Australia’s Supreme Court freezes assets of fraudulent entity DanFX

Maria Nikolova

The orders are issued following an action brought by ASIC which alleged that Daniel Ali, through Dan FX, operated an unregistered managed investment scheme that has raised approximately $13 million from more than 200 investors.

The Australian Securities & Investments Commission (ASIC) today announces that it has managed to obtain Court orders against DanFX Trade Pty Ltd, Daniel Farook Ali and associated entities. The Australian Supreme Court appointed Anthony Castley of William Buck as receiver and manager over the assets of the defendants. 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.

According to ASIC, Mr Ali, through Dan FX, operated an unregistered managed investment scheme that has raised about $13 million from more than 200 investors.

The regulator started 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 November 14, 2017, and Mr Ali consented to the continuation of those orders on November 21, 2017.

In addition, 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.

The charge stemmed from conduct that happened between June 19, 2008 and February 16, 2010, when Mr Ali misappropriated $30,000 provided to him to invest on behalf of eight investors. Instead of investing the funds, Mr Ali used them for his personal expenses.

ASIC investigations into the current scheme continue. The receiver is set to provide a report to the court by January 15, 2018. The matter is scheduled to return to the court on December 6, 2017.

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