Alleged ‘phoenix scheme’ operator Wayne Fraser facing criminal charges
The alleged mastermind of a scheme in which a NSW caravan park resident with no assets became owner of more than 20 companies has been charged with multiple criminal offences.
Sydney accountant and self-described insolvency adviser Wayne Fraser has been charged by the corporate regulator with multiple criminal offences over a scheme in which “dummy” directors were allegedly installed in companies before they were declared insolvent, leaving creditors owed money.
The charges follow a long-running investigation by The Australian into schemes run by the South African-born Mr Fraser, including one in which a mystery caravan park resident with no assets became owner of more than 20 companies that went on to be liquidated owing creditors money.
In another case, a Sydney shopkeeper who used Mr Fraser as her financial adviser discovered she’d become a director or owner of more than a dozen companies, including a large aviation operation in Broome. She said she had never heard of the company – or been to Broome.
The colourful Sydney accountant is also involved in disputes with several former business partners, some alleging they were threatened at Mr Fraser’s behest by one of Sydney’s most-feared bikies, Jason “Ace” Fahey, a claim Mr Fraser denies.
On Tuesday, Mr Fraser faced the Downing Centre court in Sydney on 16 charges of making or authorising false or misleading statements in documents lodged with the Australian Securities & Investments Commission. Each offence carries a penalty of up to $42,000 and/or five years in jail.
The criminal case has been brought by ASIC following a joint investigation with the Serious Financial Crime Task Force, which is administered by the ATO.
ASIC alleges Mr Fraser, through his entity Maxum Enterprises, was facilitating the phoenixing of companies by advising clients in financial distress to install dummy directors before the companies were declared insolvent. Mr Fraser runs multiple companies under the Maxum brand but boasts particular expertise in insolvency cases. The 55-year-old owns a lavish seven-bedroom property in Dural currently valued at around $5m, drives a late-model black Mercedes and has a 15.8m British-built motor yacht worth about $500,000 berthed in Sydney.
The charges relate to three companies: Embrace Australia Pty Ltd, a company selling wellbeing paraphernalia; Situbusit Pty Ltd, an investment and property management company; and Maiorana Marketing Pty Ltd, a NSW event management company organising musical productions.
The charges cover a period between October 5, 2017 and January 16, 2019. On at least two occasions, ASIC alleges, Mr Fraser’s clients were advised to shift assets into a new entity. Documents submitted by Mr Fraser to the corporate regulator were alleged to be misleading because they removed directors from ASIC records and, despite bearing the signatures of replacement directors, those individuals either had no knowledge of their appointment or had not consented to it.
At least one ended up being a director of up to 13 companies.
ASIC is also expected to allege that some documents were backdated before being lodged, giving the impression the real director for each of the three entities wasn’t actually a director at relevant times.
In court on Tuesday, Mr Fraser, who was unrepresented, said the charges were “absolutely entirely false … as there’s no evidence” and requested the matter be dismissed.
Magistrate Jennifer Atkinson told him: “That’s not how it works”, saying the commonwealth had rejected a summary dismissal of the case and that the matter would ultimately be dealt with in the District Court. She advised Mr Fraser to get a lawyer.
In May, The Australian revealed a scheme organised by Mr Fraser in which his friend Jamyson Taylor-Leigh Curthill – a NSW South Coast caravan park resident with no assets – was paid $5000 a time to become a “shadow director” or owner of more than 20 companies that went on to be liquidated, owing creditors money.
Sydney boat distributor Neil Webster told The Australian he lost $800,000 when a company that owed him money was “sold” to Mr Curthill, who could not repay the money and who had disappeared from the south coast caravan park he’d given ASIC as his address. Mr Curthill is not one of the directors involved in ASIC’s case against Mr Fraser and no charges have been laid against him in that case.
Mr Curthill surfaced in the Wyong court in June facing unrelated charges of larceny as bailee and has pleaded not guilty.
Mr Fraser has denied companies were sold to Mr Curthill and others to defeat creditors, saying those who sold the companies did so to protect their credit rating.
If you know more, email rices@theaustralian.com.au
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