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FORMER MFS EXECUTIVES HIT WITH DISQUALIFICATIONS AND MASSIVE FINES FOR MISAPPROPRIATING FUNDS

By Administrator | 29 May 2017

FIVE key players involved in an investment company that collapsed in 2008 owing $2.5 billion have been ordered to repay a total of $615 million, banned from holding management positions and individually fined between $90,000 and $650,000.

The Supreme Court of Queensland found that Craig White, Michael Christodolou, David Anderson, Guy Hutchings (pictured) and Marilyn Watts had collectively committed 217 contraventions of the Corporations Act while they were with MFS Investment Management Limited.

The five misappropriated $147.5 million of funds held in a managed investment scheme known as the Premium Income Fund (PIF) and used the money to pay debts owed by other related entities in the MFS Group.

Justice Douglas said that legal requirements were "flagrantly ignored" and that the penalties should reflect the complete disregard the defendants had to their duties under the Corporations Act.

"The insouciant attitude of the defendants to this misuse of money intended to be used for PIF's investors beggars' belief," Justice Douglas says.

Craig White (former Deputy CEO) was permanently disqualified from managing corporations, ordered to pay a penalty of $650,000 and, on top, pay $205 million compensation to PIF and 60% of ASIC's costs. Read more

Ben Hall - Business News Australia -  26 May 2017

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