Melbourne director pleads guilty to failing to assist liquidator – Banned for 20 years

Mr Barry John Patrick, 67, of Pakenham Victoria has pleaded guilty in the Melbourne Magistrate Court to six charges following an investigation by the Australian Securities and Investments Commission (ASIC) into his conduct as an officer of a number of companies including Supatrust Finance Ltd.

Mr Patrick pleaded guilty to five charges of failing to keep proper books and records in relation to the following companies all of which went into liquidation:

• Supatrust Finance Ltd;
• Aarosonic Credits Ltd;
• Pacific Petroleum Services Pty Ltd;
• H.B.L. Holdings Ltd; and
• Texol Petroleum Services Pty Ltd

Mr Patrick was convicted and fined $5000.

He also pleaded guilty to six further charges that as an officer of Supatrust Finance Ltd he was required by the liquidator to deliver a report regarding the debtors of the company but failed to do so. Mr Patrick was convicted on that charge and fined $2000.

The Commonwealth Director of Public Prosecutions prosecuted the matter

Background

In March 2001, after an ASIC application, the Federal Court appointed liquidators to six companies operated by Mr Karl Veljkovic and Mr Barry Patrick that allegedly misused superannuation funds. The entities involved were: Teilis Financial Services Pty Ltd, Aarosonic Credits Limited, Supatrust Finance Ltd, Pacific Petroleum Services Pty Ltd, H.B.L Holdings Pty Ltd, and Texol Petroleum Services Pty Ltd.

In October 2001, the Federal Court made orders by consent that Mr Veljkovic, and Mr Patrick be restrained until 11 October 2006 from soliciting money from a regulated superannuation fund for an unregistered managed investment scheme; carrying on an unlicensed securities business which involves the soliciting of money from a regulated superannuation fund; and carrying on an unlicensed investment advice business which comprises advice to a regulated superannuation fund.

In February 2007, following an ASIC application, the Federal Court appointed Simon Wallace-Smith and Timothy Bryce Norman of Deloitte as liquidators to E.K.B Properties Pty Ltd, Sandgrove Specialised Securities Ltd and Cardinia Specialised Securities Ltd, entities controlled and/or managed by Mr Patrick and Mr Veljkovic.

Mr Veljkovic and Mr Patrick also consented to Federal Court orders banning them from:

• carrying on a financial services business;
• parting with any funds that have come into his possession by issuing, selling or offering a financial product; and
• managing corporations for a period of 20 years.