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
News
- 14 Nov 2018ASIC bans financial services representativeBy Eliot Hastie
- 14 Nov 2018Fintech should make advice ‘enjoyable’By Adrian Flores
- 14 Nov 2018Hayne commission driving adviser tech shiftBy Adrian Flores
- 12 Nov 2018InvestSMART launches maxed feesBy Sarah Simpkins
- 13 Nov 2018Advice demand soaring despite reputation hitBy Adrian Flores
- 12 Nov 2018Former premier, advisers sound alarm on sex discriminationBy James Mitchell
- view all
