The Australian Securities and Investments Commission (ASIC) has permanently banned Brian Jacques Creigh, the Director of Panacea Capital Pty Ltd, from providing financial services or being involved in any financial services business.
The decision comes after an investigation revealed that Creigh operated the Panacea Capital Cryptocurrency Investment Fund between April 2021 and June 2022 while unlicensed and engaged in misleading and deceptive conduct.
ASIC Permanently Bans Crypto Fund Director for Misleading Investors
According to ASIC's findings, Creigh provided fact sheets to investors that contained false and misleading information, including claims that Panacea Capital was providing a capital guarantee on the investment, had been in operation since 2016, and had targeted returns of 120% to 150%.
The fact sheets also suggested that Panacea Capital comprised teams of people with certain skills and knowledge when, in reality, the only employees were Creigh and one other person. Creigh transferred funds invested in the Crypto Fund overseas to invest in the LAG Fund, which turned out to be an investment scam, causing investors to lose approximately $7.7 million.
ASIC found that Creigh was not adequately trained or competent, as he failed to react to warning signs that he was dealing with scammers or dishonest individuals while operating the cryptocurrency fund.
"We take action where we see the most serious harm – or a risk of it – and in cases most likely to send a strong message of deterrence to others," Alan Kirkland, the ASIC Commissioner, commented during APAC’s Policy Week.
ASIC Commissioner Alan Kirkland spoke at @blockchain_apac Policy Week on 20 March, setting out our approach to innovation, regulatory reforms and enforcement in the #crypto sector https://t.co/GECpccMAV7 pic.twitter.com/8qggaPQwPp
— ASIC Media (@asicmedia) March 20, 2024
Furthermore, ASIC discovered that Creigh acted dishonestly and with a lack of integrity, trustworthiness, and judgment while managing the Crypto Fund. Despite being unlicensed, he operated the fund, provided false evidence during an ASIC examination, advised investors against cooperating with ASIC's investigation, and fabricated a fictitious Head of Client Services to communicate with investors. Although, Creigh has the right to appeal ASIC's decision to the Administrative Appeals Tribunal.
A month ago, ASIC intervened to halt the activities of another dishonest player in the cryptocurrency business, who promised a return of 20% on investment. Hala, from Redbank Plains, Queensland, faced allegations of offering unlicensed financial services via his company, A One Multi Services Pty Ltd.
ASIC Wipes Out 3,500 Fraudulent Investment Websites
Two weeks ago, the Australian regulator reported significant progress in its crackdown on investment scams. Recent data highlighted that since implementing ASIC's website takedown capability in July 2023, the regulatory body has successfully dismantled nearly 3,500 fraudulent investment websites.
In another important development, David Sipina has admitted guilt to two criminal charges connected to his role in orchestrating a Ponzi scheme involving more than $180 million through the Courtenay House trading company. The scheme reportedly enticed around 585 investors to contribute funds under the pretense of high returns from Forex and Futures market trading.
However, ASIC's investigation found that only a fraction of the collected funds were actually used for trading. Most of the capital from new investors was instead directed to pay off earlier participants, typifying the operations of a Ponzi scheme.
This article was written by Damian Chmiel at www.financemagnates.com.
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