ASIC Enforcement Wrap: March 2025

Marchin Summary – Enforcement Actions and Outcomes

Civil Action:

Civil Proceedings Commenced

ASIC commenced 2 civil proceedings:

• ASIC commenced proceedings against AustralianSuper Pty Ltd in the Federal Court in relation to the delayed processing of death benefit claims. ASIC alleges that AustralianSuper contravened section 912A(1)(a) of the Corporations Act 2001 (Cth) (Corporations Act) by failing to process death benefit claims efficiently, honestly, and fairly.  ASIC alleges at least 6,897death benefit claims took between four months to four years to be assessed. ASIC further alleges that AustralianSuper contravened section 912A(1)(c) of the Corporations Act by failing to pay member’ benefits as soon as practicable after the death of at least 752 members: in 254 cases AustralianSuper took between 15 to 213days to provide the death benefit claim form.
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• ASIC has commenced proceedings against FIIG Securities Limited (FIIG) for alleged failures to have adequate cybersecurity measures. ASIC alleges that over a four year period, FIIG’s failure to have adequate cybersecurity measures allowed a hacker to enter its IT network undetected for almost a month, resulting in the theft of sensitive personal information such as names, addresses, driver’s licenses, and bank accounts which were released on the dark web. ASIC is alleging that FIIG contravened ss 912A(1)(a), (d) and (h) and 912A(5A) of the Corporations Act. Australian Financial Services licensees are required by law to have adequate cybersecurity systems in place.

Civil Penalties

The Federal Court ordered civil penalties totalling $10.5 million in the following case:

• On 18 March 2025 the Federal Court imposed a pecuniary penalty of $10.5 against Active Super for greenwashing. In June 2024, the Federal Court found that Active Super made misrepresentations by claiming certain investments were eliminated or restricted by its environmental, social, and governance investment screens. Active Super in fact held direct and indirect investments in companies related to gambling, oil tar sands, and coal mining, when it previously claimed that it had eliminated those investments as they posed too great a risk to the environment and community.

Civil Judgments

One judgment was delivered in ASIC civil proceedings:

• The Full Federal Court has found in favour of ASIC in two appeals concerning small amount lender Sunshine Loans. The first appeal was lodged by Sunshine Loans and related to a 12 April 2024 finding of Justice Derrington that Sunshine Loans contravened the National Credit Code by entering into small amount credit contracts containing an unlawful fee that was charged to customers. The Full Court unanimously dismissed this appeal. ASIC brought across appeal in relation to  Sunshine Loans’ application to have Justice Derrington recuse himself on the basis of apprehended bias. ASIC’s appeal was allowed and the penalty hearing will proceed before Justice Derrington.

Other Orders

• The Federal Court made orders freezing the assets of Rashid Alshakshir, the director of Lion & Horn Pty Ltd (in liquidation), Nohap Pty Ltd (in liquidation) and Indigo Group Pty Ltd (in liquidation). ASIC is currently investigating Mr Alshakshir and his related entities in relation to the provision and payment of marketing services in connection with ASIC’s investigation into the Shield Master Fund and the First Guardian Master Fund.

Criminal:

Charges

4 individuals were charged:

• Three former Irexchange Limited (IRX) executives were charged at the Sydney Downing Centre Local Court on 4 March 2025 with alleged breaches of the Corporations Act. Brett Charlton, former Chief Executive Officer, and Brett Coventry, former Chief Financial Officer, were charged with one count of providing false or misleading information contrary to section 1308(2) of the Corporations Act. Anand Sundaraj, former Company Secretary and Legal Advisor, was charged with two counts of providing false or misleading information contrary to section1308(2), one count of making a false or misleading statement contrary to section 1309(1), and one count of aiding and abetting Mr Charlton and Mr Coventry. The charges concern conduct relating to an agreement concerning the shares of the founders of IRX and a prospectus lodged with ASIC.
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• Brendan Gunn was charged in the Sydney Downing Local Court on 4 March 2025 with one count of dealing with money or property reasonably suspected of being proceeds of crime of $100,000 or more, contrary to section 400.9 of the Criminal Code. Mr Gunn allegedly dealt with two bank cheques containing a total investment amount of $181,000 from three victim investors who had deposited the funds for conversion to cryptocurrency. Mr Gunn, as a director of Mormarkets Pty Ltd, accepted deposits from Australians for conversions to cryptocurrency and other overseas investment opportunities.
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• Antonio Stella was indicted in the County Court of Victoria on two counts of insider trading. It is alleged that Mr Stella sold shares in Cann Group Limited while possessing inside information relating to an upcoming share placement. Mr Stella made a profit of $204,490.90 and avoided loss of $20,986.34 by selling 2,561,286 shares for $0.373 per share, and then reacquiring 2,090,909 shares for $0.275 per share through the share placement.
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• Behzad Eghrari was charged with three offences undersections 1041B(1)(a) and 1311 of the Corporations Act of creating a false or misleading appearance of active trading. Mr Eghrari allegedly executed 679 trades which involved no charge in beneficial ownership, creating a false or misleading appearance of market activity.

Charges Discontinued

Charges were discontinued against two individuals:

• Jennifer Hutson was charged in April 2018 with a number of offences related to her conduct as a director of G8 Education Limited. On 20 March 2025, the Commonwealth Director of Public Prosecutions discontinued those charges after reviewing the matter.
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• David Burke was charged in April 2018 with five counts of giving false or misleading information to ASIC during its investigation of G8 Education Limited’s 2015 takeover bid for Affinity Education Group Limited. On 20 March 2025, the Commonwealth Director of Public Prosecutions discontinued those charges.

Guilty Plea One individual pleaded guilty:

• Krishnakumar Agrawal, the current and former director of 27 companies collectively known as Mansa Group, pleaded guilty in the Sydney Downing Centre Local Court to one count of using false documents to obtain a financial advantage and one count of using his position as a director dishonestly to gain an advantage. Mr Agrawal removed directors and shareholders of Mansa Group corporations without their knowledge and applied for and obtained loans from third-party lenders on that basis.

Findings of Guilt

One individual was found guilty of three offences:

• Tim Xenos, former CEO and director of FAL Healthy Beverages Pty Ltd (FAL HB) was found guilty of three offences: making business decisions that affected the whole or a substantial part of FAL HB while being disqualified from managing a corporation because of bankruptcy; secondly, he was found guilty of using his position dishonestly with the intention of gaining an advantage for himself by using $111,342.95 from FAL HB to pay for costs to annul his personal bankruptcy; and finally, Mr Xenos was found guilty of failing to fully disclose information to his bankruptcy trustee including his salary payments, bank accounts, and employment status. The matter has been adjourned for sentencing at a later date.

Administrative action:

Bannings

ASIC banned 4 individuals from providing financial services:

• Andrew Bodnar was banned by ASIC for six and a half years, taking effect from 26 February 2025, following an ASIC investigation into the collapse of the Kingdom Developments Group. The Kingdom Development Group engaged in property development projects that registered special purpose vehicles (SPVs). The SPVs involved financial products, however, neither the Kingdom Development Group companies nor Mr Bodnar, held an AFSL. ASIC found that Mr Bodnar is not a fit and proper person to provide financial services and was likely to contravene a financial services law and banned Mr Bodnar from providing financial services, controlling a financial services business, or performing any function relating to the carrying on of a financial services business.
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• Harris Shortland was banned by ASIC for seven years, taking effect from 4 March 2025. ASIC found that Mr Shortland was not a fit and proper person to provide financial services following his conviction of supplying dangerous drugs and receiving or possessing their proceeds of sale. Mr Shortland has been banned from providing financial services, controlling a financial services business, and performing any function relating to the carrying on of a financial services business.
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• Peter Surtenich was permanently banned beginning 6 March 2025 from providing financial services, performing any function in the carrying on of a financial services business, and controlling an entity that carries on a financial services business. ASIC found Mr Surtenich failed to comply with financial services law by making dishonest representations regarding certain investments. Additionally, ASIC determined that Mr Surtenich lacked the necessary judgment and competence to be a financial adviser.
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• Grant Thomson was banned by ASIC for five years from providing financial services, performing any function in the carrying on of a financial services business, and controlling an entity that carries on a financial services business. Following a review of advice provided by Mr Thomson, ASIC found that he failed to provide appropriate financial advice in his clients’ best interests.

Other actions:

• During the second half of 2024, ASIC took action against the registration of 17 approved self-managed superannuation fund (SMSF) auditors. Of those 17 auditors, ASIC disqualified four auditors, imposed additional conditions on two auditors, and cancelled the registration of eleven auditors. ASIC found breaches of the SMSF auditors’ professional obligations, breaches of annual statement non-compliance, and a lack of practical experience necessary for carrying out SMSF audits.

If any of the above is relevant to you or you want to know more, please feel free to get in touch.

The contents of this article do not constitute legal advice and it is not intended to be a substitute for legal advice and should not be relied upon as such.  It is designed and intended as general information in summary form, current at the time of publication, for general informational purposes only.  You should seek legal advice or other professional advice in relation to any particular legal matters you or your organisation may have.