The corporate regulator is looking to force a Sydney-based financial planner into liquidation over \u201cserious concerns\u201d about how it handled $17.4 million of investors’ funds.<\/p>\n
The Australian Securities and Investments Commission is seeking an independent liquidator for Capital Guard at the NSW Supreme Court.<\/p>\n
It comes amid concerns the firm promoted fake bonds to investors, provided false information to its auditor and that only a small proportion of the $17.4 million it raised remains in known Capital Guard accounts and platforms.<\/p>\n
Capital Guard\u2019s financial services licence was cancelled late last month.<\/p>\n
ASIC found the company promoted a fake Macquarie Bank bond, made misleading statements on its website and engaged in serious misconduct.<\/p>\n
\u201cASIC is seeking the appointment of an independent liquidator to take control of Capital Guard, investigate its affairs, and preserve and recover assets where possible,\u201d ASIC said.<\/p>\n
\u201cASIC has taken this action because it has serious concerns about Capital Guard\u2019s management, the handling of investor funds, and whether particular bonds offered to investors existed as represented.\u201d<\/p>\n
The company received the funds from about 80 investors.<\/p>\n
The court action follows ASIC finding Capital Guard received at least $100,000 for a bond that did not exist.<\/p>\n
Capital Guard also encouraged and allowed investment into the non-existent bond by arranging payment and documentation for the transactions, according to ASIC.<\/p>\n
This comes despite Capital Guard marketing itself as \u201ca team of dedicated financial experts with a passion for helping individuals and businesses achieve their growth potential\u201d.<\/p>\n
ASIC said that investor funds were used in ways that were \u201cinconsistent\u201d with how the firm told investors their money was being invested.<\/p>\n
The company also had a breakdown in its governance and management alongside failing to comply with regulatory and reporting obligations, ASIC said.<\/p>\n
Since its licence was revoked last week, Capital Guard has shut down its website.<\/p>\n
The matter will be heard on July 20 and ASIC\u2019s investigation into the company continues.<\/p>\n","protected":false},"excerpt":{"rendered":"The corporate regulator is looking to force a Sydney-based financial planner into liquidation over \u201cserious concerns\u201d about how…\n","protected":false},"author":2,"featured_media":51572,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[12363,36417,36415,36416,247],"class_list":["post-51571","post","type-post","status-publish","format-standard","has-post-thumbnail","category-sydney","tag-asic","tag-capital-guard","tag-corporate-watchdog","tag-financial-crimes","tag-sydney"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/australia\/wp-json\/wp\/v2\/posts\/51571","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/australia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/australia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/australia\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/australia\/wp-json\/wp\/v2\/comments?post=51571"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/australia\/wp-json\/wp\/v2\/posts\/51571\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/australia\/wp-json\/wp\/v2\/media\/51572"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/australia\/wp-json\/wp\/v2\/media?parent=51571"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/australia\/wp-json\/wp\/v2\/categories?post=51571"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/australia\/wp-json\/wp\/v2\/tags?post=51571"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}