media release

10-257AD Melbourne director sentenced

Published

Mr Barry John Patrick of Frankston, Victoria, has been sentenced to 4 months imprisonment wholly suspended with a requirement that he enter into a recognisance in the amount of $10,000 to be of good behaviour for 5 years, following an investigation by ASIC.

Mr Patrick pleaded guilty in the Melbourne Magistrate Court to one charge of carrying on a financial services business without holding an Australian financial services (AFS) license and three charges of managing a corporation while disqualified.

ASIC found that between 1 August 2003 and 31 December 2006 Mr Patrick induced approximately 40 investors to invest in 3 property development schemes. E.K.B Properties raised approximately $4 million, Sandgrove Specialised Securities Ltd raised approximately $1.5 million and Cardinia Specialised Securities Ltd raised approximately $1 million.

None of the investors have been repaid.

The Commonwealth Director Public Prosecutions prosecuted the matter.

Background

In February 2007, following an ASIC application, the Federal Court appointed Simon Wallace-Smith and Timothy Bryce Norman of Deloitte as liquidators the entities controlled and/or managed by Mr Patrick and Mr Karl Heinz Veljkovic, of Beaconsfield, Victoria, , E.K.B Properties Pty Ltd, Sandgrove Specialised Securities Ltd and Cardinia Specialised Securities Ltd (refer MR07-29).

Mr Veljkovic and Mr Patrick also consented to Federal Court orders banning them from:

  • carrying on a financial services business;
  • parting with any funds that have come into his possession by issuing, selling or offering a financial product; and
  • managing corporations for a period of 20 years.
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