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Federal Court makes further orders around SMSF scheme
The Federal Court has made further orders around alleged fraudulent SMSF scheme My Wealth Manager Financial Services, as it emerged the alleged operators of the scheme had left the country.
In a judgment handed down on 13 December, the court ordered the company and its associated defendants Mustafa Mohammed, Mahek Mustafa and Mubashir Mohammed to immediately deliver to the receivers all books, records and papers relating to the scheme and the defendants’ own property.
ASIC had previously obtained interim orders on 21 November appointing Deloitte as receivers of My Wealth Manager and a second associated company, 3M Financial Planning.
The court noted that following those orders being obtained, “the receivers appointed... have had substantial difficulties in accessing the books of... the defendants” and therefore further orders could be made to assist the receivers.
ASIC had also sought further orders to appoint receivers to two other companies associated with My Wealth Manager: My Wealth Protection and Secure Investments. However, the court found insufficient evidence had been produced to link the companies with the defendants and the scheme itself.
“Despite what appears to be concerning conduct by Secure Investments or My Wealth Protection, albeit not yet explained, the court lacks the power to appoint receivers or grant any lesser remedy on the present application,” the judgment said.
While the court had also ordered the directors of the associated companies — Mustafa Mohammed, his wife Mahek Mustafa and brother Mubashir Mohammed — to be restrained from leaving Australia without court consent, it emerged that they had already left the country prior to a previous hearing on the case.
“None of [the defendants] have indicated if or when they will return to this country. Information has been sought from those persons or some of them and it has not been forthcoming,” the court said.
“It is possible to draw the inference that they will not assist ASIC’s investigations. They are all citizens of India and have previously held Indian passports.”
The new orders follow ASIC’s announcement earlier this month that it was commencing civil proceedings against My Wealth Manager, the Mohammed brothers and Ms Mustafa.
In a statement on 4 December, ASIC said it was seeking declarations from the Federal Court that the three had contravened the Corporations Act by operating an unregistered managed investment scheme.
ASIC said in its statement that the defendants had gained over $7 million in super assets from My Wealth Manager customers by encouraging them to roll their super from APRA-regulated funds into an SMSF, and had then used the funds for personal payments to friends and family.
However, updated figures in the most recent judgment indicate more than $8 million had been obtained from over 50 customers.
Mudasir is a fraud, thief and liar good ASIC is onto him and has blocked him from leaving the country
20-108MR ASIC obtains asset freezing orders against Melbourne property developer Mudasir Mohammed Naseeruddin and related entities
ASIC has commenced civil proceedings and obtained urgent interim orders in the Federal Court against Mudasir Mohammed Naseeruddin (commonly referred to as Naseer or Mudasir), Secure Investments Pty Ltd (Secure Investments) and Aquila Group Pty Ltd (Aquila) (the Defendants) due to concerns of misleading and deceptive conduct and the operation of an illegal managed investment scheme.
This matter demonstrates ASIC’s readiness to take urgent action to protect vulnerable superannuation consumers in the current COVID-19 environment.
On 1 May 2020, ASIC obtained urgent interim orders to:
appoint Provisional Liquidators to Secure Investments;
appoint Receivers and Managers to Aquila;
stop Aquila and Mr Naseeruddin from dealing with, disposing of and/or diminishing the value of their assets;
restrain the Defendants from carrying on any kind of financial services business in Australia;
restrain the Defendants from receiving, soliciting, transferring or disposing of investor funds they have already received for previous investment activities;
restrain the Defendants from raising further funds from investors for investment activities; and
restrain Mr Naseeruddin from leaving Australia.
ASIC alleges Mr Naseeruddin raised at least $2.4 million from 28 investors through his company Secure Investments. It is ASIC’s case that investors were encouraged to roll over their superannuation funds into new self-managed superannuation funds (SMSFs) and invest their SMSF monies in Secure Investments by way of a loan and were told they were investing in property.
ASIC also alleges that from December 2019, Mr Naseeruddin raised $250,000, through his company Aquila, by encouraging Indigenous investors to roll over their superannuation funds into new SMSFs and then invest the SMSF monies in Aquila by way of a loan. ASIC alleges that Mr Naseeruddin paid these investors a lump sum from their SMSF in exchange for an agreement to invest in Aquila and they were told their SMSFs were investing in property.
ASIC also alleges the Defendants used investor funds, at least in part, for their own personal use.
ASIC is seeking declarations from the Federal Court that the Defendants have contravened the Corporations Act 2001 by making false and misleading statements and engaging in misleading and deceptive conduct. ASIC is also seeking declarations that Mr Naseeruddin and Secure Investments breached the Corporations Act by operating an unregistered managed investment scheme which should have been registered. Also, that Mr Naseeruddin and Secure Investments operated the unregistered scheme without holding an Australian Financial Services licence.
ASIC’s investigation is continuing.
The matter will return to court today (8 May 2020).
Editor's note:
The hearing of ASIC’s interlocutory application has been adjourned to 9:30am on 19 June 2020.0- I am one of the investors with Secure Investments and they had outrightly played with our trust and money. Further to this, they promised us returns which they delayed payment and now we hear they are out of country. They did not respond to any calls, emails and even their parents are not responding to our queries. Secure Investments is the feeding company robbing vulnerable people like us and taking our money overseas without any of our knowledge. Mudasir and Mubashir are Australian citizens and this is undeniable fact. They were educated here in the Northern Suburbs. It is hurting to learn that they have 'bought' Indian citizenship now to make their transfer of money easy. What a scam! What do we do now with people like these two? We have reported to AFCA and still awaiting their response.0
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