Yesterday the County Court of Victoria convicted chartered accountant Mr Paul Hullin and auditor Mr Robert Elliott for intentionally entering into, or carrying out, a scheme to deceive the Australian Prudential Regulation Authority (APRA) in relation to the Wall & Ceiling Superannuation Fund. The County Court fined Mr Hullin $7,000 and Mr Elliott $3,000 for their criminal offence under the Superannuation Industry (Supervision) Act 1993 (SIS Act).
This followed a joint investigation by APRA and the Australian Federal Police. Mr Hullin pleaded guilty to the offence in February 2007 in the County Court. Mr Elliott had earlier pleaded guilty in the Melbourne Magistrates Court, which sentenced him in July 2006 (without recording a conviction).
The Commonwealth Director of Public Prosecutions, which prosecuted both matters, appealed the adequacy of Mr Elliott’s original sentence and against the decision of the Magistrates Court to sentence him without recording a conviction. The County Court yesterday ruled in favour of the appeal against Mr Elliott’s sentence and decided that a conviction should be recorded against him. It also handed down the sentence against Mr Hullin.
Mr Hullin arranged the creation of back‑dated unit trusts and falsified accounting records with the knowledge that the records would be used to subvert the objectives of the SIS Act. Such conduct constituted a scheme which was designed to enable the Wall & Ceiling Superannuation Fund to avoid the operation of the in-house assets rules in relation to its investments in purpose‑built commercial factories.
Mr Hullin, a partner of MV Anderson & Co chartered accountants, provided accounting services to the unit trusts into which the Wall & Ceiling Superannuation Fund invested in excess of 90 per cent of its assets. He was previously disqualified as a trustee by APRA for his role in the affairs of the Fund.
Mr Elliott, a former partner of MV Anderson & Co, was the approved auditor responsible for the audit of the Fund. APRA previously disqualified Mr Elliott from acting as an approved auditor and as a trustee of any regulated superannuation fund for his role in the affairs of the Fund. Mr Elliott failed to qualify his audit report for the year ended 30 June 2000 in circumstances where he knew that the Fund had not complied with the SIS Act.
APRA Deputy Chairman Ross Jones said APRA and the members of superannuation funds should be entitled to rely on the integrity of professionals engaged to provide services to the trustees of superannuation funds. “Any attempts to mislead APRA must be taken very seriously,” Mr Jones said.
At the time of APRA’s investigation into the Wall & Ceiling Superannuation Fund, the Fund had assets valued at about $3 million and around 140 members employed in the plastering industry. The Fund is currently licensed and operated by a trustee.
Meanwhile, the Administrative Appeals Tribunal has overturned APRA’s disqualification in June 2004 of Ms Melva Blackley, a former employee of MV Anderson & Co, from acting as a trustee, investment manager or custodian of a superannuation entity or as a responsible officer of a body corporate that is a trustee, investment manager or custodian of a superannuation entity. Ms Blackley was earlier acquitted by the Melbourne Magistrates Court of one charge of making a false record with the intention of deceiving APRA in relation to the Wall & Ceiling matter.
Mr Hullin’s and Mr Elliott’s disqualification announcements can be viewed on the APRA website at http://www.apra.gov.au/media-releases/04_23.cfm. The disqualification register can be viewed at http://www.apra.gov.au/Disqualification-Register-List.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:
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
