ASIC has commenced legal action against LM Investment Management, seeking financial penalties and banning orders against the collapsed fund manager.
The corporate regulator announced it had brought civil proceedings in the Federal Court of Australia against LM Investment Management founder Peter Charles Drake and former directors Francene Maree Mulder, Eghard van der Hoven, Simon Jeremy Tickner, and Lisa Maree Darcy.
In a statement, ASIC alleged Mr Drake “used his position to gain an advantage for himself and the former directors breached their director’s duties for failing to act with the proper degree of care and diligence regarding transactions involving the LM Managed Performance Fund (MPF).”
Specifically, ASIC stated the action concerns a series of loans made to Maddison Estate Pty Ltd – which Mr Drake owned – to develop a Gold Coast property development in 2011 and 2012.
The maximum fine for a director breaching their duties is $200,000 for each contravention, ASIC stated.
As well as fines, ASIC is also seeking to disqualify Mr Drake and the former directors from managing companies and providing financial services, according to the statement.
SUBSCRIBE TO THE IFA DAILY BULLETIN
17 Nov 2017Adviser regulation loosens under TrumpBy Aleks Vickovich
17 Nov 2017Advisers called on to drive ESG discussionBy Jessica Yun
17 Nov 2017Managed Accounts completes Linear acquisitionBy Staff Reporter
17 Nov 2017Zurich takes out AFA Consumer Choice awardBy Aleks Vickovich
16 Nov 2017Bell Potter pays $360k fineBy Staff Reporter
16 Nov 2017SSM vote highlights LGBTI advice issuesBy Aleks Vickovich
- view all