PNG court drops fraud charge against ClearView director David Brown

ClearView director David Brown has had a criminal fraud charge against him dropped by a court in PNG.

ClearView Wealth non-executive director David Brown has had a criminal fraud charge against him dropped by a court in Papua New Guinea.

In an ASX statement on Monday, ClearView (CVW) said the charge by the PNG National Fraud & Anti-Corruption Directorate “was dismissed” by the Waigani District Court.

Mr Brown was arrested last year and charged with one count of conspiracy to defraud by the National Fraud & Anti-Corruption Directorate. He is the chief investment officer of the National Superannuation Fund in PNG.

Both NASFUND and life insurer and wealth group ClearView came out in defence of Mr Brown last year.

NASFUND chairman Hulala Tokome released a statement noting the fund was “defending spurious charges laid against one of its executives resulting from a routine request for information”.

At the time, ClearView said Mr Brown had assured the board he acted “in accordance with the law”.

The charge concerned claims by the Melanesian Trustee Services group of an attempt to remove and replace the fund manager of the Pacific Balanced Fund by Mr Brown’s National Superannuation Fund.

Mr Brown — who joined the ClearView board in late 2012 — has longstanding experience in financial services.

He is the former head of private markets for Victorian Funds Management Corporation and a former senior fund manager at Queensland Investment Corporation.

Mr Brown is a member of ClearView’s board audit committee and risk and compliance committee.

The dismissal of the charge against Mr Brown is positive for ClearView as it and the financial services sector navigate the outcomes of the Hayne royal commission. A final report is due to be lobbed with the federal government by February 1.

ClearView’s shares have slumped 39 per cent in the past 12 months to 90c, weighed on by revelations made during the royal commission and a decision by Japan’s Sony Life not to pursue the acquisition of a majority stake in the company.

Among ClearView’s misdeeds - which were fleshed out at the royal commission - was the admission it ­breached criminal anti-hawking provisions with a mountain of sales calls that fell outside the bounds of the law. The company has since ceased outbound life insurance sales.