ASIC bans former authorised rep

Phillip Gregory Spark was a director and officer of CS Heritage Securities Limited (in liquidation) from 20 June 2008 until he filed for bankruptcy on 29 November 2012, ASIC stated in an announcement this afternoon.

ASIC stated Mr Spark had also acted as the solicitor for CS Heritage since its incorporation until 30 January 2012, and as an authorised representative from 2 May 2008, and project manager of all of CS Heritage's projects until he was removed on 21 February 2012.

In deciding to ban Mr Spark permanently, ASIC found he had made statements to a client that were “false and misleading to induce the acquisition of a financial product when Mr Spark knew, or ought to have known them to be false or misleading”.

These false statements related to CS Heritage being the trustee for the Santandar Trust, as well as providing incorrect details about the Trust itself.

ASIC also found he engaged in misleading and deceptive conduct by concocting the existence of the Trust, and using a name that closely resembled the name of a trust for which CS Heritage was the trustee, being the Santander Trust.

The regulator stated it found reason to believe that Mr Spark was “not of good fame or character”.

ASIC deputy chairman Peter Kell said “those who engage in misleading and deceptive conduct will be removed from the industry”.

CS Heritage was the holder of an Australian financial services licence and responsible entity for several entities which acted as the trustees for a number of unregistered managed investment schemes, the regulator stated.

ASIC said these schemes were established to fund various property developments in Melbourne's inner suburbs. At all times, the business model of CS Heritage was to raise funds by way of debt funding.