simulations if trading had taken place.
After MICAP became aware that the information provided by Mr Tracy was false it terminated the management agreement with Endeavour.
No investor lost any money as a result of the false and misleading statements made by Mr Tracy.
ASIC’s investigations commenced following a complaint from an auditor who was concerned that Mr Tracy had provided MICAP with false information.
For further information contact:
Jan Redfern
Executive Director, Enforcement
Telephone: 02 9911 2191
Mobile: 0411 119 210
Emma Forehan
ASIC Media Unit
Telephone: 03 9280 3354
Mobile: 0409 702 310
LAWFUEL – Press Release Service – Mr Scott Daniel Tracy, a former di…
