Yat Nam (April) Yuen, who held various roles at collapsed stockbroking firm BBY Limited (BBY) including Manager (Strategy), has been sentenced for aiding and abetting BBY to engage in dishonest conduct.

Following her guilty pleas to two offences contrary to sections 1041G(1) of the Corporations Act and section 11.2 of the Commonwealth Criminal Code, Ms Yuen was convicted and received an aggregate sentence of 2 years and 6 months imprisonment, to be served by way of an intensive correction order.

The conditions of the intensive correction order include 100 hours of community service.

ASIC Deputy Chair Sarah Court said, ‘ASIC is committed to investigating dishonest conduct in the licensed financial services industry and prosecuting such cases.’

In June 2014, Ms Yuen instructed the transfer of $6,800,000 out of BBY’s Futures client segregated account, a client money account used for futures clients, to fund a margin payment owed by BBY to ASX Clear Pty Ltd.

Similarly, in March 2015, Ms Yuen caused the transfer of $1,600,000 of client money out of BBY’s Saxo Buffer account, a client money account, and $350,000 out of BBY’s Futures client segregated account, also a client money account, to fund a corporate payment owed by BBY.

The above transfers were in breach of BBY’s obligation to hold that client money on trust.

The transfers were not repaid to the relevant client money accounts and contributed to the client money shortfalls on BBY’s liquidation.

The sentence took into account Ms Yuen’s plea and other mitigating factors resulting in a substantial discount.

As a result of her convictions, Ms Yuen will automatically be disqualified from managing corporations for five years and will be unable to be involved in the business of a market participant in connection with securities and futures markets.

The matter was prosecuted by the Commonwealth Director of Public Prosecutions after a referral by ASIC.

Background

At the time of the offences, an offence for contravening section 1041G(1) of the Corporations Act 2001 (Cth) carried a maximum penalty for an individual of 10 years’ imprisonment or a fine of 4,500 penalty units. A person who aids, abets, counsels or procures that offence is taken to have committed the offence and is liable to the same punishment (section 11.2 of the Criminal Code (Cth)).

On 6 February 2024, Ms Yuen pleaded guilty in the Downing Centre Local Court to the two offences (23-318MR).

BBY was a former stockbroking and financial services business. It was placed into voluntary administration on 17 May 2015 and in liquidation on 22 June 2015 with significant client shortfalls.

ASIC suspended BBY’s AFS licence in May 2015. That suspension remained in place until its licence was cancelled in June 2021.

ASIC’s investigation in relation to BBY has also resulted in the conviction and sentence of BBY’s former Head of Operations Fiona Bilton (23-156MR) and the charging of former BBY CEO Arunesh Maharaj (23-273MR) on matters unrelated to Ms Yuen’s sentence.

ASIC’s investigation into BBY is ongoing.