ASIC has permanently banned Ms Jane McAllan, of Boggabri, New South Wales, from providing financial services.

Ms McAllan, a former authorised representative of Northern Inland Credit Union Limited (NICU), was banned after an investigation by ASIC found she had been ‘kite-flying’ cheques between a Commonwealth Bank of Australia (CBA) account and a NICU business account.

Ms McAllan was a signatory to both accounts and it is estimated she deposited over 1000 cheques. Ms McAllan then withdrew money from both accounts, without having sufficient funds to do so.

ASIC alleged as of March 2006, Ms McAllan had overdrawn her NICU account in the sum of $532,804.52.

ASIC commenced its investigation into the conduct of Ms McAllan after a breach notification was filed by NICU. Her conduct was also reported to the New South Wales Police.

Ms McAllan has the right to lodge an application for review of ASIC’s decision with the Administrative Appeals Tribunal.

Background

The ‘kite-flying’ of cheques involved Ms McAllan depositing cheques simultaneously in her NICU and CBA accounts. Using her position as the authorised representative of the NICU agency, Ms McAllan drew funds on her NICU account, avoiding the requirement for the deposited cheques to be cleared before payment could be made.

Ms McAllan ceased employment with NICU’s branch in Boggabri on 31 January 2006.