Mr Mudasir Mohammed Naseeruddin used the money from the newly created SMSFs to lend money to his own two companies, Secure Investments Pty Ltd and Aquila Group Pty Ltd.
Between about 13 May 2015 and about 6 January 2020, Mr Naseeruddin dishonestly obtained more than $520,000 from six investors on the basis that the funds would be invested in property developments. Only a small portion of their funds was invested this way.
Between 14 July 2016 and 23 December 2019, Mr Naseeruddin also dishonestly used his position as a director of Secure Investments Pty Ltd to withdraw over $550,000 from the company to purchase shares in a security company for his own benefit.
This matter is being prosecuted by the Commonwealth Director of Public Prosecutions following an investigation and referral by ASIC.
The matter will return to court on 6 December 2023 for a plea hearing.
In December 2020, Mr Naseeruddin was arrested and charged with dishonest conduct and misuse of his position as a director (20-310MR). The arrest came after ASIC took civil action to obtain interim orders to preserve the assets of Mr Naseeruddin’s companies, Secure Investments Pty Ltd and Aquila Group Pty Ltd (20-108MR).
In October 2020, ASIC obtained orders to wind up Mr Naseeruddin’s companies and declarations that Mr Naseeruddin had operated a financial services business without the appropriate licence (20-257MR).
The maximum penalty for the offence of dishonest conduct while carrying on a financial services business, contrary to section 1041G of the Corporations Act 2001 (Cth), is 10 years imprisonment for offences committed up to and including 12 March 2019 and 15 years imprisonment for offences committed on or after 13 March 2019.
The maximum penalty for a breach of directors’ duties, contrary to section 184(2) of the Corporations Act 2001 (Cth), is five years imprisonment for offences committed up to and including 12 March 2019 and 15 years imprisonment for offences committed on or after 13 March 2019.
