In a statement, ASIC said former van Eyk Research chief executive Mark Thomas had been charged with four counts of dishonestly using his position as an officer of a company with the intention of gaining an advantage on 18 May in the Downing Centre Local Court.
The charges relate to Mr Thomas allegedly using his position as CEO to facilitate a loan of almost $5 million from a subsidiary of van Eyk, Blueprint Investment Management, to TAA Melbourne to purchase an interest in van Eyk and prevent a third-party company from obtaining a majority shareholding in the company.
Mr Thomas had also instructed another company to rebalance two funds of which van Eyk was the investment manager into a separate fund (the Rebalance Investment), concealing reasonable detail of the Rebalance Investment and its purpose, while knowing that the rebalance was to fund the acquisition of the loan to TAA.
He also used his position as director of another van Eyk-owned subsidiary, Three Pillars Portfolio Managers, to facilitate the acquisition of the loan made to TAA, concealing reasonable detail of the investment and its purpose and misrepresenting that there was no conflict.
“ASIC alleges that, at this time, Mr Thomas knew the purpose of the acquisition of the loan, which was directed to maintaining ongoing control of van Eyk Research,” the regulator said.
van Eyk was liquidated in 2014 after its Blueprint series of funds generated a series of losses and invested heavily in illiquid assets, prompting responsible entity Macquarie Bank to suspend trading in the products.
The maximum penalty for each count of the offences Mr Thomas is charged with is $340,000 or imprisonment for five years, or both.
Pretty heavy offences. Amazing what people in reputable can sometimes do.