The former
chief executive of collapsed stockbroking firm BBY Limited appeared in court
today (Tuesday) facing fresh charges related to alleged dishonest conduct
involving a $192 million share acquisition.
Former BBY CEO Faces
Additional Fraud Charges Over $192 Million Share Deal
Arunesh
Narain Maharaj was charged with one count of procuring BBY’s dishonest conduct in communications with ASX, Australia’s
primary stock exchange. The charges stem from alleged misconduct between June
and December 2014 involving the acquisition of shares in the commodities
company Aquila Resources.
The
Australian Securities and Investments Commission (ASIC) alleges Maharaj
facilitated dishonest communications between BBY and the stock exchange during
the substantial share transaction.
“Maharaj aided, abetted, counselled or procured BBY in the course of carrying on a financial services business, to engage in dishonest conduct in communications with ASX Ltd and its subsidiaries, in relation to a $192 million acquisition of shares in Aquila Resources Ltd on behalf of a client,” the ASIC commented in the official statement.
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Mounting Legal Challenges
This brings
the total charges against Maharaj to three in connection with ASIC’s
investigation into BBY’s operations. He already faces two separate fraud
charges related to allegedly helping the firm improperly obtain funding from St
George Bank, a Westpac Banking Corporation division.
Those
earlier charges, filed
in October 2023, accuse Maharaj of facilitating deceptive practices that
allowed BBY to access unauthorized overdraft facilities. The alleged misconduct
occurred in June 2013 and again from November 2014 to early 2015.
The Downing
Centre Local Court adjourned today’s proceedings until August 5, 2025. The case
is being prosecuted by the Commonwealth Director of Public Prosecutions
following ASIC’s referral.
Severe Penalties at Stake
The latest
charge carries significant potential consequences. Under the Corporations Act,
Maharaj faces up to 10 years imprisonment, fines reaching $765,000, or three
times the value of any benefits obtained. The maximum penalties have since been
increased beyond the timeframe of the alleged offenses.
Each of the
existing fraud charges also carries a maximum 10-year prison sentence under New
South Wales criminal law.
BBY’s Collapse and
Aftermath
BBY Limited
operated as a stockbroking and financial services firm before entering
voluntary administration in May 2015. The company was subsequently liquidated
in June 2015, leaving substantial client shortfalls that affected numerous
investors.
ASIC
suspended BBY’s Australian Financial Services license in May 2015, maintaining
that suspension until formally canceling the license in June 2021. The
regulator’s investigation into the firm’s operations continues, suggesting
additional developments may emerge.
The former
chief executive of collapsed stockbroking firm BBY Limited appeared in court
today (Tuesday) facing fresh charges related to alleged dishonest conduct
involving a $192 million share acquisition.
Former BBY CEO Faces
Additional Fraud Charges Over $192 Million Share Deal
Arunesh
Narain Maharaj was charged with one count of procuring BBY’s dishonest conduct in communications with ASX, Australia’s
primary stock exchange. The charges stem from alleged misconduct between June
and December 2014 involving the acquisition of shares in the commodities
company Aquila Resources.
The
Australian Securities and Investments Commission (ASIC) alleges Maharaj
facilitated dishonest communications between BBY and the stock exchange during
the substantial share transaction.
“Maharaj aided, abetted, counselled or procured BBY in the course of carrying on a financial services business, to engage in dishonest conduct in communications with ASX Ltd and its subsidiaries, in relation to a $192 million acquisition of shares in Aquila Resources Ltd on behalf of a client,” the ASIC commented in the official statement.
You may also like: ASIC Finds $1 Trillion in Funds Lack Proper Oversight
Mounting Legal Challenges
This brings
the total charges against Maharaj to three in connection with ASIC’s
investigation into BBY’s operations. He already faces two separate fraud
charges related to allegedly helping the firm improperly obtain funding from St
George Bank, a Westpac Banking Corporation division.
Those
earlier charges, filed
in October 2023, accuse Maharaj of facilitating deceptive practices that
allowed BBY to access unauthorized overdraft facilities. The alleged misconduct
occurred in June 2013 and again from November 2014 to early 2015.
The Downing
Centre Local Court adjourned today’s proceedings until August 5, 2025. The case
is being prosecuted by the Commonwealth Director of Public Prosecutions
following ASIC’s referral.
Severe Penalties at Stake
The latest
charge carries significant potential consequences. Under the Corporations Act,
Maharaj faces up to 10 years imprisonment, fines reaching $765,000, or three
times the value of any benefits obtained. The maximum penalties have since been
increased beyond the timeframe of the alleged offenses.
Each of the
existing fraud charges also carries a maximum 10-year prison sentence under New
South Wales criminal law.
BBY’s Collapse and
Aftermath
BBY Limited
operated as a stockbroking and financial services firm before entering
voluntary administration in May 2015. The company was subsequently liquidated
in June 2015, leaving substantial client shortfalls that affected numerous
investors.
ASIC
suspended BBY’s Australian Financial Services license in May 2015, maintaining
that suspension until formally canceling the license in June 2021. The
regulator’s investigation into the firm’s operations continues, suggesting
additional developments may emerge.
This post is originally published on FINANCEMAGNATES.
