The maximum five-year ban on managing companies has been handed to a former director, after his involvement in 14 separate failed companies.
ASIC said in a statement that it had banned Sydney man Daniel McSweeny for five years, stating that the 14 companies under his control all went into liquidation within the space of just 13 months.
The companies regulator said that the liquidations all took place between 21 August 2014 and 8 September 2015, and collectively owed creditors around $9.8 million.
All had been used to operate financial services businesses, it said.
“ASIC found that Mr McSweeny had fraudulently misappropriated company money; used the company structure for his own dishonest means; showed a complete disregard of his director duties; failed to observe requirements to lodge documents with the Australian Taxation Office; failed to ensure the companies complied with their obligation to keep written financial records; and failed to prevent the companies from trading while possibly insolvent,” it said in the statement.
Liquidators for four of the companies were provided with funding from the Assetless Administration Fund for the preparation of supplementary reports, ASIC said, which it used to justify the disqualification.
Mr McSweeny’s ban took effect from 2 May this year, and will run until 1 May 2024.
ASIC noted that it has the power, under the Corporations Act, to disqualify someone from managing companies if they have been an officer in at least two companies that are wound up and unable to pay their debts, within a seven-year period.
The companies of which Mr McSweeny was a former director, according to ASIC, were:
- Taavla Capital Pty Limited A.C.N. 139 644 429
- Prettoria Capital Pty Limited A.C.N. 143 300 609
- Iugis Capital Pty Limited A.C.N. 136 702 639
- Wealth Achievers Services Australia A.C.N. 130 189 909
- Constantia Capital Pty Limited A.C.N. 143 526 434
- FF&I Holdings Pty Limited A.C.N. 124 345 348
- Security Chips Pty Ltd A.C.N. 600 199 255
- Kimbriki Capital Pty Ltd A.C.N. 133 864 883
- Kimbriki Capital Trading Pty Ltd A.C.N. 133 864 892
- Wealth Achievers Services Group Pty Ltd A.C.N. 162 529 375
- Mondo Oro Pty Ltd A.C.N. 120 262 348
- The Village Accountant Australia Pty Ltd A.C.N. 143 264 699
- Wealth Achievers Services Pty Ltd A.C.N. 127 843 056
- Logiplan Financial Services Pty Ltd A.C.N 002 663 210
Adam Zuchetti is the editor of My Business, and has steered the publication’s editorial direction since early 2016.