The Australian Securities and Investments Commission has banned Jonathan Peter West of Athelstone, South Australia from providing financial services for six years.
The Australian Securities and Investments Commission has banned Jonathan Peter West of Athelstone, South Australia from providing financial services for six years.
This follows an investigation by ASIC into the operation of a private mortgage investment business operated by West and John West & Associates at Payneham, South Australia.
West and JWA engaged in a scheme of borrowing money from members of the public to on-lend to others on the security of mortgages. The scheme involved more than 60 investors with loans and contributions totalling more than AUD15.2m.
ASIC found that between June 2003 and March 2007 West did not comply with financial services law as he:
• Operated a managed investment scheme that was required to be registered but was not;
• Carried on a financial services business while not being the holder of an Australian financial services licence;
• Did not provide a product disclosure statement in connection with making offers to retail clients to issue interests in the managed investment scheme; and
• Made offers relating to the issue of interests in the scheme, or accepted offers from retail clients to acquire interests in the scheme, when the scheme was not registered.
ASIC found that despite being put on notice in May 2005 that the scheme was contravening the Corporations Act 2001 West continued to operate the scheme. ASIC also found that West intended to circumvent a restraining order made by the Supreme Court in March 2007 by continuing to solicit funds from investors in the scheme.
The banning of West follows proceedings brought by ASIC in the Supreme Court of South Australia and declarations made on 9 May 2008 by the Honourable Justice Gray that West and JWA had contravened certain provisions of the Corporations Act.
West has the right to appeal to the Administrative Appeals Tribunal for review of ASIC’s decision.
