The Australian Securities and Investments Commission (ASIC) on Thursday said it has obtained final orders from the Supreme Court of Queensland against the operator of DanFX Trade, Daniel Farook Ali, who has been charged over the running of unlicensed financial services businesses.
Ali was convicted and sentenced in 2012 for fraud charges, following a raid conducted by the Queensland Police in conjunction with the ASIC . He was sentenced to two and half years' imprisonment. And although being banned from providing financial services or engaging in credit activity, Ali founded and operated DanFX and two related companies which carried out a financial services business without an Australian Financial Services (AFS) license.
In addition to the FX brand, the charges also relate to the operation of DanFX Investment Holdings Pty Ltd and D&S Ali Properties Pty Ltd., which raised approximately $13 million from more than 200 investors.
Ongoing financial misconduct
ASIC also alleges that the parties have engaged in misleading conduct in relation to providing unlicensed financial services and dealing with investor funds in a manner inconsistent with the conduct of a managed investment scheme. The assets of Ali and his entities have been seized after ASIC applied for the winding up of DanFX Trade and associated entities and the court has appointed receivers.
In a bid to help investors identify who to trust with their financial queries, the ASIC said that its website lists registered investment companies and financial advisers, as well as a list of banned and disqualified directors and advisers.
The corporate watchdog explained that operating unlicensed financial services business carries penalties of $36,000, two years’ jail, or both. A similar fine or jail term of five years, or both, applies to lodging incorrect documentation.
