Australian Securities and Investments Commission v One Tech Media Ltd (No 6) [2020] FCA 842

Australian Securities and Investments Commission v One Tech Media Ltd (No 6) [2020] FCA 842

Maximum pecuniary penalty of $1.8 million was imposed on One Tech Media Ltd given the deliberate, systemic, exploitative, and dishonest conduct causing substantial losses to vulnerable investors. Permanent disqualification of Eustace and 15-year disqualification of Ida were ordered due to seriousness and repeated contraventions of the Corporations Act and concern for public protection. Permanent injunctions restraining relevant parties from carrying on financial services business were justified by ongoing risk to the public. Sanderson and Bullock Orders for costs were refused because ASIC unreasonably persisted with claims after reasonable uncertainty dissipated, and no conduct by...

Jurisdiction
Australia
Judgment Date
17 June 2020
Procedural Posture
Civil / Post Liability Judgment – Penalty, Injunctions and Costs
Outcome
Pecuniary penalty, disqualification orders, permanent injunctions and partial costs granted; Sanderson and Bullock Orders refused.
Legal Topics
['pecuniary Penalties' 'disqualification of Directors' 'permanent Injunctions' 'costs Orders']
['corporations Law' 'regulator and Consumer Protection'] ['pecuniary Penalties' 'disqualification of Directors' 'permanent Injunctions' 'costs Orders']

Case Brief

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Procedural Posture

Civil / Post Liability Judgment – Penalty, Injunctions and Costs

Legal Issues

  1. 1 ['What is an appropriate pecuniary penalty for contravention of s 12CB(1) of the ASIC Act?' 'Whether Eustace and Ida should be disqualified from managing corporations under s 206E of the Corporations Act, and the appropriate period for disqualification.' 'Whether permanent injunctions restraining the contravening defendants from carrying on a financial services business should be granted.' 'Whether Sanderson or Bullock Orders for costs should be made against unsuccessful defendants.']

Ratio Decidendi

Maximum pecuniary penalty of $1.8 million was imposed on One Tech Media Ltd given the deliberate, systemic, exploitative, and dishonest conduct causing substantial losses to vulnerable investors. Permanent disqualification of Eustace and 15-year disqualification of Ida were ordered due to seriousness and repeated contraventions of the Corporations Act and concern for public protection. Permanent injunctions restraining relevant parties from carrying on financial services business were justified by ongoing risk to the public. Sanderson and Bullock Orders for costs were refused because ASIC unreasonably persisted with claims after reasonable uncertainty dissipated, and no conduct by...

Court Disposition

Pecuniary penalty, disqualification orders, permanent injunctions and partial costs granted; Sanderson and Bullock Orders refused.

Orders

  • ['One Tech Media Ltd to pay pecuniary penalty of $1.8 million.' 'Eustace Senese permanently disqualified from managing corporations.' 'Yoav Ida disqualified from managing corporations for 15 years.' 'Permanent injunctions restraining One Tech Media Ltd, Eustace Senese, Yoav Ida, and Allianz Metro Pty Ltd from...