ASIC Disqualifies Director for Five Years Due to Company Failures and Fraud

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Print Share ASIC has disqualified Vincenzo Frank Tesoriero of Caulfield North, Victoria, from managing corporations for the maximum period of five years due to his involvement in the failure of the following 20 companies:

1. 123 High Street Taradale Pty Ltd ACN 639 872 512
2. 14 Kirwan Road Morwell Pty Ltd ACN 641 402 093
3. 160 Murray Valley Hwy Lake Boga Pty Ltd ACN 641 392 921
4. 275 High Street Golden Square Pty Ltd ACN 639 870 545
5. 31 Ellerman Street Dimboola Pty Ltd ACN 641 392 887
6. 4 Cowslip Street Violet Town Pty Ltd ACN 639 872 352
7. 55 Nolan Street Maryborough Pty Ltd ACN 641 392 912
8. 89 Betka Road Mallacoota Pty Ltd ACN 641 393 179
9. 9 Main Street Derrinallum Pty Ltd ACN 639 872 736
10. 23 Margaret Street Pty Ltd ACN 623 715 373
11. 286 Carlisle Street Pty Ltd ACN 610 042 343
12. Tesoriero Investment Group Pty Ltd ACN 161 088 115
13. 64-66 Berkeley St Hawthorn Pty Ltd ACN 643 838 662
14. 8-12 Natalia Ave Oakleigh Pty Ltd ACN 643 838 626
15. 193 Carlisle Street Enterprises Pty Ltd ACN 612 615 237
16. 9 Gregory Street Ouyen Pty Ltd ACN 641 392 707
17. Canner Investments Pty Ltd ACN 624 176 049
18. 308 Carlisle Street Holdings Pty Ltd ACN 613 047 439
19. 6 Bulkara Street Pty Ltd ACN 639 734 473
20. Forum Finance Pty Limited ACN 153 301 172 Nine companies were each the trustee of a trust that owned a petrol station in regional Victoria. Their business operations involved receiving rental income and meeting payments associated with the petrol station including lending, finance and other costs. Eight other companies held properties or investments in either their own right or in their capacity as the trustee of a trust.

ASIC found that Mr Tesoriero acted improperly and failed to meet his obligations as director in that he:

• caused or allowed 11 companies to receive funds totalling $2,105,015 from Westpac, which appeared to be obtained as a result of fraud
• caused or allowed 9 companies to make payments totalling $196,684.07 towards the mortgage of a house in which he lived, which caused detriment to those companies
• failed to ensure that 9 companies lodged numerous business activity statements and two years of income tax returns with the ATO
• failed to ensure that 17 companies maintained and kept adequate books and records, including Forum Finance Pty Limited, which failed to record in its accounts approximately $300m worth of inflows and outflows in its bank account, and
• failed to complete and submit a ROCAP to the liquidator for 19 companies. In disqualifying Mr Tesoriero, ASIC relied on supplementary reports lodged by Paul Allen and Glenn Franklin of PKF Melbourne, the liquidators of 123 High Street Taradale Pty Ltd, 14 Kirwan Road Morwell Pty Ltd, 160 Murray Valley Hwy Lake Boga Pty Ltd, 275 High Street Golden Square Pty Ltd, 31 Ellerman Street Dimboola Pty Ltd, 4 Cowslip Street Violet Town Pty Ltd, 55 Nolan Street Maryborough Pty Ltd, 89 Betka Road Mallacoota Pty Ltd and 9 Main Street Derrinallum Pty Ltd.

Mr Tesoriero is disqualified from managing corporations until 23 February 2031.

Mr Tesoriero has the right to seek a review of ASIC’s decision by the Administrative Review Tribunal.

Background

Section 206F of the Corporations Act allows ASIC to disqualify a person from managing corporations for a maximum period of five years if, within a seven year period, the person was an officer of two or more companies, and those companies were wound up and a liquidator provides a report to ASIC about each of the company’s inability to pay its debts. ASIC maintains a banned and disqualified persons register that provides information about people who have been disqualified from:

• involvement in the management of a corporation
• auditing self-managed superannuation funds, or
• practising in the financial services or credit industry.