ob体育 has banned NSW-based property developer Andrew Bodnar from providing financial services, controlling an entity that carries on a financial services business and performing any function involved in the carrying on of a financial services business for six and a half years.
Mr Bodnar鈥檚 ban follows an ob体育 investigation into the early 2023 collapse of the Kingdom Developments Group.
Kingdom Developments was a group of companies engaged in property development projects in five states. For each project, a special purpose vehicle (SPV) was registered.听 The arrangements between investors and the SPVs were found by ob体育 to involve the issue of financial products and required to be operated by an entity that either held an Australian financial services licence (AFSL) or was authorised by a licensee to provide financial services. None of the Kingdom Developments Group companies, nor Mr Bodnar, held an AFSL or authorisation to provide financial services.
ob体育 found that:
- the SPVs in the Kingdom Developments Group and Mr Bodnar were carrying on a financial services business whilst unlicensed
- Mr Bodnar was involved in some of the SPVs offering securities without the required disclosure document under the Corporations Act, and
- Mr Bodnar was involved in some of the SPVs engaging in misleading and deceptive conduct regarding the use and repayment of investor funds.听
Mr Bodnar is also an undischarged bankrupt, which is a stand-alone basis for a financial services ban.
As a result of the conduct, ob体育 has reasons to believe that Mr Bodnar:
- is not a fit and proper person to participate in the financial services industry, and
- is likely to contravene a financial services law.
In determining the appropriate length of a ban, ob体育 found Mr Bodnar鈥檚 conduct demonstrated deficiencies in governance and financial management and showed a lack of professionalism and judgement. ob体育 noted that Mr Bodnar had shown contrition and remorse, and the length of the ban reflected that there was no dishonesty or intent to defraud.
Chris Savundra ob体育 Executive Director of Enforcement said, 鈥楳r Bodnar鈥檚 conduct showed a disregard for the laws designed to protect investors. It is incumbent on anyone accepting investor money to ensure they are operating legally and understand their obligations to the investor. Mr Bodnar failed to meet this obligation and, as a consequence, has demonstrated he is not a fit and proper person to engage in financial services in the future鈥�, Mr Savundra said.
The banning took effect from 26 February 2025.
Mr Bodnar鈥檚 banning is recorded on ob体育鈥檚 Banned and Disqualified Persons Register.
Mr Bodnar has the right to appeal to the Administrative Appeals Tribunal for a review of ob体育鈥檚 decision.
Background
The Kingdom Developments Group consisted of several entities, including Kingdom Developments Australia Pty Ltd, Kingdom Management Services Pty Ltd, Kingdom Property Holdings Pty Ltd and 43 SPVs which were proprietary limited companies.听 A SPV, being a company established for a specific purpose or project, was established for each individual property development project.
Most property projects were based in New South Wales; however some were in South Australia, Western Australia, Queensland and Victoria.
On 30 August 2023, Mr Bodnar became bankrupt on his own petition and is automatically disqualified from managing corporations. A report issued by the bankruptcy trustee showed creditors were owed $131 million.