ASIC Enforcement Wrap: March 2026

Key March Takeaways:

• Two former The Star Entertainment Group Ltd executives were found to have breached duties owed to Star under the Corporations Act for their handling of risks of money laundering and criminal activity
• Macquarie Securities (Australia) Limited was ordered to pay a $35 million penalty after admitting it misreported short sale data to ASX over a period of more than 15 years, with the Court emphasising the seriousness and duration of the conduct and the deficiencies in its systems and controls.
• Binance Australia Derivatives was ordered to pay a $10 million penalty after misclassifying more than 85% of its Australian clients as wholesale clients, exposing 524 retail investors to high-risk crypto derivative products and resulting in more than $12 million in losses and fees.

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Spotlight – Macquarie Securities ordered to pay $35 million penalty for misreporting of short selling to ASX for 15 years

Macquarie Securities (Australia) Limited (MSAL), a wholly owned subsidiary of Macquarie Group Limited, has admitted to contraventions of the Corporations Act 2001 (Cth) (the Act) in its misreporting of short selling to ASX Limited (ASX) between 11 December 2009 and 14 February 2024. 

In ASIC’s first short selling reporting case, ASIC has put market participants on notice to ensure their systems and controls are robust and compliant with their statutory obligations.

Short selling is the practice of selling a financial product that the seller does not currently own with the intention of benefiting from the sale. The Act requires the disclosure of certain information to the market operator for transactions related to short selling.

MSAL submitted a Short Sale Report to ASX each trading day which compiled data of short sale transactions. Although there were systems, controls, and processes in place to ensure compliance with MSAL’s reporting obligations, MSAL admitted these were deficient and failed to ensure the accuracy of the Short Sale Reports.

MSAL admitted that it submitted incorrect data to ASX, including that the Short Sale Reports:

• Incorrectly included duplicate “dummy fills” used to update clients as actual short sales;
• Incorrectly excluded certain types of trades from its total volume calculation; and
• Did not always include certain types of trades completed between 5:00pm and 8:00pm.

MSAL failed to correctly report at least 73 million short sales, with an estimated range of misreported short sales being between 298 million and 1.5 billion.

MSAL admitted that it contravened:

• s 798H(1)(b) of the Act for failing to comply with Securities Market Rules by providing incorrect information to ASX in its Short Sale Reports;
• s 912A(1)(h) of the Act for failing to have adequate risk management systems; and
• s 1041H(1) of the Act for engaging in misleading or deceptive conduct in relation to a financial product or service for providing incorrect Short Sale Reports.

The New South Wales Supreme Court ordered MSAL to pay a $35 million pecuniary penalty. In considering the appropriateness of the penalty, the Court noted that it reflected:

• The objects of specific and general deterrence;
• The seriousness and duration of the conduct;
• The extent of the deficiencies in MSAL’s systems and controls;
• That the conduct was not deliberate; and
• MSAL’s reporting of the issues to ASIC and subsequent cooperation during the investigation and proceeding.

The Court also ordered declarations of contravention, a compliance program and for MSAL to pay ASIC’s costs.

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March in Summary – Enforcement Actions and Outcomes

Civil Action

Civil Proceedings

ASIC commenced two proceedings in the Federal Court and the New South Wales Supreme Court:

• ASIC has filed an application in the New South Wales Supreme Court to wind up Liberty Bell Bay Pty Ltd on just and equitable grounds for failing to lodge its annual financial reports. In June 2025, ASIC obtained orders from the Court for Liberty Bell Bay to lodge its annual financial reports for the years ending 2021, 2022, 2023 and 2024. Liberty Bell Bay subsequently failed to comply with the orders. ASIC further alleges that Liberty Bell Bay failed to lodge reports for the financial year ending 2025.
• ASIC has filed an application in the New South Wales Supreme Court to wind up twelve companies associated with Christopher Malcolm Edwards, an accountant and former solicitor, on just and equitable grounds. ASIC has also applied for the appointment of provisional liquidators to the twelve companies. ASIC applied for the companies to be wound up because it has concerns about the management and affairs of the companies, including concerns that the companies have failed to comply with statutory obligations to prepare and lodge annual financial statements.

Civil Penalties

The Federal Court ordered civil penalties totalling $10 million in one case:

• Binance Australia Derivatives (Oztures Trading Pty Ltd) was ordered to pay a $10 million pecuniary penalty after admitting it misclassified 524 retail investors as wholesale clients between July 2022 and April 2023, exposing them to high-risk crypto derivative products without key consumer protections. ASIC alleged failures in onboarding, staff training and compliance oversight; the misclassified clients incurred more than $12 million in losses and fees, and Binance had already paid approximately $13.1 million in compensation to affected clients.

Civil Judgments

The Federal Court and High Court handed down judgments in three cases:

• The Federal Court found that two former executives of The Star Entertainment Group Ltd (Star) breached their duties owed to Star under section 180 of the Corporations Act. The Court found that Matthias Bekier, former Chief Executive Officer and Managing Director, and Paula Martin, former Chief Legal & Risk Officer, breached their duties in relation to their handling of risks of money laundering and criminal activity at major casinos. Mr Bekier breached his duties by failing to manage risks arising from the operation of Suncity Group’s exclusive gaming room and failing to properly escalate to the Board issues regarding the impermissible use of China Union Pay cards. Ms Martin breached her duties by failing to inform the Board about the risks of Star’s dealings with Suncity, and misleading Star’s bank, National Australia Bank, regarding the use of China Union Pay Cards.

• The High Court of Australia has unanimously ruled in favour of ASIC in a recusal dispute with Sunshine Loans Pty Ltd. Justice Derrington initially found Sunshine Loans liable for contraventions of the National Credit Act in April 2024. Sunshine Loans applied for Justice Derrington to recuse himself from the penalties hearing on the basis of apprehended bias. In July of 2024, Justice Derrington determined to recuse himself. ASIC appealed this recusal and won in the Full Federal Court in March 2025. Sunshine Loans appealed this decision to the High Court, where the High Court ruled 7-0 in ASIC’s favour. Justice Derrington, who made the original ruling with regards to Sunshine Loan’s contravention, will now decide the penalties that the loan provider must face.
• The Federal Court made declarations that Macquarie Investment Management Limited (MIML) contravened the Corporations Act by failing to place the Shield Master Fund (Shield) on a watchlist. MIML should have placed Shield investment options on a watchlist for further and heightened monitoring. The declaration was made by the Court following a Statement of Agreed Facts and Admissions by the parties. ASIC did not seek a pecuniary penalty against MIML due to exceptional circumstances, including payments made to Shield investors.

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Criminal Action

Criminal Charges

Two individuals were charged with criminal offences:

• Donald James Cuthbertson, a former financial services company director and financial advisor, has had thirteen additional charges brought against him. Mr Cuthbertson previously faced six charges of dishonest conduct in relation to a financial product, and one charge of the same offence committed by proxy. A further eleven charges relating to dishonest conduct were brought for allegedly dishonest representations made to investors in relation to his company Professional Wealth Management Pty Ltd. An additional two charges of attempting to pervert the course of justice have been laid as Mr Cuthbertson allegedly attempted to communicate with prosecution witnesses. Two of the existing charges were withdrawn, bringing the total number of charges to eighteen.
• Sunny Mahendra Prakash, a financial advisor, certified practising accountant, registered tax practitioner and self-managed superannuation fund auditor, appeared in the Brisbane Magistrates Court charged with two counts of dealing in securities without a licence, two counts of engaging in dishonest conduct in relation to a financial product or service, and seven counts of dishonestly applying property of another to himself (aggravated fraud). It is alleged that between January 2016 and June 2024, as a result of his dishonest conduct, Mr Prakash misappropriated funds of $4,912,435.80 and caused trading losses of approximately $1,277,776.94.

Charges Discontinued

Three individuals had criminal charges against them discontinued:

• Peter Dykes, Anthony Dunlop and Peter Torney, former directors of Capital Mining Limited, had charges against them discontinued by the Office of the Director of Public Prosecutions (Cth) (CDPP). Following ASIC’s investigation into Capital Mining Limited, charges were laid in 2022 in Western Australia but were later discontinued on 1 November 2024. At that time, CDPP intended to submit an ex officio indictment New South Wales, however the CDPP has now advised it will not proceed with the charges in NSW.

Sentencing

Three individuals were sentenced in criminal matters:

• Three former Remedy Housing Pty Ltd officials have been sentenced in the County Court of Victoria following guilty verdicts for their roles in promoting interest-free mortgages. Between 2019 and 2021, Remedy Housing received deposits totalling $1.83 million from 107 customers for interest-free mortgages. In reality, Remedy Housing had no investors, never provided any mortgages, and the funds acquired from customers were used to operate the scheme or misappropriated. Brent Smith, former director, was sentenced to 6 years and 2 months’ imprisonment, Mahmoud Khodr, former secretary, was sentenced to 5 years’ imprisonment, and Fue Mano, former company officer, was sentenced to 30 months’ imprisonment.

Administrative Action

Bans

Three individuals were banned by ASIC from providing financial services or credit services:

• Neil Andrew Cato has been banned for a period of five years until 27 February 2031 from engaging in credit activities, controlling another person who engages in credit activities, performing any function engaging in credit activities, providing financial services, carrying on a financial services business, or controlling an entity that carries on a financial services business. Mr Cato refused or failed to give effect to two Australian Financial Complaints Authority determinations, and had also become insolvent on 27 February 2024.
• Raluca Terheci has been banned for a period of six years effective 25 July 2025 from providing financial services, carrying on a financial services business, or controlling an entity that carries on a financial services business. 
• Nicholas Hogan, a Victorian financial adviser formerly associated with Venture Egg, Reilly Financial and Interprac, was banned from the financial services industry for four years. 

Licence Suspension or Cancellation

One individual had their Australian credit licence (ACL) cancelled:

• ASIC has cancelled the ACL of John Adicho, effective 26 February 2026. The Sydney-based licensee failed to lodge six annual compliance certificates, failed to pay industry funding levies, and had been expelled from the Australian Financial Complaints Authority for non-payment of fees. Mr Adicho’s ACL had previously been suspended by ASIC in July 2024 until May 2025.

Director Disqualifications

ASIC disqualified three individuals from managing corporations:

• ASIC has disqualified Claudio Criniti from managing corporations for the maximum period of five years until 25 February 2031. Mr Criniti was involved as a director in the failure of seven companies between April 2023 and September 2024. By March 2026, the seven companies collectively owed over $8 million to creditors, including approximately $2.6 million to the ATO and $4.8 million to trade creditors. Alongside the various debts owed by the companies, ASIC found that Mr Criniti acted improperly and failed to meet his obligations as a director including when he allowed two of the companies to trade while insolvent.
• ASIC has disqualified Simon John Raftery from managing corporations for 2 years and 6 months. Mr Raftery was the director of five companies between 2019 and 2023 which owe approximately $43 million to unsecured creditors. In deciding to disqualify Mr Raftery, ASIC found that one of the companies was insolvent in its final 6 months of trading and that Mr Raftery was aware of the insolvency.
• ASIC has disqualified Vincenzo Frank Tesoriero from managing corporations for the maximum period of five years until 23 February 2031 due to his involvement in the failure of 20 companies. ASIC found that Mr Tesoriero acted improperly and failed to meet his obligations as a director when he allowed eleven companies to receive funds of $2,105,015 from Westpac which appeared to be fraudulently obtained, failed to ensure that nine companies lodged business activity statements and income tax returns, failed to ensure that seventeen companies kept adequate books and records, and failed to submit a ROCAP to the liquidator for nineteen companies.

Infringement Notice

ASIC issued three infringement notices to three companies:

• Three Mecca-related companies—Mecca Brands Pty Ltd, Mecca Brands NZ Pty Ltd and RTCH Pty Ltd—each paid a $198,000 infringement notice, totalling $594,000, after allegedly failing to lodge audited financial reports for the year ended 28 December 2024 by the statutory deadline. ASIC said the reports were due by 28 April 2025 and were lodged shortly after ASIC made inquiries in July 2025; payment of an infringement notice is not an admission of guilt or liability.

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

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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. 

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