On 21 May 2021, former managing director of Global Merces Funds Management Ltd (in liquidation) (Global Merces), Ms Holly Marie Grofski, of Cranley, Queensland, appeared in Brisbane Magistrates Court on criminal charges.

Ms Grofski, who was the managing director of Global Merces before it was wound up following a Federal Court decision and ASIC investigation (MR-20-022), has been charged with:

• one count of dishonestly or recklessly failing to exercise her powers and discharge her duties (section 184(1) of the Corporations Act. Maximum sentence of imprisonment of 15 years);
• one count of providing false information to the auditors of Global Merces (section 1309(1) and s1311(1) of the Corporations Act. Maximum sentence of imprisonment of five years);
• one count of engaging in conduct resulting in the falsification of books regarding the affairs of Global Merces (section 1307(1) and s1311(1) of the Corporations Act. Maximum sentence of imprisonment of five years).

The alleged offending occurred in November 2019.

Ms Grofski was released on bail and the matter adjourned to 16 July 2021 before the Brisbane Magistrates court for further mention.

The Commonwealth Director of Public Prosecutions is prosecuting the matter after a brief and referral from ASIC. 

Background

On 21 January 2020, ASIC suspended the Australian financial service (AFS) licence of Global Merces for a period of six months (MR-20-012).

On 31 January 2020, following an application by ASIC, the Federal Court ordered Global Merces be wound up on just and equitable grounds (MR-20-022).

On 20 July 2020, ASIC cancelled the AFS licence of Global Merces (MR 20-181).

Editor’s note:

On 16 July 2021, the matter was adjourned for mention on 27 August 2021 in the Brisbane Magistrates Court.

Editor’s note 2:

On 27 August 2021, the matter was adjourned for further mention on 1 October 2021 in the Brisbane Magistrates Court.

Editor's note 3:

On 1 October 2021, the matter was adjourned for further mention on 19 November 2021 in the Brisbane Magistrates Court.

Editor's note 4:

On 18 November 2021, the matter was adjourned for further mention on 10 December 2021 in the Brisbane Magistrates Court.

Editor's note 5:

On 10 December 2021, the matter was adjourned for further mention on 18 February 2022 in the Brisbane Magistrates Court.

Editor's note 6:

On 18 February 2022, the matter was adjourned for further mention on 1 April 2022 in the Brisbane Magistrates Court.

Editor’s note 7:

On 1 April 2022, the matter was adjourned for further mention on 6 May 2022 in the Brisbane Magistrates Court.

Editor's note 8:

On 6 May 2022, the court hearing was vacated with a date for further hearing to be fixed.

Editor's note 9:

On 28 October 2021, Ms Grofski was indicted on two charges:

• one count of providing false information to the auditors of Global Merces (section 1309(1) and s1311(1) of the Corporations Act).
• one count of engaging in conduct resulting in the falsification of books regarding the affairs of Global Merces (section 1307(1) and s1311(1) of the Corporations Act). 

The matter has been listed for mention in the Brisbane District Court on 24 November 2022.

Editor’s note 10:

The mention listed for 24 November 2022 was delisted administratively and the matter has been listed for sentencing on 23 March 2023 in the District Court at Brisbane.

Editor's note 11:

The sentencing hearing set down for 23 March 2023 in the District Court at Brisbane has been adjourned by consent to 23 May 2023.