After lengthy investigations, the Australian Securities and Investments Commission (ASIC) has filed criminal charges in two seperate financial misconduct cases. In the first case, Joseph Cullia and Zoran Markovic were charged with offenses related to an alleged self-managed super fund (SMSF) investment scam. In the second matter, Aryn Hala was charged with providing unlicensed financial services through his crypto-assets company. The two cases are different and does not have any connections with each other.

Self-Managed Super Investment Scam

According to ASIC, two Melbourne men (Cullia of Southbank and Markovic of Coburg) were charged with offenses related to the SMSF scam from November 2020 to July 2021. The men allegedly operated fraudulent websites that promised high investment returns. The sites improperly used the licenses of legitimate financial companies without their consent.

Cullia was charged with two counts of conspiracy to defraud, two counts of money laundering, and one count for possessing false documents and another for stolen identification. The money laundering charges each carry potential penalties of up to 25 years in prison.

Markovic was charged with 13 counts of aiding the money laundering offenses, along with possession of false documents, stolen identification, and equipment to create false IDs. He faces up to 12 months imprisonment on the charges.

At the end of last month, the regulator reported another Australian who, despite a 10-year ban on operating in financial markets, managed to open five more investment companies during this time. Even $8 million in financial penalties did not deter him.

Fake 20% Return from Crypto Investments

In the second misconduct case, Hala of Redbank Plains, Queensland, was accused of providing unlicensed financial services through his company, A One Multi Services Pty Ltd.

Hala was charged with nine counts of operating an unlicensed financial services business, each carrying a maximum 5-year prison sentence.

"The charges follow an ASIC investigation into conduct by Mr Hala where he promised consumers annual returns of at least 10-20% in investments that included crypto-assets in a company directed by him, A One Multi Services Pty Ltd. Mr Hala encouraged consumers to establish a SMSF, and to roll over their existing superannuation into the SMSF and invest it with Mr Hala’s company," ASIC wrote in its latest announcement.

A legal representative of Hala, approached Finance Magnates with the following clarification: "From day one Mr Hala has denied any wrongdoing and certainly denied suggestion that he was involved in defrauding third parties."

"The only allegations now being advanced against Mr Hala, after a thorough 2- year investigation is that, according to the ASIC, Mr Hala was providing Financial Services in accordance with the definition provided under the Corporations Act 2001 (Cth) and that he ought to have held a license to do so."

"As yet no evidence has been produced by the ASIC and there have certainly been no findings of fact that our client was running an investment business or providing any Financial Services."

ASIC warned about the exploitation of SMSFs by cryptocurrency scammers as early as the beginning of 2022. It reminded that in the case of these funds, the ultimate responsibility lies with retail investors.

Both Cullia, Markovic, and Hala were released on bail. The criminal charges follow ASIC investigations into suspected misconduct involving retirement savings. ASIC warns Australians to invest retirement funds cautiously. The Commonwealth Director of Public Prosecutions is prosecuting the matters.