The New South Wales Supreme Court has ordered the promoter of an illegal early release of superannuation scheme forfeit property to the Commonwealth following charges brought by the Australian Securities and Investments Commission.
The orders conclude proceedings against Andre Michalik by the Commonwealth Director of Public Prosecutions under the Proceeds of Crime Act after an investigation by ASIC into his financial services business between October 2003 and June 2004.
ASIC’s investigation into the activities of Michalik resulted from a number of newspaper advertisements featuring the catch phrase ‘superannuation cashback’, offering consumers early access to their superannuation savings for a commission.
This investigation found that Michalik submitted documents to superannuation companies falsely stating that his clients were rolling their superannuation savings into another superannuation fund.
According to ASIC, he then intercepted the cheques from the superannuation companies, totalling $846,515, and retained approximately $220,090 for his own use before transferring the balance into the bank accounts nominated by his clients.
In December 2004, Andre Michalik and his son, Martin Michalik, were jailed for 18 months and fined a total of $200,000 in the NSW Supreme Court following their conviction on contempt of court charges prosecuted by ASIC.
This followed their arrest at Perth International Airport on November 27, 2004 and subsequent extradition to New South Wales.
Yesterday, the NSW Supreme Court ordered Michalik to forfeit an investment in $5.7 million market linked Euro Medium Term Notes held by Citibank, Hong Kong, and other assets including a Cruisers Inc 1998 fibreglass motor cruiser purchased in March 2004 for $278,000, approximately $1 million held in Citibank accounts in Hong Kong, and $71,695 in cash.
“This result should send a clear and unequivocal message to anyone who may be thinking about defrauding the superannuation system,” ASIC’s deputy executive director of enforcement Allen Turton said.
“Fraudsters should understand that when they set out to commit offences against the system, they are not just risking jail, but also putting their assets on the line,” he added.
In May 2006, Michalik was sentenced to two years imprisonment in the New South Wales District Court after pleading guilty to six offences of engaging in dishonest conduct. These offences related to the fraudulent withdrawals, on behalf of 26 clients, of superannuation savings totalling $846,515. Another 20 offences were taken into account on sentence.
By Nelson Yap
