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24 June 2003
News Release from Australian Securities and Investments Commission (ASIC)
Receiver and Manager Appointed to Alleged Cold-calling Operation in Sydney
The Australian Securities and Investments Commission (ASIC) has taken court action against Morgan Price Ltd (Morgan Price), a company ASIC alleges has represented itself as an Australian-based brokerage firm, promoting shares in US-based companies by way of cold-calling and hawking to investors in New Zealand and United Kingdom.
ASIC has obtained orders in the Supreme Court of New South Wales appointing a receiver and manager to Morgan Price. Mr Robert Elliott, of Hall Chadwick, has been appointed receiver and manager.
ASIC has also obtained injunctions against the company and its directors, Messrs Douglas Pestano, Robbie Joseph and Nicholas Seow, and officers of the company from promoting, offering or arranging on behalf of any persons or entity, any shares in a body corporate, or making any representations or statements regarding the promotion or offer of shares in a body corporate.
The orders also restrain the parties from dealing with or disposing of any money, shares, property, futures or options contracts, or other commodities purchased, received from, or held on behalf of clients of Morgan Price.
Further, Morgan Price has been ordered by the court to cease operating the company website.
ASIC alleges that Morgan Price has broken the law by operating a financial services business without holding the required Australian licence to do so. ASIC further alleges that the conduct of Morgan Price and its officers contravenes various provisions of the Corporations Act and the ASIC Act.
Additionally, ASIC alleges that Morgan Price, its directors and officers have engaged in unconscionable, misleading and deceptive conduct in relation to the offer of shares, and about the company's ability to legally conduct a financial services business in Australia and internationally.
ASIC began investigating the activities of Morgan Price on the grounds of intelligence gathered through complaints from individuals and organisations in New Zealand, the United Kingdom and Australia, and a referral received by the New Zealand Securities Commission.
ASIC's investigation is continuing. The matter will return to Court on 11 August 2003.
Cold-calling
Consumers are 'cold-called' when they are telephoned out of the blue and offered a chance to buy shares or other financial products, usually in a high-pressure environment. ASIC estimates Australians have lost over $400 million to cold-calling scams in the past three years.
ASIC's website at www.fido.asic.gov.au has more information for consumers, including a list of known cold-calling outfits and tips on how to protect yourself.
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For further information contact: Peter Kell Executive Director Consumer Protection Telephone: 02 9911 2092 Mobile: 0412 967 384 |
Angela Friend ASIC Media Unit Telephone: 03 9280 3338 Mobile: 0412 058 800 |