On 7 November 2019, as part of the Commonwealth’s Serious Financial Crime Taskforce’s efforts, ASIC filed an application with the Federal Court seeking an inquiry into the conduct of Mr Jason Bettles, a registered liquidator and Partner at Worrells Solvency and Accounting, Gold Coast.

Mr Bettles was the liquidator of the Members Alliance Group of companies from 22 July 2016 until his resignation on 13 July 2017. ASIC has requested the Federal Court inquire into Mr Bettles conduct during his administration of those particular companies as ASIC is concerned Mr Bettles:

• failed to maintain independence;
• did not exercise the degree of care and diligence required of a liquidator; and
• failed to discharge his obligations as a liquidator.

 The application is made under section 45-1 of the Insolvency Practice Schedule (Corporations), being Schedule 2 to the Corporations Act 2001 (Cth).  

Background

ASIC is a member of the ATO-led Serious Financial Crime Taskforce. The Taskforce brings together the knowledge, resources and experience of relevant law enforcement and regulatory agencies to identify and address the most serious and complex forms of financial crime.

Since the Taskforce was established on 1 July 2015, more than 1,173 audits have been completed up to and including 30 September 2019. Liabilities have been raised in excess of $909 million, $319 million in cash collected and 6 successful convictions have been handed down.

Editor's note:

On 4 March 2020, the Federal Court made orders about the filing of evidence and set the matter down for a further case management hearing on 14 July 2020.

Editor's note 2:

On 27 July 2020, the Federal Court heard an application by the Respondent to strike out ASIC’s Concise Statement and Supplementary Concise Statement. The Federal Court has reserved its decision.  

Editor's note 3:

On 28 October 2020, the Federal Court decided to set aside ASIC’s Concise Statement and Supplementary Concise Statement and ordered that ASIC file and serve a Statement of Claim in the proceeding within 28 days.

Editor’s note 4:

On 24 November 2020 and 21 December 2020 the Federal Court granted ASIC extensions to file its Statement of Claim. ASIC filed its Statement of Claim on 19 February 2021. Download the statement of claim. Mr Bettles has until 28 May 2021 to file his defence. The matter has been listed for a case management hearing on 31 May 2021.

Editor’s note 5:

On 14 May 2021, the Federal Court ordered that ASIC pay the defendant’s costs of and incidental to the strike-out application. The enforcement of this costs order is to be deferred until the final resolution of the matter.

Editor's note 6:

A case management hearing has been set for 11 October 2021.

Editor's note 7:

On 2 September 2021, the Court ordered that the 11 October 2021 case management hearing be vacated, and a new case management hearing has been scheduled for 15 November 2021.

Editor's note 8:

On 19 November 2021, the Federal Court listed the matter for a 10 day trial commencing on 6 June 2022. The court also ordered the parties participate in any mediation as agreed between them by 31 March 2022.

Editor's note 9:

On 15 December 2021, the Federal Court listed the matter for a case management hearing on 7 April 2022.

Editor's note 10:

On 7 April 2022, the Federal Court made orders about the filing of amended pleadings, discovery, and the timetable for the matter to progress to trial on 6 June 2022. The Federal Court also ordered that the questions of liability be heard separately to the question of remedies and sanction.

Editor's note 11:

On 16 June 2022, the Federal Court Inquiry into the conduct of Mr Jason Bettles concluded. On the final day of the Inquiry, the Federal Court made orders for the parties to file written closing submissions, with oral closing submissions to be heard on 4 and 5 August 2022.

Editor's note 12:

On 4 and 5 August 2022, oral closing submissions were heard in the Federal Court Inquiry into the conduct of Mr Jason Bettles.

Editor's note 13:

In August 2023, the Federal Court dismissed ASIC’s case against Mr Jason Bettles (23-225MR).