ASIC starts proceedings in court against unlicensed traders

The Australian Securities & Investments Commission (ASIC) has begun civil proceedings in the Supreme Court of Queensland against Dr Roger Gareth Munro and Mrs Kathleen Susan Munro.

The regulator is seeking declarations and other orders in relation to alleged violations of the law by the couple, as ASIC claims Mr and Mrs Munro were carrying on a financial services business in Australia without an Australian Financial Services (AFS) licence.

In particular, ASIC alleges that this operation of an unlicensed futures trading business has begun in August 2011.

ASIC also alleges that:

  • Dr Munro keeps telling investors he is generating profits from trading, when documents obtained by ASIC indicate that he appears to have actually lost money from trading in Australia.
  • Dr Munro has raised over AU$1.5 million from investors, friends and family for trading purposes, but has failed to keep any, or produce any, books or records to ASIC in relation to this fundraising.
  • a substantial part of the funds which have been provided to Dr Munro for trading have eventually been transferred to a brokerage account in Mrs Munro’s name, for trading. The traded funds are then redeemed and transferred into another bank account in Mrs Munro’s name.

ASIC is seeking to obtain orders which:

  • restrain Dr Munro and Mrs Munro from carrying on a financial services business in Australia, without holding an AFS licence;
  • restrain Dr Munro and Mrs Munro from disposing of or dealing with investor funds;
  • restrain Dr Munro from operating certain bank accounts and trading accounts;
  • restrain Mrs Munro from providing any aid or assistance to Dr Munro in carrying on a financial service business;
  • restrain Mrs Munro from allowing Dr Munro to use or operate certain bank accounts in her name;
  • direct Dr Munro to provide ASIC with information about his fundraising activities and the location of investor funds.

ASIC’s application is listed in the Brisbane Supreme Court on August 7, 2015.

To view the official press release by ASIC, click here.

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