Tribunal thwarts Equititrust CEO Mark McIvor’s licence bid

MORE than four years after the collapse of the Gold Coast Equititrust investment empire, the scheme’s formerly bankrupt founder Mark McIvor has failed to regain his financial services licence.

Mark McIvor, founder and managing director of Gold Coast-based merchant bank Equititrust Capital.

MORE than four years after the collapse of the Gold Coast Equititrust investment empire — in which about 1600 investors lost more than $200 million — the scheme’s formerly bankrupt founder Mark McIvor has failed to regain his financial services licence.

The Administrative Appeals Tribunal (AAT) has refused an application brought by the ex-CEO and founding director of Equititrust, which is in liquidation, for an order staying the operation and implementation of the banning order. The order, first made by an Australian Securities and Investments Commission delegate on September 2 last year, permanently prohibits McIvor from providing any financial services.

In refusing the application, the AAT found that:

● McIvor had not made an affidavit in the AAT as to the matters in controversy.

● Despite being advised by ASIC on September 7, 2015, that a banning order needed to be personally served on McIvor, his solicitors did not make arrangements to enable their client to be served the order.

● McIvor was evading service.

McIvor has filed an application with the AAT for a review of the original decision permanently banning him from providing any financial services.

In December 2011, ASIC suspended the Australian financial services licence of Equititrust for a year, for failure to comply with a number of key licensee obligations.

In August 2014, McIvor was convicted and fined $10,000 in the Brisbane Magistrates Court on six charges of failing to provide a report as to affairs and to deliver books and records to the liquidators of Chevron Capital Pty Ltd, MHSM Holdings Pty Ltd and SM Capital Pty Ltd. In December, he was permanently banned by the corporate cop.

ASIC then said McIvor had been banned from providing any financial services because it was found that he breached a financial services law and “was not of good fame or character to provide financial services”.

ASIC also said McIvor’s conduct involved breaches of the financial services legislation it dubbed “very serious, repetitive, prolonged and dishonest”.

Equititrust was the responsible entity of the Equititrust Income Fund and collapsed in 2011.

It raised funds from ordinary investors, many elderly pensioners who tipped their life savings into the scheme.

Some have passed away while waiting for various legal actions to work their way through the courts.