Clive Palmer hit with four fraud charges, facing five year jail sentence

Billionaire Queensland mining magnate Clive Palmer has been hit with fraud charges by corporate watchdog ASIC.

Four charges have been laid against billionaire Clive Palmer, including dishonestly gaining an advantage and misusing his position as a company director.

BILLIONAIRE Clive Palmer could face up to five years’ jail after being slapped with fraud charges dating back to the year he was elected to Parliament.

The dramatic turn of events was revealed before a parliamentary hearing late on Friday by corporate watchdog the Australian Securities and Investments Commissioner.

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Four charges have been laid against the billionaire, including dishonestly gaining an advantage and misusing his position as a company director.

While the resurgent businessman is facing civil court hearings in relation to the collapse of Queensland Nickel in 2016, these charges relate to alleged activity dating back to 2013.

It is understood they do not relate to Queensland Nickel.

These are the most serious charges laid against the former MP, who is also facing criminal charges from ASIC related to his company Palmer Coolum Leisure.

But Mr Palmer has brushed off the charges as “politically motivated” and says it’s “nothing to worry about”, while a spokesman said they would be calling for a Royal Commission into ASIC.

ASIC commissioner John Price told the parliamentary hearing Mr Palmer was charged with two counts of contravening section 408C subsection 1D of the Criminal Code of Queensland by dishonestly gaining a benefit or advantage, pecuniary or otherwise for another person.

Section 408C of Queensland’s Criminal Code relates to fraud and carries a maximum penalty of five years jail.

Mr Price said he had also been charged with two counts of contravening section 184 subsection 2 of the Corporations Act by dishonestly using his position as a director of a corporation with the intention of directly or indirectly gaining an advantage for someone else.

Mr Palmer was charged three weeks ago and is due to appear before court in Brisbane on March 20. Mr Price said it related to conduct alleged to have taken place in 2013, but that he was unable to provide further detail.

“For obvious reasons, ASIC does not propose to comment or provide further detail about this matter until the matter is before the court on March 20, 2020,” he said.

Mr Pal

mer said the charges were “fabricated” and would be “pretty easily dismissed”.

“They have not charged me over the Queensland Nickel stuff at all,” he told the Australian Financial Review.

“They have charged me over another thing but it’s nothing to worry about.”

A spokesman for Mr Palmer said a further statement would be made tomorrow.

“Clive is going to call for a Royal Commission against (ASIC) and John Price,” he said. “He will be sued for more than $100 million. This is driven by malice and we can’t wait to take him to court.”

He was previously charged in 2018 over alleged failures to comply with takeover laws related to his Coolum resort on the Sunshine Coast and has previously failed to have them dismissed.

Mr Palmer has denied those allegations.

ASIC has previously revealed it is close to finalising its investigation into the collapse of Queensland Nickel, which includes probing whether he acted as a shadow director of the company.

In 2013 Mr Palmer ran a high-profile election campaign under the Palmer United Party, which saw him elected to the seat of Fairfax.

He faced a high-profile court battle in the ensuing years from former business partner Citic Pacific, who claimed he wrongly siphoned $12 million from a joint bank account to fund his election campaign.

But a judge ruled he had no case to answer and that the money was not part of a trust. The $12 million was paid back shortly prior to the court case starting.

In the separate Palmer Coolum Leisure case, ASIC alleges in June 2012, PLC breached the Corporations Act by publicly professing to make a takeover bid for villa timeshare scheme The Presidents Club, but failed to make an offer for securities in the company within the prescribed two month period.