The Federal Court has dismissed ASIC’s case against Mr Jason Bettles, a registered liquidator and Partner at Worrells Solvency and Accounting.
Mr Bettles was the liquidator of the Members Alliance Group of companies from 22 July 2016 until his resignation on 13 July 2017. In November 2019, ASIC, as part of the Serious Financial Crime Taskforce (SFCT), filed an application requesting a court inquiry into Mr Bettles’ conduct. This inquiry followed concerns Mr Bettles failed to discharge his obligations as a liquidator, and failed to act independently and with a degree of care and diligence required of a liquidator, leading to the improper transfer of Members Alliance Group assets (19-306MR).
Following an eight-day trial, the Court found that ASIC did not make its case that Mr Bettles:
- was involved in the development and implementation of a complex strategy to transfer assets and divert income streams from various members of the Members Alliance Group to the detriment of creditors,
- contravened his duties as an officer of a company, and
- demonstrated egregious departure from the standards of propriety, independence, and care and diligence required of a registered liquidator.
ASIC Deputy Chair Sarah Court said, ‘ASIC took on this case as part of our work with the Serious Financial Crime Taskforce. Taking action against suspected phoenixing remains a key priority of the Taskforce and we will carefully review the judgment.’
ASIC has 28 days to lodge an appeal with the Full Federal Court.
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Background
The Members Alliance and Benchmark groups operated property investment vehicles on the Gold Coast, offering financial advice to retail investors. In July 2016, eighteen group companies were placed into liquidation with a $26 million debt owing to the ATO.
On 10 September 2021, four former company officers and one lawyer associated with Members Alliance and Benchmark Groups faced 72 criminal charges (21-242MR).
ASIC filed this application with the Federal Court seeking an inquiry into the conduct of Mr Bettles as part of the ATO-led Serious Financial Crime Taskforce (SFCT).
The SFCT is a joint-agency taskforce which brings together the knowledge, resources and experience of relevant law enforcement and regulatory agencies to address the most serious forms of financial crime.
The Serious Financial Crime Taskforce (SFCT) started operation on 1 July 2015. From this date until 30 June 2023, the Taskforce has progressed cases that have resulted in:
- completion of 1,851 audits and reviews
- conviction and sentencing of 27 people
- raised liabilities of $1.855 billion
- collected $730 million.
Suspected phoenix activity can be reported to ASIC or the ATO by calling 1800 060 062, online at the ATO website or by emailing PhoenixReferrals@ATO.gov.au.
You can download the Illegal phoenix activity fact sheet developed by the SFCT to understand the warning signs and the types of criminals involved.