The Australian Securities and Investment Commission (ASIC) has permanently banned Mr Piet Cornelius Walters, of Longford in Tasmania, from providing any financial services.
ASIC found that Mr Walters, formerly of Malanda, Queensland, had operated an unregistered managed investment scheme and carried on a securities business, namely a managed investment scheme, without holding a dealers licence. Mr Walters had also operated a financial services business without an Australian financial services licence and carried on an investment advice business without a licence.
ASIC also found that Mr Walters misled or deceived persons to believe he was acting as a representative of ABN AMRO Morgans Ltd (ABN AMRO Morgans) when offering investments in the managed investment scheme operated by the company Drury Management Pty Ltd (Drury Management).
ASIC further found that Mr Walters may not comply with financial services laws in the future.
This decision follows an earlier civil action taken by ASIC against Mr Walters. On 29 March 2004, the Supreme Court of Queensland in Cairns found, amongst other things, that Mr Walters operated an unregistered managed investment scheme. The Supreme Court placed the scheme, Drury Management and Ransom House Pty Ltd under liquidation.
Mr Walters has the right to lodge an application for a review of ASIC’s decision with the Administrative Appeals Tribunal.
Background
Mr Walters and Mr Mark Samuel Evans operated an accounting practice, trading as Drurys which had offices in Malanda, Atherton and Cairns. From August 1999 to September 2002, they obtained loans from private investors who were guaranteed returns in the range of 12 to 15 per cent per annum (the scheme). An interim receiver was appointed in September 2002, at which time a total of 118 investors had nearly $8 million invested through the scheme. Many investors entered into these unsecured loans by way of Promissory Note and Deed.
Mr Walters was issued with a proper authority from ABN AMRO Morgans on 30 August 1999 and operated as a representative in Malanda. The authority was cancelled on 28 June 2002. The scheme was not associated with ABN AMRO Morgans.