A man has been charged with dishonest conduct and arrested over a fraudulent investment scheme.
Mudasir Mohammed Naseeruddin, a former director of liquidated firms Secure Investments and Aquila Group, was charged in the Melbourne Magistrates Court on Thursday with seven counts of dishonest conduct.
Mr Naseeruddin was also charged with two counts of failing to exercise his power as a director and discharge his duty in good faith under the Corporations Act.
ASIC has alleged that Mr Naseeruddin dishonestly obtained superannuation funds from investors based on false representations, including representations that the funds would be invested in property development.
The regulator also alleged that Mr Naseeruddin misused his position as a director of Secure Investments for his own benefit by using funds invested with the company to purchase shares for himself in a security company.
The director was said to have raised at least $2.4 million from 28 investors through Secure Investments, by encouraging investors to roll over their superannuation funds into new SMSFs, and then invest the SMSF monies into the company by way of a loan.
ASIC has also claimed Mr Naseeruddin raised $250,000 through Aquila, by pushing Indigenous investors to do the same, rolling over super funds into SMSFs and then investing via a loan to the firm.
Each offence currently carries a maximum penalty of up to 15 years imprisonment.
ASIC commenced civil proceedings and obtained urgent interim orders in the Federal Court against Mr Naseeruddin, Secure Investments and Aquila in May due to concerns of misleading and deceptive conduct and the operation of an illegal managed investment scheme.
In October, the regulator obtained orders to wind up Secure Investments and Aquila, as well as declarations that Mr Naseeruddin had operated a financial services business without the appropriate licence.
The matter is being prosecuted by the Commonwealth Director of Public Prosecutions after a referral from ASIC.
The matter was adjourned to the Melbourne Magistrates’ Court for committal mention hearing on 6 April.
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
You can contact her on [email protected].
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