Australian Securities & Investments Commission v Liban Net Pty Ltd [2006] FCA 1308

Australian Securities & Investments Commission v Liban Net Pty Ltd [2006] FCA 1308

The defendants, without an Australian financial services licence, carried on a business of selling insurance and engaged in misleading and deceptive conduct regarding the nature and underwriting of those policies, constituting multiple serious contraventions. Mr Haddad, as sole director, was personally responsible. The seriousness, lack of contrition, and public interest required orders by consent and a period of disqualification from managing corporations of 8½ years, longer than originally proposed, to reflect the need for deterrence and protection of the public.

Jurisdiction
Australia
Judgment Date
19 June 2006
Procedural Posture
Civil / Final Judgment and Orders Following Application for Consent Orders
Outcome
Declarations and injunctions granted by consent; disqualification order imposed
Legal Topics
['director Disqualification' 'unlicensed Financial Services' 'misleading and Deceptive Conduct' 'false Representations' 'consent Orders']
['corporations Law' 'consumer Law' 'financial Services Law'] ['director Disqualification' 'unlicensed Financial Services' 'misleading and Deceptive Conduct' 'false Representations' 'consent Orders']

Case Brief

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Procedural Posture

Civil / Final Judgment and Orders Following Application for Consent Orders

Legal Issues

  1. 1 ['Whether the defendants carried on a financial services business without a licence in contravention of s 911A(1) of the Corporations Act 2001 (Cth)' 'Whether the defendants engaged in misleading or deceptive conduct in relation to financial products, contrary to s 1041H(1) of the Corporations Act 2001 (Cth) and s 12DA of the ASIC Act' 'Whether the defendants made false or misleading representations in contravention of s 12DB(1)(c) of the ASIC Act' 'Whether the second defendant should be disqualified from managing corporations under s 206E of the Corporations Act 2001 (Cth) and for what period']

Ratio Decidendi

The defendants, without an Australian financial services licence, carried on a business of selling insurance and engaged in misleading and deceptive conduct regarding the nature and underwriting of those policies, constituting multiple serious contraventions. Mr Haddad, as sole director, was personally responsible. The seriousness, lack of contrition, and public interest required orders by consent and a period of disqualification from managing corporations of 8½ years, longer than originally proposed, to reflect the need for deterrence and protection of the public.

Court Disposition

Declarations and injunctions granted by consent; disqualification order imposed

Orders

  • ['Declarations made as to contraventions by the defendants of s 911A(1) of the Corporations Act 2001 (Cth), s 1041H(1) thereof, s 12DA(1) and 12DB(1)(c) of the ASIC Act, and related aiding, abetting and knowing involvement by the second defendant' 'Defendants (and associates) restrained from supplying or offering...