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