Panacea Capital Director Permanently Banned by ASIC for Financial Misconduct

On March 21, the Australian Securities and Investments Commission (ASIC) has announced the permanent ban of Brian Jacques Creigh from providing financial services or engaging in any financial service business. The decision comes following an investigation into Creigh's activities as the director of Panacea Capital Pty Ltd, particularly his operation of the Panacea Capital Cryptocurrency Investment Fund (Crypto Fund) between April 2021 and June 2022.

ASIC's findings revealed that Creigh operated the Crypto Fund without the necessary license, falsely representing Panacea Capital as authorized under an Australian Financial Services license (AFSL). He also distributed misleading fact sheets to potential investors, falsely guaranteeing capital, misrepresenting the fund's inception date and targeted returns, and exaggerating the team's capabilities. These deceptive practices led investors to believe they were investing in a legitimate venture.

Moreover, Creigh transferred funds invested in the Crypto Fund overseas to invest in an entity known as Liquid Assets Group (LAG), which turned out to be a fraudulent scheme, resulting in losses totaling approximately $7.7 million for investors. Despite warning signs, Creigh failed to exercise due diligence, demonstrating a lack of competence in managing investors' funds.

ASIC's investigation further revealed Creigh's dishonest conduct, including providing false evidence during examinations and obstructing ASIC's inquiries by advising investors not to cooperate. Additionally, Creigh created a fictitious Head of Client Services to deceive investors, further highlighting his lack of integrity and trustworthiness.

Based on these findings, ASIC concluded that Creigh was not a fit and proper person to engage in financial services due to his fundamental lack of competence and integrity. Creigh has the right to appeal ASIC's decision to the Administrative Appeals Tribunal.

Background checks revealed that Creigh has been the director of Panacea Capital Pty Ltd since September 2015, and since August 2016, he has been its sole director and shareholder. Although Panacea was previously authorized by an AFSL licensee, Drashta Capital Pty Ltd, it has not held an AFSL since July 2018.