$8M Loss Instead of 150% Profit: Crypto Director Banned
The
Australian Securities and Investments Commission (ASIC) has permanently banned
Brian Jacques Creigh, director of Panacea Capital Pty Ltd, from providing
financial services or being involved in any financial services business.
The
decision comes after an investigation revealed that Creigh operated the Panacea
Capital Cryptocurrency Investment Fund between April 2021 and June 2022 while
unlicensed and engaged in misleading and deceptive conduct.
According
to ASIC’s findings, Creigh provided fact sheets to investors that contained
false and misleading information, including claims that Panacea Capital was
providing a capital guarantee on the investment, had been in operation since
2016, and had targeted returns of 120% to 150%.
The fact
sheets also suggested that Panacea Capital comprised teams of people with
certain skills and knowledge when, in reality, the only employees were Creigh
and one other person.
Creigh
transferred funds invested in the Crypto Fund overseas to invest in the LAG
Fund, which turned out to be an investment scam, causing investors to lose
approximately $7.7 million.
ASIC found
that Creigh was not adequately trained or competent, as he failed to react to
warning signs that he was dealing with scammers or dishonest individuals while
operating the cryptocurrency fund.
“We take action where we see the most serious harm – or a risk of it – and in cases most likely to send a strong message of deterrence to others,” Alan Kirkland, the ASIC Commissioner, commented during APAC’s Policy Week.
ASIC Commissioner Alan Kirkland spoke at @blockchain_apac Policy Week on 20 March, setting out our approach to innovation, regulatory reforms and enforcement in the #crypto sector https://t.co/GECpccMAV7 pic.twitter.com/8qggaPQwPp
— ASIC Media (@asicmedia) March 20, 2024
Furthermore,
ASIC discovered that Creigh acted dishonestly and with a lack of integrity,
trustworthiness, and judgment when he operated the Crypto Fund knowing he was
not licensed to do so, provided false evidence during an ASIC examination, told
investors not to cooperate with ASIC’s investigation, and created a fictitious
Head of Client Services to communicate with investors.
Creigh has
the right to appeal ASIC’s decision to the Administrative Appeals Tribunal.
A month
ago, ASIC intervened to halt the activities of another dishonest player in the
cryptocurrency business, who promised a 20% return on investment. Hala, from
Redbank Plains, Queensland, faced allegations of offering unlicensed financial
services via his company, A One Multi Services Pty Ltd.
ASIC Wipes Out 3,500
Fraudulent Investment Websites
Two weeks
ago, the Australian regulator reported significant progress in its crackdown on
investment scams. Recent data highlights that since implementing
ASIC’s website takedown capability in July 2023, the regulatory body has
successfully dismantled nearly 3,500 fraudulent investment websites.
In another important
development, David Sipina has admitted guilt to two criminal charges connected
to his role in orchestrating a Ponzi scheme involving more than $180 million through the Courtenay House trading company. The scheme reportedly enticed around
585 investors to contribute funds under the pretense of high returns from Forex
and Futures market trading.
However,
ASIC’s investigation found that only a fraction of the collected funds were
actually used for trading. Most of the capital from new investors was
instead directed to pay off earlier participants, typifying the operations of a
Ponzi scheme.
The
Australian Securities and Investments Commission (ASIC) has permanently banned
Brian Jacques Creigh, director of Panacea Capital Pty Ltd, from providing
financial services or being involved in any financial services business.
The
decision comes after an investigation revealed that Creigh operated the Panacea
Capital Cryptocurrency Investment Fund between April 2021 and June 2022 while
unlicensed and engaged in misleading and deceptive conduct.
According
to ASIC’s findings, Creigh provided fact sheets to investors that contained
false and misleading information, including claims that Panacea Capital was
providing a capital guarantee on the investment, had been in operation since
2016, and had targeted returns of 120% to 150%.
The fact
sheets also suggested that Panacea Capital comprised teams of people with
certain skills and knowledge when, in reality, the only employees were Creigh
and one other person.
Creigh
transferred funds invested in the Crypto Fund overseas to invest in the LAG
Fund, which turned out to be an investment scam, causing investors to lose
approximately $7.7 million.
ASIC found
that Creigh was not adequately trained or competent, as he failed to react to
warning signs that he was dealing with scammers or dishonest individuals while
operating the cryptocurrency fund.
“We take action where we see the most serious harm – or a risk of it – and in cases most likely to send a strong message of deterrence to others,” Alan Kirkland, the ASIC Commissioner, commented during APAC’s Policy Week.
ASIC Commissioner Alan Kirkland spoke at @blockchain_apac Policy Week on 20 March, setting out our approach to innovation, regulatory reforms and enforcement in the #crypto sector https://t.co/GECpccMAV7 pic.twitter.com/8qggaPQwPp
— ASIC Media (@asicmedia) March 20, 2024
Furthermore,
ASIC discovered that Creigh acted dishonestly and with a lack of integrity,
trustworthiness, and judgment when he operated the Crypto Fund knowing he was
not licensed to do so, provided false evidence during an ASIC examination, told
investors not to cooperate with ASIC’s investigation, and created a fictitious
Head of Client Services to communicate with investors.
Creigh has
the right to appeal ASIC’s decision to the Administrative Appeals Tribunal.
A month
ago, ASIC intervened to halt the activities of another dishonest player in the
cryptocurrency business, who promised a 20% return on investment. Hala, from
Redbank Plains, Queensland, faced allegations of offering unlicensed financial
services via his company, A One Multi Services Pty Ltd.
ASIC Wipes Out 3,500
Fraudulent Investment Websites
Two weeks
ago, the Australian regulator reported significant progress in its crackdown on
investment scams. Recent data highlights that since implementing
ASIC’s website takedown capability in July 2023, the regulatory body has
successfully dismantled nearly 3,500 fraudulent investment websites.
In another important
development, David Sipina has admitted guilt to two criminal charges connected
to his role in orchestrating a Ponzi scheme involving more than $180 million through the Courtenay House trading company. The scheme reportedly enticed around
585 investors to contribute funds under the pretense of high returns from Forex
and Futures market trading.
However,
ASIC’s investigation found that only a fraction of the collected funds were
actually used for trading. Most of the capital from new investors was
instead directed to pay off earlier participants, typifying the operations of a
Ponzi scheme.
Credit: Source link
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