Injunction Against Unlicensed Financial Adviser

Australia Business - Court Extends Injunction Orders Against Sydney Unlicensed Financial Adviser - Australian Securities & Investments Commission (ASIC)

Thursday 3 May 2007 LAWFUEL - The Law Newswire - The Australian Securities and Investments Commission (ASIC) has obtained further injunctive orders by consent in the Supreme Court of New South Wales preventing Mr Simon Finnigan, of Sydney, from leaving Australia and restraining his assets. Yesterday’s orders follow an interlocutory hearing during which the Court also continued orders preventing Mr Finnigan from providing financial advice and running financial services businesses without a licence.

Mr Finnigan was also ordered to lodge his passport with the Court and give written notice to ASIC of any plans to travel interstate within Australia. His Honour Justice Barrett previously granted ex parte orders on 27 April 2007 against Mr Finnigan and Financial Partners Pty Ltd, Venture Capital Management Pty Ltd and Biotech Solutions Pty Ltd. The assets of the three companies were frozen until 2 May 2007. Financial Partners Pty Ltd, Venture Capital Management Pty Ltd and Biotech Solutions Pty Ltd have now been placed into voluntary administration. Mr Peter Hillig of Smith Hancock has been appointed administrator of all three companies. ASIC’s investigations are continuing. The matter returns to the Supreme Court of New South Wales for further hearing on 3 September 2007.

Background ASIC alleges that Mr Finnigan and his companies have never held an Australian Financial Services Licence (or authority from the holder of such a licence) despite Mr Finnigan assuring potential investors that he and the companies which he controlled were authorised to provide financial services. In response to complaints regarding Mr Finnigan’s conduct, ASIC was concerned that Mr Finnigan: • may have misled investors as to his licensed status; • may have raised money for investments in his own ventures; and • may have misapplied investors’ funds. ASIC has alleged, amongst other things, that Mr Finnigan misled investors in relation to the above matters, causing investments of at least $4 million to be made in the Finnigan-controlled companies.

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