ASIC has successfully applied to the Federal Court of Australia to wind up two NSW-based companies, SA Services and Orphans Asia.
SA Services and Orphans Asia came to ASIC’s attention during the investigation into PW Kitt Co and Larry Dawson, both the subject of ASIC action in the Federal Court of Australia last year.
“ASIC’s application was based on concerns that SA Services and Orphans Asia allegedly obtained approximately $2.4 million in Australian investor funds through cold-calling Australian consumers and operating the now-defunct website smsfadvisory.com,” ASIC said.
“Neither SA Services nor Orphans Asia is licensed or authorised to deal in financial products or provide financial services.”
At the regulator’s request, the companies passed special resolutions resolving that their respective companies be wound up by the court.
ASIC has also obtained orders that Michael Hill and Anthony Connelly of McGrathNicol, the current liquidators of PW Kitt Co, be appointed as joint and several liquidators of SA Services and Orphans Asia.
The regulator’s concerns about Orphans Asia and SA Services arose during its investigation into Larry Dawson and PW Kitt Co. Larry Dawson is a director of both PW Kitt Co and Orphans Asia.
ASIC said its investigation identified that PW Kitt Co obtained over $7.4 million in Australian investor funds through allegedly cold-calling and operating the websites smsfadvisory.com and pwkittco.com.
PW Kitt Co held no licence or authority to deal in financial products or provide financial services.
ASIC has since successfully applied to the court to wind up and appoint liquidators to PW Kitt Co. ASIC’s action against Larry Dawson for breaching his duties as a director of PW Kitt Co has been adjourned pending the hearing and determination of a NSW Police criminal proceeding against Mr Dawson.
ASIC had submitted to the court that the defendants were using the same or substantially similar company and business names to an unrelated business, SMSF Advisory Services Pty Ltd and P.W. Kitt & Co.
“It is also alleged that the defendants used the Australian financial services (AFS) licence number of another company,” ASIC said.
“ASIC remains concerned that the defendants appear to have no connection with those businesses and hold no licence or authority to deal in financial products or provide financial services.”
There are lots of simple processes ASIC could do to save time and money and heartache! But for whatever reason they remain very reactionary. They should be making phone calls. For 5 minutes of someone’s paid employment a phone call to inquire about the services on offer and check AFSL details.
The same that ASIC could phone up companies who are heading for deregistration to see what the go is. This might help flag phoenix activities. It just needs someone to make the call and save financial ruin, heartache and show proactiveness!
$9.8m, Larry was not acting alone and this happened over a period of time. Why can’t ASIC periodically check the businesses against the AFS license number. This is reactive not proactive.