A Sydney-based company is facing liquidation after it was discovered that $17 million worth of bonds were missing and believed to be fake.
The firm, which has not been named, is currently under investigation by the Australian Securities and Investments Commission (ASIC) after it failed to produce the bonds for a client who had invested in them.
According to ASIC, the client had invested the $17 million in the bonds in 2019, but when they requested to see the physical bonds, the company was unable to provide them. This raised suspicions and prompted the client to report the matter to ASIC.
Upon further investigation, it was found that the bonds were not registered with the Australian Financial Markets Association (AFMA), which is a requirement for all bonds traded in Australia. This led to the belief that the bonds were fake and the $17 million investment was at risk.
ASIC has since obtained a court order to freeze the company’s assets and prevent them from disposing of any assets without the court’s permission. The company is also facing potential criminal charges for breaching the Corporations Act.
The liquidation process has begun, and a liquidator has been appointed to investigate the company’s financial records and determine the whereabouts of the missing funds.
This incident serves as a reminder for investors to always conduct thorough research and due diligence before investing in any financial products. It is also a warning for companies to ensure they comply with all regulations and have proper systems in place to safeguard their clients’ investments.
ASIC has urged anyone who may have information about this matter to come forward and assist with their investigation. The case is ongoing, and updates will be provided as they become available.
