Former research house CEO pleads guilty to dishonesty charges

In a statement on Tuesday, ASIC said that former van Eyk Research CEO Mark Thomas had pleaded guilty to dishonestly using his position as a director with the intention of directly or indirectly gaining an advantage for himself in the Downing Centre Local Court.

The corporate regulator said that Mr Thomas dishonestly used his position as director of New Zealand-based Blueprint Investment Management, a subsidiary of van Eyk, to facilitate an investment of nearly $5 million in a separate fund, the Wholesale Enhanced Income Fund.

These funds were then loaned to another company, TAA Melbourne, to purchase an interest in van Eyk Research.

“These transactions prevented a third party from gaining control of van Eyk Research, of which Mr Thomas was the CEO, ensuring that Mr Thomas maintained control of the company’s affairs and strategy,” ASIC said.

“By doing this, Mr Thomas used his position as a director dishonestly with the intention of directly or indirectly gaining an advantage for himself.”

Mr Thomas was charged with four counts of dishonestly using his position as a director or officer of a company with the intention of gaining an advantage for himself in May last year following an investigation by ASIC.

The maximum penalty faced by Mr Thomas is $340,000, five years’ imprisonment, or both.

ASIC confirmed that the matter will be before the Downing Centre District Court for mention on 1 July, at which time a sentencing date is expected to be set.

Jon Bragg

Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.