ASIC media releases are point-in-time statements. Please note the date of issue and use the internal search function on the site to check for other media releases on the same or related matters.

Thursday 10 November 2016

16-386MR Former Gold Coast company director jailed after pleading guilty to dishonestly dealing with millions of dollars of company funds

Following an ASIC investigation, Mr. Frederick Leslie Hansen, formerly of Clear Island Waters on the Gold Coast, has today been sentenced in the Southport District Court to 4 years imprisonment.

On 14 October 2016, Mr. Hansen pleaded guilty to two counts of dishonestly using his position as a director of Global Rule Pty Ltd (Global Rule) and was remanded into custody.

ASIC alleged that between October 2008 and September 2010, Mr Hansen dishonestly used his position as director of Global Rule with the intention of causing a detriment to the company. (refer: 14-170MR)

The defendant knowingly caused an unrelated personal debt in the amount of $8,423,333 million to be incurred by Global Rule. During the period, the defendant then used $5,721,424 of Global Rule investors' funds to commence repaying the debt. 

Mr. Hansen will be eligible for parole after serving 2 years imprisonment, taking into account time already served in custody.

ASIC Commissioner Greg Tanzer said: "Mr Hansen's actions betrayed the trust of his investors and caused them significant hardship. Today's decision shows that this type of behaviour will be met with serious consequences."

The matter was prosecuted by the Commonwealth Director of Public Prosecutions.

Background

Global Rule operated an unregistered managed investment scheme on the Gold Coast. Investment in Global Rule was made available by various scheme promoters located in Queensland and New South Wales. 

Global Rule was described as a company that created wealth, provided outstanding financial benefits to its partners and delivered humanitarian aid throughout Australia. What it offered was for investors to participate in an unsecured loan agreement that would supposedly return 1.8% per month (21.6% per annum) in interest payments.

Investment was available to individuals, trusts, businesses and self-managed superannuation funds. 

The recent criminal proceedings against Mr. Hansen follows earlier ASIC proceeding brought in the Supreme Court of Queensland appointing Mr Michael McCann, of Grant Thornton, as liquidator of Global Rule Pty Ltd and as trustee of the Global Rule Trust. 

The Liquidators of Global Rule Pty Ltd reported that it is estimated that around 170 individuals loaned money to Global Rule and approximately $16.3 million was owed to lenders.

Last updated: 30/03/2021 09:33