Former director charged over dishonest conduct with super money
The former director of an unlicensed SMSF firm has been charged with dishonest conduct following allegations by ASIC he dishonestly obtained superannuation funds from investors.
On 3 December 2020, Mr Mudasir Mohammed Naseeruddin appeared in the Melbourne Magistrates’ Court and was charged with seven counts of dishonest conduct, ASIC said in a public statement.
Mr Naseeruddin was also charged with two counts of failing to exercise his power as a director and discharge his duty in good faith under the Corporations Act, according to ASIC.
ASIC alleges that Mr Naseeruddin dishonestly obtained superannuation funds from investors based on false representations, including representations that the funds would be invested in property development.
ASIC also alleges that Mr Naseeruddin misused his position as a director of Secure Investments for his own benefit by using funds invested with the company to purchase shares for himself in a security company.
Mr Naseeruddin was a director of two unlicensed financial services businesses, Secure Investments Pty Ltd (Secure Investments) and Aquila Group Pty Ltd (Aquila), which are both in liquidation.
In October, the Federal Court ordered the wind-up of the two firms after determining that Secure Investments and Mr Mudasir Naseeruddin breached the Corporations Act by operating a financial services business without holding an Australian financial services licence.
According to an ASIC statement from late October, Mr Naseeruddin encouraged investors to roll over their superannuation accounts into SMSFs set up by an associate of Mr Naseeruddin. ASIC alleges that investor funds were then transferred via a cash management account to Secure Investments.
The matter is being prosecuted by the Commonwealth Director of Public Prosecutions after a referral from ASIC.
The matter was adjourned to the Melbourne Magistrates’ Court for committal mention hearing on 6 April 2021.
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates. Miranda has also directed SMSF Adviser's print publication for several years.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.