03-088 ASIC reaches agreement with Brad Keeling in One.Tel proceedings
Thursday 13 March 2003
Mr David Knott, Chairman of the Australian Securities and Investments Commission (ASIC), today announced that ASIC has reached an agreement with Mr Bradley Keeling, a former director of One.Tel Limited (One.Tel), in the court proceedings against him.
Mr Keeling is one of four defendants in the proceedings brought by ASIC following the collapse of One.Tel in May 2001. The other defendants are Mr Jodee Rich, Mr Mark Silbermann and Mr John Greaves.
Under the agreement with ASIC, Mr Keeling has admitted to contraventions of the Corporations Act 2001 between February and May 2001 in relation to the discharge of his duties as a director of One.Tel.
Pursuant to the agreement, ASIC and Mr Keeling have made joint submissions to Mr Justice Bryson requesting orders that Mr Keeling:
- be banned from being a director, or otherwise being involved in the management of any corporation, for between 10 and 15 years. In light of Mr Keeling’s contrition and cooperation with ASIC the parties have submitted that the banning period should be at the lower end of that range;
- be found liable for the compensation of $92 million to One.Tel; and
- be ordered to pay ASIC’s costs of $750,000.
As part of the terms of agreement Mr Keeling denies that he deliberately misled the board and the market, but admits that he failed to take the reasonable steps he should have in order to apprise himself of the true financial position of the company during that period.
Justice Bryson has reserved his decision pending consideration of the legal issues connected with the proposed orders.
Pending a final determination by the court, ASIC will not be commenting further on this matter.
ASIC Website: Printed 07/29/2010
