ASIC has moved to shut down unlicensed financial services business A One Multi Services Pty Ltd (A One Multi), which is suspected to be engaging in unlawful activity.
ASIC successfully obtained interim orders and injunctions from the Federal Court in Queensland against A One Multi and its Gold Coast-based directors Aryn Hala and Heidi Walters to protect investors.
It is alleged Mr Hala represents to investors that he can help them invest their superannuation in a self-managed superannuation fund (SMSF) and then loan the money in their SMSF to A One Multi. ASIC alleges Mr Hala told investors that they would receive annual investment returns of over 20%.
Between 1 January 2019 to 30 June 2021, more than 60 consumers deposited approximately $25 million into A One Multi’s accounts. ASIC alleges that Mr Hala has used more than $5.7 million of A One Multi’s money for his and Ms Walters’ personal benefit, including through acquiring real property and luxury vehicles in their names. In addition, more than $2.4 million has been transferred from A One Multi to buy crypto-assets.
On 21 October 2021, the Court found there was a need to protect the investors, and potentially others, and made the following orders:
- an order putting A One Multi into the receivership of John Ross Lindholm and Timothy James Michael (the receivers);
- asset preservation orders against Mr Hala, Ms Walters and A One Multi;
- an order requiring Mr Hala to transfer crypto-assets in his name to the receivers;
- orders requiring the disclosure of information to ASIC against each of Mr Hala, Ms Walters and A One Multi, including in relation to the crypto-asset holding;
- travel restraint orders for Mr Hala and Ms Walters.
On 25 October 2021, the first tranche of crypto-assets held in Mr Hala's name was transferred to the receivers.
On 1 November 2021, the Court made further orders requiring the defendants to attend an ASIC office to facilitate the transfer of remaining crypto-assets held or controlled by the defendants to the receivers.
The orders were made pending a final hearing into the conduct of Mr Hala, Ms Walters and A One Multi.
ASIC moved swiftly to obtain the orders given ease with which crypto-assets can be transferred or transacted.
ASIC’s investigation into Mr Hala, Ms Walters and A One Multi remains ongoing.
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22 October ex parte orders and judgment
Background
These proceedings form part of ASIC’s work to protect consumers and take enforcement action where we suspect unlicensed financial advice. Financial advice must only be provided by qualified and licensed financial advisers or financial counsellors, not by individuals or corporations who neither hold an AFS licence, nor are authorised representatives of an AFS licensee.
Crypto-assets are highly speculative investments. ASIC urges Australians to invest with caution. The platforms where you buy and sell crypto-assets may not be regulated by ASIC. This means you may not be protected if the platform fails or is hacked
ASIC's Report 575 SMSFs: Improving the quality of advice and member experiences (REP 575) provided a comprehensive overview of SMSF market characteristics and member experiences. The report also identified several indicators that suggested when an SMSF may not be appropriate for a client and included practical tips for advice providers to improve the quality of SMSF advice they provide to clients. Investors should only take financial advice from licensed financial advisers, including advice relating to their SMSFs.
Moneysmart.gov.au has information to help consumers with SMSFs and cryptocurrencies, and advice on how to spot superannuation scams.
Editor’s note:
A case management hearing has been listed for 10 June 2022.
Editor's note 2:
The case management hearing for 10 June 2022 was adjourned until 1 August 2022.
Editor’s note 3:
The case management hearing listed for 1 August 2022 was vacated. No future date for this matter has been listed.
Editor’s note 4:
On 3 March 2023, the proceedings against the third defendant Ms Heidi Walters were discontinued by consent.
Editor’s note 5:
On 23 May 2023, the receivers filed an application in relation to their costs which is listed for hearing on Monday, 23 October 2023.
Editor’s note 6:
On 14 August 2023, ASIC filed an application seeking leave to file an amended originating process and orders that the receiverships over the second defendant be discharged, which is listed for hearing on Monday, 23 October 2023.
Editor’s note 7:
On 23 October 2023, the Court granted leave for ASIC to amend its originating process.
Editor’s note 8:
On 23 October 2023, the receivers’ application in relation to their costs was part heard and adjourned to a date which is yet to be fixed.
Editor’s note 9:
On 25 October 2023, the proceedings against the second defendant Mr Aryn Hala were discontinued by consent.
Editor's note 10:
On 23 November 2023, the receivers’ application in relation to their costs was adjourned to Friday, 8 March 2024.
Editor's note 11:
On 7 March 2024, the Court listed a case management hearing for 29 July 2024 in relation to ASIC’s amended originating process.
Editor's note 12:
On 8 March 2024, his Honour Justice Derrington heard the receivers’ application in relation to their costs. Judgment is reserved.