ASIC has a court order to close down unlicensed financial services company A One Multi

The directors of an unlicensed Queensland financial services firm have been accused of spending millions of dollars of investors funds on themselves.

Editor's Note – 28 March 2023   Following publication of this article, on 1 March 2023 Ms Walters was released from preservation orders previously obtained by ASIC and the Federal Court proceeding has been discontinued against her.

Australia’s corporate regulator has moved to shutdown an unlicensed financial services business and freeze its assets accusing its directors of using millions of dollars of investors funds to buy property, luxury vehicles and crypto-assets.

The Australian Securities and Investments Commission has obtained interim orders and injunctions from the Federal Court against A One Multi Services Pty Ltd and its Gold Coast-based directors Aryn Hala and Heidi Walters to protect investors who have deposited about $25m into the company’s accounts.

It is alleged Mr Hala told investors that he can help them invest their superannuation in a self-managed superannuation fund (SMSF) and then loan the money in their SMSF to A One Multi. ASIC alleges Mr Hala told investors that they would receive annual investment returns of over 20 per cent.

Between January 1, 2019 to June 30, 2021, more than 60 people deposited the $25m into A One Multi’s accounts.

However, ASIC alleges that Mr Hala has used more than $5.7m of A One Multi’s money for his and Ms Walters’ personal benefit, including through acquiring real property and luxury vehicles in their names.

In addition, more than $2.4m was transferred from A One Multi to buy crypto-assets.

Mr Hala and Ms Walters could not be reached for comment.

More than $2.4m was transferred from A One Multi to buy crypto-assets.

On October 21 the Federal Court ordered A One Multi to be put into the receivership of John Ross Lindholm and Timothy James Michael.

It also made asset preservation orders against Mr Hala, Ms Walters and A One Multi and required Mr Hala to transfer crypto-assets in his name to the receivers and required the disclosure of information to ASIC against Mr Hala, Ms Walters and A One Multi, including in relation to the crypto-asset holding.

Four days later, the first tranche of crypto-assets held in Mr Hala’s name was transferred to the receivers and on November 1, the Court made further orders requiring the defendants to attend an ASIC office to facilitate the transfer of remaining crypto-assets held or controlled by the defendants to the receivers.

ASIC said it moved swiftly to obtain the orders given ease with which crypto-assets can be transferred or transacted.

The platforms where you buy and sell crypto-assets may not be regulated by ASIC. This means you may not be protected if the platform fails or is hacked.

The orders were made pending a final hearing into the conduct of Mr Hala, Ms Walters and A One Multi and ASIC’s investigation into Mr Hala, Ms Walters and A One Multi remains ongoing.