ASIC media releases are point-in-time statements. Please note the date of issue and use the internal search function on the site to check for other media releases on the same or related matters.

Tuesday 20 August 2019

19-214MR ASIC disqualifies Cairns director from managing companies after engaging in illegal phoenix activity

ASIC has disqualified Mr Steven Paul Corradi of Redlynch, QLD, from managing companies for five years, the maximum disqualification period, because of his involvement in seven failed companies.

Mr Corradi was disqualified after liquidators were appointed to ACN 136 766 777 Pty Ltd ACN 136 766 777 (formerly known as ‘I want that Course’ Pty Ltd) and IWTC Pty Ltd ACN 159 750 259.

ASIC found Mr Corradi had:

  • failed to exercise his duties as a director with due care and      diligence;
  • improperly used his corporate position to gain an advantage for himself;
  • failed to prevent the companies from trading whilst potentially insolvent;
  • failed to pay taxes; and
  • enabled conduct that showed evidence of illegal phoenix activity.

In making its decision to disqualify Mr Corradi, ASIC relied on supplementary reports that were lodged by the liquidators of the companies, including Todd William Kelly (the Liquidator) of BDO (NTH QLD). ASIC assisted the Liquidator to prepare the supplementary reports by providing funding from the Assetless Administration Fund.

The total amount of debts owed by the companies to creditors was more than $2 million.

Mr Corradi's disqualification took effect from 23 July 2019.

Background

Section 206F of the Corporations Act allows ASIC to disqualify a person from managing corporations for up to five years if, within a seven-year period, the person was an officer of two or more companies that were wound up and the liquidators lodge reports with ASIC about each company’s inability to pay its debts or if the liquidator alleges misconduct.

ASIC also 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 (SMSFs); or
  • practicing in the financial services of credit industry.

ASIC is a member of the Phoenix Taskforce, which comprises federal, state and territory government agencies who collaborate to combat illegal phoenix activity. The aim of the Phoenix Taskforce is to provide a whole-of-government approach to identify, disrupt and prosecute those who engage in or facilitate illegal phoenix activity.

Suspected phoenix activity can be reported by completing a Phoenix activity tip-off form online at the ATO website or by calling 1800 060 062.

Last updated: 20/08/2019 10:25