Former Power Loan franchisee Russell Barry Collins-McBride appeared in the Adelaide Magistrates Court on Friday to face Westpoint-related charges brought by ASIC.
He was charged with aiding, abetting, counselling and procuring Power Financial Planning to deal in financial products totalling in excess of $8 million without an Australian Financial Services License (AFSL), which is in contravention of the Corporations Act.
ASIC said the charges arose as a result of its investigation into the conduct of companies associated with National Trading and Finance Group, the proprietor of the business name Power Loan, which came to the attention of the regulator through its broader investigation into the collapse of the Westpoint Group of companies.
It is alleged that Power Financial Planning entered into agreements with Kebbel Securities and Kebbel Victoria relating to the marketing of financial products.
These included Westpoint promissory notes and interests in Prime Retirement and Aged Care Property Trust, Kebbel Development Capital Fund No. 2 – Mount Gilead Trust and Kebbel Development Capital Fund No. 3 – The Riverside Pier Trust.
Collins-McBride became a Power Loan franchisee, operating a business at the Marion Shopping Centre, from about March 2005.
Potential clients were advised that if they invested the proceeds of a loan secured by a mortgage over their home in an investment product that earned more interest than that payable on the loan they could create wealth, ASIC said.
The corporate watchdog also said Keith Jason Rowntree was convicted on Friday in the New South Wales District Court on a WestPoint-related charge.
He was ordered to complete 80 hours of community service and was disqualified from managing corporations for five years.
Rowntree had pleaded guilty on 2 December 2008 to the charge of providing financial advice without holding an AFSL.
