ASIC secures orders against ex-director of DanFX

Maria Nikolova

The Court permanently restrained Daniel Farook Ali, who raised approximately $13 million from more than 200 investors, from managing corporations.

The action taken by the Australian Securities & Investments Commission (ASIC) against several fraudulent investment entities operated by Daniel Farook Ali has led to more orders against the fraudster.

Earlier today, ASIC announced that it had obtained final orders in the Supreme Court of Queensland against Ali, former director of DanFX Trade Pty Ltd (DanFX).

Let’s recall that the Australian regulator launched proceedings in 2017 alleging that Mr Ali, through DanFX, operated an unregistered managed investment scheme known as the Daniel Ali Scheme, which raised approximately $13 million from more than 200 investors.

On Monday, July 23rd, the Court found that:

  • Mr Ali, DanFX and two related companies operated the Daniel Ali Scheme, which was a managed investment scheme that was required to be registered under the Corporations Act but was not so registered;
  • Mr Ali contravened the Corporations Act by operating the Daniel Ali Scheme without holding an Australian financial services licence; and
  • Mr Ali contravened the Corporations Act by managing DanFX and two related companies, despite being disqualified from managing corporations due to a prior conviction for fraud.

As a result, the Court permanently restrained Mr Ali from managing corporations.

In May this year, the Supreme Court of Queensland ordered that three companies associated with Mr Daniel Farook Ali and the unregistered managed investment scheme known as “the Daniel Ali Scheme” be closed.

The companies in question are:

  • DanFX Trade Pty Ltd (ACN 613 185 345);
  • DanFX Investment Holdings Pty Ltd (ACN 614 172 842); and
  • D & S Ali Properties Pty Ltd (ACN 614 851 937).

The Court has noted that winding up the companies and the Daniel Ali scheme was clearly appropriate.

ASIC has 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.

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