The Australian Securities and Investments Commission (ASIC) has issued former investment manager Eugene Liu of liquidated Astarra Asset Management (AAM) with a lifetime ban, finding him in breach of financial services laws.
In a statement issued yesterday, ASIC outlined the findings of its investigation into Mr Liu’s conduct as investment manager of the Astarra Strategic Fund (ASF), a hedge fund of which the now-defunct Trio Capital was responsible entity.
“[The] ASIC investigation found Mr Liu engaged in dishonest conduct and conduct that was misleading or likely to mislead during his time as a director of AAM,” the statement said.
“Specifically, ASIC found Mr Liu engaged in dishonest conduct with respect to incorrect statements made in the ASF Product Disclosure Statement; dishonest conduct and conduct which was misleading or likely to mislead regarding a research report about ASF; dishonest conduct in receiving more than $388,041 in payments outside his salary, as a reward for his involvement in the investment of ASF assets in certain funds; and dishonest conduct and conduct which was misleading or likely to mislead in hiding where ASF investment money would ultimately be placed.”
The breaches are alleged to have taken place between February 2006 and December 2009, during which period funds of up to $125 million were invested in the ASF.
ASIC chairman Greg Medcraft said the ban should serve as a warning.
“Mr Liu’s banning should act as a deterrent to all those in the industry,” he said. “Australian investors should be confident and informed, and those individuals who do not promote these values when dealing with consumers have no place in the industry.”
The statement confirms that Mr Liu has the right to appeal to the Administrative Appeals Tribunal.
ASIC’s investigation into the collapse of Trio Capital is continuing.
