Coporate watchdog ASIC has ordered four current and former directors of Endeavour Securities and Linchpin Capital Group to collectively pay $390,000 in penalties.
Peter Daly contested ASIC’s case and will pay a $150,000 penalty and be banned from managing corporations for five years.
Paul Nielsen, Ian Williams and Paul Raftery did not contest ASIC’s case at trial. The former two will each pay a $100,000 penalty and be banned from managing corporations for four years, while the latter will pay $40,000 and be banned for three years.
Both entities are in liquidation. The order came after the Federal Court previously found the directors to have breached their duties as officers of an entity of a registered managed investment scheme and failed to act in members’ best interests.
Nielsen, Raftery and Williams agreed to each pay $175,000 towards ASIC’s costs. Daly has also been ordered to pay $175,000 in addition to a further proportion of ASIC’s costs associated with the contested hearings.
Endeavour was the responsible entity of a registered managed investment scheme called the Investport Income Opportunity Fund.
Linchpin operated an unregistered managed investment scheme, which was also called the Investport Income Opportunity Fund. Both funds were placed into liquidation in 2019.