David Robert Siminton, the self proclaimed 'governor of the principality of camside' and the 'state of sherwood' in Melbourne's South Yarra, was sentenced yesterday in the Federal Court for breaching court orders related to operating an unauthorised bank.
Justice Ronald Merkel sentenced Siminton to 10 weeks' jail after finding him to be in contempt of court for trying to withdraw over half a million dollars of funds frozen by the court to protect the interests of depositors in his 'terra nova cache'. Siminton was also fined $5000 for failing to place warning signs on the web-site for terra nova cache within the time required by the Court to make it clear that terra nova cache is not an authorised bank.
The sentences will be stayed until Siminton's appeal to the Full Bench of the Federal Court is heard, on the condition he continues to live at his current address and report each week to local police, and that he adheres to the appeal timetable set out by the Federal Court.
In obtaining the orders in December 2005 and January 2006, APRA alleged that Siminton had been operating an unauthorised banking operation in contravention of various sections of the Banking Act 1959.
This Act prohibits anyone from conducting a banking business without the appropriate authority. It also prohibits the use of words that suggest the carrying on of a banking business. Depositors in authorised banks are protected by prudential requirements. Depositors in unauthorised entities like terra nova cache have no such security.
A number of depositors have placed substantial funds with Camside and were promised returns of approximately 50 per cent per annum. His website had promoted 'terra nova cache' as a bank and stated that deposits were secured by investment in gold, and platinum.
APRA had successfully argued Siminton, an undischarged bankrupt, made numerous breaches of orders made against him, including failing to respond to the order to remove any references to the words bank or banking and being restrained from withdrawing money from bank accounts.
Siminton's website http://www.principalityofcamside.cc
now carries a notice on its homepage informing readers that 'terra nova cache' and the 'principality of camside' are not authorised to use the words bank and banking or carry on the business of banking.
A further directions hearing on the issuing of the court orders against Siminton is scheduled for 28 April in the Federal Court.
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 $2.2 trillion in assets for 20 million Australian depositors, policyholders and superannuation fund members.
Media and industry inquiries only:
Stuart Snell, Head of Public Affairs
Australian Prudential Regulation Authority
Telephone: 02 9210 3384
Mobile: 0407 250 276
All other inquiries:
APRA Contact Centre
1300 131 060
