A former superannuation fund trustee director and an accountant have been committed to stand trial over the management and operation of a $3m superannuation fund that catered for 140 members employed in the plastering industry.
Mr Wayne Ridings, a former director of the trustee of the Wall and Ceiling Superannuation Fund (the Fund), was committed to stand trial in the County Court in Melbourne on nine charges relating to his involvement in the affairs of the Fund.
Mr Paul Hullin, a partner of MV Anderson & Co chartered accountants, was similarly committed to stand trial in the County Court on six charges relating to his involvement in the affairs of the Fund.
The charges faced by Mr Ridings and Mr Hullin arise from alleged breaches of the Superannuation Industry (Supervision) Act 1993 (the SIS Act) and relate to alleged contraventions of the sole purpose test and the making of allegedly false records with the intention of deceiving APRA.
In particular, APRA alleges the Fund was largely invested in unit trusts established to develop purpose built factories which were subsequently leased back to employer sponsors of the Fund. In addition, APRA alleges that records were falsified to support continued investment in the unit trusts despite legislative change designed to restrict such investments by superannuation funds.
Mr Ridings, who entered pleas of not guilty in relation to all charges, had another charge discharged, while Mr Hullin did not contest the committal hearing and reserved his plea in relation to all charges.
Similar charges against Mr Robert Elliott, also a partner of MV Anderson & Co and the former approved auditor of the Fund, were adjourned to 26 June 2006. A charge against Ms Melva Blackley, an employee of MV Anderson & Co, in relation to the allegation that she made a false record with the intention of deceiving APRA, was adjourned to 26 June 2006. Other charges that she allegedly gave false testimony in an examination by APRA under the SIS Act were discharged.
These proceedings follow the earlier successful prosecutions of Mr Clifford Berridge, a former director of the corporate trustee of the Fund, and Mr David Foulds, of Pitcher Partners chartered accountants, both of whom pleaded guilty to criminal offences relating to their involvement in the affairs of the Fund. APRA has previously disqualified 12 individuals associated with the Fund from acting as trustees of any APRA regulated superannuation fund.
The Commonwealth Director of Public Prosecutions is prosecuting these matters.
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
