Former Chief Executive Officer of the Wall & Ceiling Superannuation Fund, Mr Wayne Ridings, was last week convicted of falsifying documents to deceive the Australian Prudential Regulation Authority (APRA), following a joint investigation by APRA and the Australian Federal Police (AFP).
Mr Ridings had pleaded guilty to two charges of falsifying documents with the intention of deceiving APRA in an attempt to subvert the objectives of the Superannuation Industry (Supervision) Act 1993 and enable the Wall & Ceiling Superannuation Fund to invest in in-house assets.
Judge Wood of the County Court in Melbourne described the conduct of Mr Ridings as “sustained and devious”. He convicted Mr Ridings on Friday 20 July on both charges and fined him a total of $7,000. The matter was prosecuted by the Commonwealth Director of Public Prosecutions.
Deputy Chairman Ross Jones said that any attempts to deceive APRA must be taken very seriously. “Members of superannuation funds are entitled to rely on the integrity of superannuation trustees and their professional advisers,” Mr Jones said.
At the time of APRA’s investigation, which commenced in June 2001, the Wall & Ceiling Superannuation Fund had assets valued at about $3 million and approximately 140 members employed in the plastering industry. APRA’s initial concern centred on a lack of diversification in the Fund’s investment portfolio, which had 88 per cent of its assets invested in related unit trusts controlled by one individual, Mr Ridings. These trusts developed purpose-built factories that were leased back to employer sponsors of the Fund in contravention of the in-house assets prohibition.
The Fund is currently licensed and operated by a trustee.
APRA previously disqualified 11 people as a result of their conduct in managing the affairs of the Fund. Of these people, four pleaded guilty to criminal charges in addition to Mr Ridings:
- Mr David Foulds pleaded guilty to two offences of making false records with the intention of deceiving APRA (Dec 2004);
- Mr Clifford Berridge pleaded guilty to one offence of failing to ensure that the Fund was maintained for the sole purpose of providing retirement benefits to members (Aug 2005); and
- Mr Robert Elliott and Mr Paul Hullin both pleaded guilty to engaging in a scheme to avoid the application of the in-house asset provisions (Feb 2007).
The sentencing of Mr Ridings brings to an end APRA’s enforcement actions in relation to this matter.
APRA’s disqualification register can be viewed at http://www.apra.gov.au/Disqualification- Register.cfm
The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the financial services industry. It oversees banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, friendly societies, and most members of the superannuation industry. APRA is funded largely by the industries that it supervises. It was established on 1 July 1998. APRA currently supervises institutions holding approximately $2.5 trillion in assets for 20 million Australian depositors, policyholders and superannuation fund members.
Media and industry inquiries only:
Andrew McCutcheon, Public Affairs Manager
Australian Prudential Regulation Authority
Telephone: 02 9210 3143
Mobile: 0417 528 660
All other inquiries:
APRA Contact Centre 1300 131 060
