An investigation by the Australian Prudential Regulation Authority (APRA) has led to an appearance by Mr Wayne Ridings, Mr Clifford Berridge, Mr Paul Hullin, Mr Robert Elliott and Ms Melva Blackley, each associated with the Wall & Ceiling Superannuation Fund (the Fund), in the Melbourne Magistrates Court today facing a total of 34 criminal charges.

Mr Wayne Ridings, a former director of the corporate trustee of the Fund, appeared on ten charges under the Superannuation Industry (Supervision) Act 1993 (the SIS Act).

Mr Clifford Berridge, a former director of the corporate trustee of the Fund, appeared on seven charges under the SIS Act.

Mr Paul Hullin, a partner of MV Anderson & Co chartered accountants, was associated with the entities into which the Fund invested and appeared on six charges under the SIS Act.

Mr Ridings, Mr Berridge and Mr Hullin each face charges relating to an alleged contravention of the sole purpose test, an alleged scheme to avoid the in-house asset rules and allegedly making and keeping records with the intention of deceiving APRA.

Mr Robert Elliott, also a partner of MV Anderson & Co, was the former approved auditor of the Fund. He appeared today on five charges under the SIS Act relating to an alleged scheme to avoid the in-house asset rules and allegedly making and keeping records with the intention of deceiving APRA.

Ms Melva Blackley, an employee of MV Anderson & Co, appeared on one charge under the SIS Act relating to allegedly making a record with the intention of deceiving APRA. Ms Blackley also appeared on five charges for offences under the Crimes Act 1914 relating to allegedly giving false testimony in an examination of Ms Blackley by APRA under the SIS Act.

The criminal charges follow the successful prosecution of Mr David Foulds of Pitcher Partners chartered accountants in December 2004 in connection with his involvement in the affairs of the Fund. The charges also follow APRA’s earlier announcement of the disqualification of a number of individuals associated with the Fund from acting as trustees of any regulated superannuation fund, including those now facing criminal charges.

The matters were each adjourned to 1 August 2005 for a special mention when a further date for a hearing will be set.

APRA’s Deputy Chairman, Mr Ross Jones, said that APRA depends on information provided by funds and their advisers to ensure that, in all reasonable circumstances, their financial promises to their members are fulfilled.

“Today’s appearances follow several months of investigation. Any attempts to mislead APRA are taken very seriously,” he said.

The Commonwealth Director of Public Prosecutions is prosecuting the matters.

-ends-

BACKGROUND

The multi-employer Fund managed around $3 million on behalf of about 140 members employed in the plastering industry. APRA’s investigation found that the Fund was largely invested via unit trusts in ‘lumpy’, purpose-built commercial property that was leased back to employer-sponsors resulting in a lack of diversification and liquidity, and conflicts of interest.

APRA alleges that various persons associated with the Fund created false records and backdated agreements in order to fabricate apparent compliance with the in-house asset provisions of the SIS Act. These provisions restrict the investment of superannuation moneys back into the employer-sponsors’ businesses in order to quarantine the interests of members from the fortunes of those businesses.

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 $2.0 trillion in assets for 20 million Australian depositors, policyholders and superannuation fund members.