The Australian Securities and Investments Commission (ASIC) today obtained consent orders in the New South Wales Supreme Court ordering that Mr Karl Suleman and Mrs Vivian Suleman pay compensation of over $20 million to Karl Suleman Enterprizes Pty Ltd.

The Court also disqualified Mrs Vivian Suleman from managing a corporation for 25 years, after finding that she operated a managed investment scheme that should have been registered, and carried on a securities business without holding a dealers licence.

The Supreme Court ordered that:

• Mr Karl Suleman compensate Karl Suleman Enterprizes Pty Ltd to the sum of $17,463,839 for breaches of directors duties;
• Mrs Vivian Suleman compensate Karl Suleman Enterprizes Pty Ltd to the sum of $2,571,022; and
• that Mrs and Mrs Suleman were jointly and severally liable for $2,412,070 of the above compensation orders.

Further damages against the parties may be claimed by the liquidator of Karl Suleman Enterprizes Pty Ltd and the liquidator of the Froggy Group of Companies at a later date.

The Court also granted injunctions restraining Vivian Suleman from operating an unregistered managed investment scheme (namely the Karl Suleman Enterprises Pty Ltd scheme or a substantially similar scheme) and from carrying on a securities business.

The Court made similar declaration and restraining orders against Karl Suleman on 6 May 2002.