ASIC Charges Former MP with Fraud, Director Breaches

Source: Regulation Asia Editors, Regulation Asia 2020-07-20

Former MP Clive Palmer is said to have using his mining company to channel over A$12.1 million into his political party’s 2013 election campaign.

ASIC (Australian Securities and Investments Commission) has charged former politician and businessman Clive Palmer for fraud and for using his company to channel more than AUD 12.1 million into his party’s 2013 election campaign.

Palmer, 66, is charged with committing two counts of fraud by dishonestly gaining a benefit or advantage. The maximum penalty for each charge is five years’ imprisonment; 12 years if aggravating circumstances are established.

He is also charged with two counts dishonest use of position as a director, the maximum penalty for which is AUD 340,000 or imprisonment for five years, or both.

In the weeks ahead of the September 2013 election, Palmer is said to have channelled AUD 10 million into the Palmer United Party (PUP) via Cosmo Developments, and another AUD 2.1 million via Media Circus Network.

In both cases, he is said to have used Mineralogy, a mining company he owned, to effect the transfers.

According to the Guardian, the PUP spent heavily on advertising at the 2013 election, and Palmer was later elected to the House of Representatives as MP for Fairfax, Queensland. Three other PUP candidates also became senators.

ASIC laid the charges in March but has not revealed the details of its case until now. The matter has been adjourned until 28 August.

Palmer reportedly says the charges are “nonsense”, arguing that Minerology was free to pay money to its subsidiaries or donate to political parties.

Palmer retired from parliamentary service prior to the 2016 general elections, though he is said to have spent at least AUD 60 million campaigning in last year’s elections.

ASIC

fraud

ASIC Charges Former MP with Fraud, Director Breaches

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