Former Boss of Collapsed Stockbroking Firm Faces Fresh $192M Fraud Charges ⋅ Crypto World Echo
The formerchief executive of collapsed stockbroking firm BBY Limited appeared in courttoday (Tuesday) facing fresh charges related to alleged dishonest conductinvolving a $192 million share acquisition.
Former BBY CEO FacesAdditional Fraud Charges Over $192 Million Share Deal
AruneshNarain Maharaj was charged with one count of procuring BBY’s dishonest conduct in communications with ASX, Australia’sprimary stock exchange. The charges stem from alleged misconduct between Juneand December 2014 involving the acquisition of shares in the commoditiescompany Aquila Resources.
TheAustralian Securities and Investments Commission (ASIC) alleges Maharajfacilitated dishonest communications between BBY and the stock exchange duringthe substantial share transaction.
“Maharaj aided, abetted, counselled or procured BBY in the course of carrying on a financial services business, to engage in dishonest conduct in communications with ASX Ltd and its subsidiaries, in relation to a $192 million acquisition of shares in Aquila Resources Ltd on behalf of a client,” the ASIC commented in the official statement.
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Mounting Legal Challenges
This bringsthe total charges against Maharaj to three in connection with ASIC’sinvestigation into BBY’s operations. He already faces two separate fraudcharges related to allegedly helping the firm improperly obtain funding from StGeorge Bank, a Westpac Banking Corporation division.
Thoseearlier charges, filedin October 2023, accuse Maharaj of facilitating deceptive practices thatallowed BBY to access unauthorized overdraft facilities. The alleged misconductoccurred in June 2013 and again from November 2014 to early 2015.
The DowningCentre Local Court adjourned today’s proceedings until August 5, 2025. The caseis being prosecuted by the Commonwealth Director of Public Prosecutionsfollowing ASIC’s referral.
Severe Penalties at Stake
The latestcharge carries significant potential consequences. Under the Corporations Act,Maharaj faces up to 10 years imprisonment, fines reaching $765,000, or threetimes the value of any benefits obtained. The maximum penalties have since beenincreased beyond the timeframe of the alleged offenses.
Each of theexisting fraud charges also carries a maximum 10-year prison sentence under NewSouth Wales criminal law.
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BBY’s Collapse andAftermath
BBY Limitedoperated as a stockbroking and financial services firm before enteringvoluntary administration in May 2015. The company was subsequently liquidatedin June 2015, leaving substantial client shortfalls that affected numerousinvestors.
ASICsuspended BBY’s Australian Financial Services license in May 2015, maintainingthat suspension until formally canceling the license in June 2021. Theregulator’s investigation into the firm’s operations continues, suggestingadditional developments may emerge.
This article was written by Damian Chmiel at www.financemagnates.com.
