Auditor of former Gold Coast investment firm Halifax facing criminal charges after collapse
The auditor of a former Gold Coast investment firm that has left more than $211 million of investor funds frozen since it collapsed in 2018 has pleaded guilty to charges brought by the corporate regulator.
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THE auditor of a former Gold Coast investment firm that has left more than $211 million of investor funds frozen since it collapsed in 2018 has pleaded guilty to charges brought by the corporate regulator.
ASIC brought the charges against company EC Audit, previously known as Bentleys NSW Audit and its director and registered auditor, Robert James Evett, for breaches of auditing standards.
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The three charges related to audits of the profit and loss statements and balance sheets of Halifax Investment Services Pty Ltd (Halifax) for the financial years ended 30 June 2016, 30 June 2017 and 30 June 2018.
On Tuesday, EC Audit entered pleas of guilty at the Downing Centre Local Court in Sydney to three charges relating to alleged failure to conduct audits in accordance with auditing standards.
Mr Evett also entered pleas of guilty to three charges relating to alleged failure to ensure the audits were conducted in accordance with auditing standards.
The case was adjourned to 10 August 2021 for sentence.
The maximum penalty for the offences occurring before 1 July 2017 is a $9000 fine for each charge against Mr Evett and a $45,000 fine for each charge against EC Audit. For the offences occurring on or after 1 July 2017, the maximum penalty is $10,500 for the charge against Mr Evett and $52,500 for the charge against EC Audit.
EC Audit and Mr Evett are the first auditors in Australia to face criminal prosecution for an alleged failure to comply with auditing standards.
ASIC cancelled the licence of Halifax in January, as two of its former directors, Gold Coast man Jeff Worboys and Matthew Barnett quietly dropped a bid to take tens of millions of dollars from the funds of their former clients.
ASIC CANCELS HALIFAX INVESTMENT SERVICES LICENCE
Both Mr Barnett and Mr Worboys were banned from the industry for six years in April 2019 over their role in another major $200 million investment fund failure.
Liquidators have told clients not to expect the full amount of what they’re owed due to a $33.2 million shortfall and the hefty professional costs of sorting out the mess.
ASIC’s investigation into Halifax continues.
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