ASIC launches proceedings against four directors of Linchpin and Endeavour for alleged breaches of duties

Maria Nikolova

Four current and former directors of Linchpin and Endeavour Securities are accused of breaching their duties as officers of a responsible entity of a registered managed investment scheme.

The Australian Securities & Investments Commission (ASIC) today announced the launch of proceedings in the Federal Court of Australia against current and former directors of Linchpin Capital Group Ltd and Endeavour Securities (Australia) Ltd (for allegedly breaching their duties as officers of a responsible entity of a registered managed investment scheme.

The defendants to the proceeding are:

  • Ian Williams (current director of Endeavour and Linchpin);
  • Paul Raftery (current director of Endeavour and Linchpin);
  • Paul Nielsen (former director of Endeavour and Linchpin);
  • Peter Daly (current director of Linchpin).

Messrs Williams, Nielsen and Raftery were directors of Endeavour when it operated the Investport Income Opportunity Fund (Fund). The regulator alleges that, while not appointed as a director, Mr Daly also acted as an officer of Endeavour. All four defendants were directors of Linchpin at the time of the alleged conduct.

In March 2019, in separate proceedings, ASIC successfully obtained orders against Linchpin and Endeavour for multiple contraventions of the Corporations Act relating to the operation of the Fund and a second managed investment scheme, operated by Linchpin, also called the Investport Income Opportunity Fund. ASIC alleges in the current proceedings that each of the defendants were personally involved in contravening conduct about which the Court made orders in March 2019. ASIC further alleges that the defendants failed to act in the best interests of investors in the Fund.

It is also ASIC’s case that Mr Daly and Mr Raftery made improper use of their positions as officers of Endeavour to gain a financial advantage for themselves.

ASIC is seeking declarations of breaches of s601FD of the Corporations Act and the imposition of civil penalties as well as orders that Mr Williams, Mr Nielsen, Mr Daly and Mr Raftery be disqualified from acting as directors for a period of time.

The first case management hearing is scheduled for September 22, 2020.

Read this next

Digital Assets

Cathie Wood’s sponsored Bitcoin ETF sees historic $200 million inflows

The ARK 21Shares Bitcoin ETF (ARKB), co-sponsored by Cathie Wood’s ARK Invest, registered historic inflows exceeding $200 million on Wednesday, signaling a robust appetite among investors for Bitcoin-centric investments.

Digital Assets

Sam Bankman-Fried might see his 25-year sentence halved

Sam Bankman-Fried, the founder of the failed cryptocurrency exchange FTX, was sentenced to 25 years in federal prison by a Manhattan court on Thursday. This comes after he was convicted of defrauding customers and investors, with Judge Lewis Kaplan highlighting the potential future risks posed by Bankman-Fried.

Technical Analysis

EURJPY Technical Analysis Report 28 March, 2024

EURJPY currency pair under the bearish pressure after the pair reversed down from the major resistance level 164.25, which also stopped the sharp weekly uptrend at the end of last year,

Digital Assets

BlockDAG’s Presale Hits $9.9M, MultiversX & MINA Price Predictions Show Green

Read about BlockDAG’s promising $10 prediction and insights on MultiversX Price Prediction as MINA’s potential unfolds.

Digital Assets

Rockstar Co-Founder and All-star Line Up Join Advisory Board to Take Metacade into Post Beta Orbit

Metacade, the revolutionary Web3 gaming platform, prepares to streak out of beta with a slew of ground-breaking initiatives that will redefine the way blockchain games are developed.

Retail FX

Prop firm The Funded Trader shuts down, claims relaunch in April

Prop trading firm The Funded Trader has ceased all operations, with claims for a relaunch in the near future.

Digital Assets

Ethereum-Based Tokenized Real Estate Platform USP Launches On Republic

How This Californian Startup Is Revolutionizing Real Estate Investment through Ethereum-Based Tokenization.

Digital Assets

Sui Spikes in Weekly DEX Volume, Joins Top 10 of All Blockchains

March DEX volume on Sui stands at over $2.88B – up more than 49% from February – with decentralized exchange Cetus and wholesale liquidity layer DeepBook leading.

Digital Assets

Prisma Finance suffers $10 million crypto exploit, attack ongoing

Liquid staking protocol Prisma Finance fell victim to a security exploit on March 28, resulting in nearly $10 million in Prisma mkUSD and wrapped stETH being stolen by hackers.

<