Sydney-based director David Henty Sutton had been hit with a life-long ban “from providing any financial services, performing any function involved in the carrying on of a financial services business, and controlling an entity that carries on a financial services business,” ASIC has reported.
The Australian financial services license of Sutton’s company, McFaddens Securities, now known by its previous name, APC Securities, has also been cancelled.
McFaddens is a Sydney-based financial services firm that had held an AFS licence since September 2009. Sutton became the firm’s director in July 2009 and has been the key person on the licence since September 2009.
ASIC said its concerns arose after Sutton made offers of investment in unlisted shares via McFaddens to Australian and overseas investors in companies. The companies included Steppes Alternative Asset Management, Trinus Impact Capital, Avalon Pacific Group (APG) and ASAF Critical Metals and its Australian subsidiary, Aus Streaming.
Sutton has also been disqualified from managing corporations for five years.
ASIC deemed Sutton to not be a fit and proper person to provide financial services, finding that he:
- used a misleading, false, deceptive, or dishonest statement to persuade another person/s to deal in a financial product
- made false, misleading, or deceptive representations to potential investors in his role as a director of McFaddens and APG
- engaged in a misleading and deceptive conduct regarding a financial product
- did not take reasonable steps to ensure McFaddens’ representatives did not accept conflicted remuneration
- was involved in and facilitated misconduct by Kristofer Ridgway
Sutton has also been found to have failed to exercise his power and discharge his duty with care and diligence in relation to his directorships of Paltar Petroleum and Aus Streaming, ASIC said.
McFaddens and Sutton have the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.
