ASIC has obtained final orders in the Supreme Court of Queensland against Daniel Farook Ali, former director of DanFX Trade Pty Ltd (DanFX).
ASIC commenced proceedings in 2017 alleging that Mr Ali, through DanFX, operated an unregistered managed investment scheme known as the Daniel Ali Scheme, which raised approximately $13 million from more than 200 investors.
On 23 July 2018, the Court found that:
- Mr Ali, DanFX and two related companies operated the Daniel Ali Scheme, which was a managed investment scheme that was required to be registered under the Corporations Act but was not so registered;
- Mr Ali contravened the Corporations Act by operating the Daniel Ali Scheme without holding an Australian financial services licence; and
- Mr Ali contravened the Corporations Act by managing DanFX and two related companies, despite being disqualified from managing corporations due to a prior conviction for fraud.
The Court permanently restrained Mr Ali from managing corporations.
ASIC’s investigation in relation to Mr Ali is continuing.
On 14 November 2017, ASIC obtained orders in the Supreme Court of Queensland appointing Mr Anthony Castley of William Buck as receiver over the assets of Mr Ali, DanFX and related companies DanFX Investment Holdings Pty Ltd and D&S Ali Properties Pty Ltd (refer: 17-396MR).
A copy of Mr Castley’s affidavit sworn on 29 January 2018 detailing his investigations into the affairs of the Daniel Ali Scheme can be accessed here. On the basis of that affidavit, ASIC considered that there was no evidence that sufficient funds existed to repay investors.
On 9 May 2018, ASIC successfully applied for the winding up of the Daniel Ali Scheme, DanFX, DanFX Investment Holdings and D&S Ali Properties. Mr Castley was appointed by the Court as the receiver of the scheme and the liquidator of the companies (refer: 18-141MR).
ASIC has also permanently banned Mr Ali from providing financial services or engaging in credit activity as a result of fraud charges brought by the Queensland Director of Public Prosecutions in 2012. Mr Ali was sentenced to two and half years’ imprisonment, to be suspended after the first six months in prison. This fraud conviction is unrelated to ASIC’s civil proceedings.