Mr Karl Suleman was today found guilty in the Downing Centre District Court on four fraud charges brought by the Australian Securities and Investments Commission.

The fraud charges resulted from an ASIC investigation into Karl Suleman Enterprizes Pty Ltd (KSE) concerning the operation of an unregistered managed investment scheme and other businesses in the Froggy Group of companies.

The charges concerned the provision of a false bank statement and making false statements to finance brokers with the intention of obtaining finance.

Mr Suleman was refused bail by Judge Peter Berman and the matter will come before the NSW District Court on 2 April 2004 for submissions on sentencing.

Mr Suleman was a director of KSE and all the companies within the Froggy Group, including Froggy Holdings Pty Ltd.

During the two-week trial, the prosecution alleged that around 11 December 2000, Mr Suleman used a false bank statement, which he gave to a finance broker, with the intention of obtaining finance in the amount of $355,000 to purchase a Ferrari Spider 355.

The prosecution also alleged that between 1 March 2001 and 16 October 2001, on three separate occasions, Mr Suleman made false statements to finance brokers with the intention of obtaining finance to purchase a $3.3 million Princess Motor yacht and a $360,000 Ferrari Modena.

KSE was placed into voluntary administration on 12 November 2001, soon after ASIC commenced proceedings before the NSW Supreme Court to close down an unregistered managed investment scheme operated by the company. KSE and several related companies within the Froggy Group have since been placed into liquidation. On 22 July 2002 Mr Suleman was ordered to pay $17.4 million in damages to KSE. On 30 July 2002 Mr Suleman was declared bankrupt.

The matter was prosecuted by the Commonwealth Director of Public Prosecutions. ASIC's investigation is continuing.