Kingscliff hedge fund Goldsky, whose charity was backed by Jeff Horn and Joel Parkinson, has assets frozen amid fraud charges

A KINGSCLIFF hedge fund whose homeless charity was spruiked by some of the nation’s biggest sport stars has had its assets frozen as it battles civil fraud charges overseas and allegations of financial misconduct in Australia.

A KINGSCLIFF hedge fund whose homeless charity was spruiked by some of the nation’s biggest sport stars has had its assets frozen as it battles civil fraud charges overseas and allegations of financial misconduct in Australia.

The Australian Securities and Investments Commission this morning said Goldsky Global Access Fund and its owner Kenneth Charles Grace, 53, had been blocked by the Supreme Court from disposing of any assets and that a receiver had been appointed to manage the fund and its related entities.

Queensland boxing idol Jeff Horn joined world champion surfer Joel Parkinson and Olympic cyclists Robbie McEwen and Stuart O’Grady to launch Goldsky’s Sleep Safe Sleep Sweet homeless charity at a lunch last August.

The athletes say the event was a paid appearance and they have no ongoing relationship with the firm or its charity.

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Launch of Goldsky’s “Sleep Safe Sleep Sweet” charity initiative last August, attended sports stars Robbie McEwen, Jeff Horn, Joel Parkinson and Stuart O'Grady. Picture Mike Batterham

ASIC alleges Goldsky operated without a financial services licence, operated an unregistered managed investment scheme called ‘Goldsky Global Access Fund’ that has raised more than $16 million from more than 50 investors.

ASIC said it would allege Mr Grace used investor funds for his own personal use, including substantial payments to family members and the purchase of personal items.

The United States Securities and Exchange Commission (SEC) filed a civil suit in the United States District Court, Southern District of New York against Goldsky Asset Management LLC and Mr Grace on September 27.

The SEC’s complaint alleges Goldsky’s claims about managing $100 million of assets and about it returns were “false and misleading”.

“Goldsky and Grace did not manage $100 million of assets, and Goldsky Fund did not have any investment returns as it never had any assets,” the SEC said at the time.

Mr Grace declined to comment on ASIC’s allegations, but said the US case could be settled soon.

“People are not aware of what’s happened in the US overnight,” he said.

“We are in settlement negotiations in the US and some of the charges have been changed.

“I can’t go into the specifics because it could jeopardise our settlement.”

The Bulletin has contacted the SEC for an update.

Mr Grace and his wife Jane launched their charity initiative with an oversized cheque for $100,000 at the lunch last August.

Horn, who is currently preparing to fight Anthony Mundine on November 30, attended the lunch in the wake of his world title win against Manny Pacquiao.

“I’m helping launch the foundation and it’s something I’m very keen to do,” he said at the time.

“When I was young I was in trouble and I wished I had a foundation like this to reach out to and get some help.”

Boxer Jeff Horn with Jane and Ken Grace. Picture Mike Batterham

Mr Grace said no-one else had donated to the charity, which he said operated through the registered Ken & Jane Grace Foundation.

“There’s no change in the charity,” he said.

A spokesman for Horn this morning said the star’s appearance for the charity was a one-off and the boxer had no ongoing relationship with the fund or its charity.

Parkinson this morning said he’d invested with Goldsky “a long time ago” and had no problems and that his involvement with the charity had not gone beyond appearing at the lunch.

“I just did a paid lunch for them,” he said.

The Goldsky matter is set to return to court on November 8 and receiver Anthony Castley of William Buck is due to report on the case by November 26.

Mr Grace, who operated US-incorporated Goldsky Asset Management LCC, was an authorised investment adviser in that country, and the Australian branch was its appointed agent.

ASIC said it told Goldsky in June it was no longer allowed to operate as an agent to the US company and that it must obtain an Australian licence.