ob体育 has banned Paul Nielsen, a former director of Endeavour Securities (Australia) Ltd (Endeavour) and Linchpin Capital Group Ltd (Linchpin), from providing any financial services for a period of five years.
In March 2019, ob体育 obtained orders in the Federal Court against Linchpin and Endeavour for contravening multiple provisions of the Corporations Act while operating two managed investment schemes, both called 鈥業nvestport Income Opportunity Fund鈥� (19-065MR).
ob体育 has banned Mr Nielsen for his role in the operation of the managed investment schemes by Linchpin and Endeavour.
ob体育 found Mr Nielsen鈥檚 conduct in approving the investment of funds of the Investport Income Opportunity Fund in related entities constituted multiple contraventions of the Corporations Act.
In particular, Mr Nielsen:
- failed to act in the best interests of the members of the Investport Income Opportunity Fund; and
- used his position as an officer听of the companies to gain an advantage for other persons and cause听detriment to members of the Investport听Income Opportunity Fund.
ob体育 found Mr Nielsen did not understand the importance of the duties of a director to protect members of registered schemes and, as a result, his conduct put significant amounts of other people鈥檚 money at risk.
The banning order for Mr Nielsen has been recorded on ob体育鈥檚 publicly available听.
Background
On 15 March 2019, the Federal Court of Australia made orders that Endeavour and Linchpin contravened multiple provisions of the Corporations Act. As a result, the court ordered the winding up of Endeavour, Linchpin and the two Investport Income Opportunity Funds (19-065MR).
Mr Jason Tracy and Mr David Orr from Deloitte have been appointed as liquidators of the entities. Investors and creditors should direct their enquiries to:听[email protected].
Editor's note:
On 29 May 2020, ob体育 published 20-122MR detailing banning orders made for Mr Ian Williams, Mr Paul Raftery and Mr Peter Daly, who were also directors of Linchpin and Endeavour.听The three banning orders were not publicised at the same time as Mr Nielsen鈥檚 as Mr Williams, Mr Daly and Mr Raftery each appealed the banning order to the Administrative Appeals Tribunal and applied for a stay of the decision and a confidentiality order preventing publication. The Administrative Appeals Tribunal dismissed the applications for stay and confidentiality orders on 27 May 2020.
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