On 14 November 2017, the Supreme Court appointed Anthony Castley of William Buck as receiver and manager over the assets of DanFX Trade Pty Ltd, Daniel Farook Ali and associated entities. Freezing orders were also made restraining the disposal of any property (including money and securities) by Mr Ali, DanFX Trade, DanFX Investments Holdings Pty Ltd and D&S Properties Pty Ltd.
ASIC has alleged that Mr Ali, through Dan FX, operated an unregistered managed investment scheme that has raised approximately $13 million from more than 200 investors.
ASIC commenced its proceedings in the Supreme Court for the appointment of a receiver to identify and secure the assets of the alleged scheme for the benefit of investors and creditors. The orders were made on an ex parte basis on 14 November and Mr Ali consented to the continuation of those orders on 21 November 2017.
Mr Castley is to provide a report to the court by 15 January 2018.
The matter returns to the court on 6 December 2017.
ASIC has also permanently banned Mr Ali from providing financial services or engaging in credit activity as a result of fraud charges brought by the Queensland Director of Public Prosecutions in 2012. Mr Ali was sentenced to two and half years’ imprisonment, to be suspended after the first six months in prison. This fraud conviction is unrelated to ASIC’s current proceedings and only came to ASIC’s attention after reports to ASIC about Mr Ali’s current investment scheme.
The charge stemmed from conduct that occurred between 19 June 2008 and 16 February 2010, when Mr Ali dishonestly used $30,000 provided to him to invest on behalf of eight investors. Instead of investing the funds, they were used to pay for Mr Ali’s own personal expenses.
ASIC investigations into the current scheme are ongoing.