ASIC has disqualified Mr Daniel McSweeny of Zetland, NSW from managing companies for the maximum period of five years following his involvement in 14 failed companies.

Mr McSweeny was a former director of:

• Taavla Capital Pty Limited A.C.N. 139 644 429;
• Prettoria Capital Pty Limited A.C.N. 143 300 609;
• Iugis Capital Pty Limited A.C.N. 136 702 639;
• Wealth Achievers Services Australia A.C.N. 130 189 909;
• Constantia Capital Pty Limited A.C.N. 143 526 434;
• FF&I Holdings Pty Limited A.C.N. 124 345 348;
• Security Chips Pty Ltd A.C.N. 600 199 255;
• Kimbriki Capital Pty Ltd A.C.N. 133 864 883;
• Kimbriki Capital Trading Pty Ltd A.C.N. 133 864 892;
• Wealth Achievers Services Group Pty Ltd A.C.N. 162 529 375;
• Mondo Oro Pty Ltd A.C.N. 120 262 348;
• The Village Accountant Australia Pty Ltd A.C.N. 143 264 699;
• Wealth Achievers Services Pty Ltd A.C.N. 127 843 056; and
• Logiplan Financial Services Pty Ltd A.C.N 002 663 210;

Mr McSweeney used the companies to operate a financial services business. The companies were placed into liquidation between 21 August 2014 and 8 September 2015.

The total amount of debts owed by the 14 companies to creditors amounted to approximately $9.8 million.

ASIC found that Mr McSweeny:

• had fraudulently misappropriated company money;
• used the company structure for his own dishonest means;
• showed a complete disregard of his director duties;
• failed to observe requirements to lodge documents with the Australian Taxation Office;
• failed to ensure the companies complied with their obligation to keep written financial records; and
• failed to prevent the companies from trading while possibly insolvent.

In reaching its decision, ASIC relied on reports that were lodged by the liquidators of the failed companies. ASIC also provided liquidators of Taavla Capital Pty Limited, Prettoria Capital Pty Limited, Iugis Capital Pty Limited and Wealth Achievers Services Australian Pty Ltd with funding from the Assetless Administration Fund (AAF) to prepare supplementary reports that were used to disqualify Mr McSweeny.

Mr McSweeny’s disqualification took effect from 2 May 2019 and extends to 1 May 2024.

Background

Section 206F of the Corporations Act allows ASIC to disqualify a person from managing corporations for up to five years if, within a seven-year period, the person was an officer of two or more companies, and those companies were wound up and a liquidator provides a report to ASIC about the company’s inability to pay its debts.

ASIC also maintains a 'Banned and Disqualified Persons' register that provides information about people who have been disqualified from:

• involvement in the management of a corporation;
• auditing self-managed superannuation funds (SMSFs); or
• practicing in the financial services of credit industry.

Following a separate ASIC investigation, Mr McSweeny has been charged with 20 dishonesty offences and one offence of falsifying books while a company director (refer: 18-384MR). The matter is next scheduled for mention on 5 July 2019 and is being prosecuted by the Commonwealth Director of Public Prosecutions.

More information about the Assetless Administration Fund is here.