ASIC has initiated legal proceedings against four former Queensland directors who dealt in financial products, including Westpoint promissory notes, without an Australian financial services licence (AFSL).
The directors, Barry William Silver, of Arundel, Robert Peers Button, of Currumbin Waters, Mark Pirimona Shepherd, of Benowa Waters, and Stephen Ashley Sneddon, of Underwood, have appeared in the Southport Magistrates Court charged with offences under the Corporations Act 2001.
The corporate regulator alleges, that between 13 October 2003 and 28 November 2005, the Lancer Group Pty Ltd (now known as ACN 098 284 158 Pty Ltd) carried on a business without holding the required licence.
At the time of the alleged offences, Silver was the Lancer Group's sole director and faces charges of aiding, abetting, counselling and procuring the company to carry on a financial services business, including dealing in Westpoint promissory notes.
Button, Shepherd and Sneddon are also charged with aiding, abetting, counselling and procuring their respective companies to provide a financial service, on behalf of the Lancer Group.
At the time, ASIC alleges the three men were engaged by the Lancer Group to meet with clients and present a 'personal financial strategy' including potential investments.
The charges relate to investments totalling $816,000 made by nine investors in promissory notes issued by various Westpoint Mezzanine companies including York Street Mezzanine Pty Ltd, Ann Street Mezzanine Pty Ltd, Emu Brewery Mezzanine Pty Ltd, Mount Street Mezzanine Pty Ltd and Bayshore Mezzanine Pty Ltd.
These matters came to ASIC's attention through its broader investigation into the collapse of the Westpoint Group of companies and through complaints received from the public.
The matters of Button, Sneddon and Shepherd were adjourned until Tuesday 21 April 2009.
The matter concerning Silver returns to the Southport Magistrates Court on Tuesday 5 May 2009. All four men were granted bail on their own undertaking.
The Commonwealth Director of Public Prosecutions is prosecuting the matter.
