Trio kingpin Jack Flader free of ASIC's eyes
Banking and Finance
October 29, 2013 - 3:05PM
Mastermind ... Jack Flader. Photo: Alex Hofford
The corporate watchdog is abandoning an international investigation into Jack Flader, the mastermind of Australia’s biggest superannuation fraud.
Abandonment of the probe ends any possibility of charges being laid against Mr Flader, who a court found was the ‘‘ultimate controller’’ of Trio Capital, which took $176 million from investors.
The Australian Securities and Investments Commission revealed the investigation would be ‘‘finalised’’ mid-way through a lengthy update of its investigation into Trio, posted to its website on Tuesday.
The move comes as ASIC faces a Senate inquiry into its performance, launched by National Party Senator John Williams and Labor Party Senator Doug Cameron after criticism of its response to misconduct by financial planners at the Commonwealth Bank.
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A parliamentary inquiry into the collapse of Trio Capital in May last year slammed regulators, including ASIC, for their scanty efforts to prosecute Mr Flader.
The following month, ASIC said it did not have enough evidence to show Mr Flader had breached Australian law, but would provide information to Federal Police, the Crime Commission and overseas regulators.
On Tuesday, ASIC said that since then, ‘‘ASIC, the Australian Federal Police and our overseas regulatory counterparts have sought to obtain extra evidence to establish that Mr Flader breached Australian law’’.
‘‘However, despite this work, there is insufficient evidence to prove Mr Flader breached Australian law,’’ ASIC said.
‘‘In the circumstances, ASIC is now finalising its investigation into Mr Flader.’’
Trio went into administration in December 2009 and its Astarra investment funds were wound up by order of the NSW Supreme Court in March the following year.
One of Trio’s directors, Shawn Richard, was sentenced to a maximum of two and a half years jail in August 2011 after pleading guilty to dishonesty charges.
In sentencing, NSW Supreme Court judge Peter Garling said Richard ‘‘acted under the ultimate control and instruction of Mr Jack Flader’’, who was ‘‘the architect and ultimate controller of the scheme’’.
In other Trio Capital developments, former investment manager Tony Maher, formerly known as Paul Gresham, has been released on bail after pleading guilty to 20 charges in Sydney’s Downing Centre Local Court.
Maher, 60, of Katoomba, admitted to making false or misleading statements that resulted in his company, PST Management, reaping more than $500,000 in management fees.
He admitted repeatedly overstating the value of the shares a Trio fund, ARP Growth, held in British Virgin Islands company Professional Pensions ARP.
The matter is set down for sentencing in the Sydney District Court on November 8.
Read more: http://www.smh.com.au/business/banking-and-finance/trio-kingpin-jack-flader-free-of-asics-eyes-20131029-2wdi6.html#ixzz2j70AHkYq |
