The Australian Securities and Investment Commission (Asic) has banned Daniel McSweeny from managing companies for the maximum period of five years after his involvement in 14 failed businesses.
McSweeney used the companies to operate a financial services business.
The companies were placed into liquidation between 21 August 2014 and 8 September 2015.
The total amount of debts owed by the 14 companies to creditors amounted to around A$9.8 million (£5.3m, $6.8m, €6m).
McSweeny was a former director of:
• Taavla Capital;
• Prettoria Capital;
• Iugis Capital;
• Wealth Achievers Services Australia;
• Constantia Capital;
• FF&I Holdings;
• Security Chips;
• Kimbriki Capital;
• Kimbriki Capital;
• Wealth Achievers Services Group;
• Mondo Oro;
• The Village Accountant Australia;
• Wealth Achievers Services; and
• Logiplan Financial Services.
Regulator’s investigation
Asic found McSweeny had fraudulently misappropriated company money, used the company structure for his own dishonest means and showed a complete disregard of his director duties.
He was also found to have failed to observe requirements to lodge documents with the Australian Taxation Office, failed to ensure the companies complied with their obligation to keep written financial records and failed to prevent the companies from trading while possibly insolvent.
In reaching its decision, Asic relied on reports that were lodged by the liquidators of the failed companies.
ASIC also provided liquidators of Taavla Capital, Prettoria Capital, Iugis Capital and Wealth Achievers Services Australian with funding from the Assetless Administration Fund (AAF) to prepare supplementary reports that were used to disqualify McSweeny.
McSweeny’s disqualification took effect from 2 May 2019 and extends to 1 May 2024.
Separate investigation
Following a separate Asic investigation, McSweeny has been charged with 20 dishonesty offences and one offence of falsifying books while a company director.
The matter is next scheduled for mention on 5 July 2019 and is being prosecuted by the Commonwealth Director of Public Prosecutions.
