Super Funds Lent To Kindie, Directors Ordered To Pay $1m
Sydney Morning Herald
Wednesday July 17, 2002
The Australian Securities and Investments Commission has secured $1 million compensation from four former directors of QLS Superannuation as part settlement of civil penalty proceedings.
The four former QLSS directors are Gerald Leonard Parker, Anthony Ashton Tarr, Brendan Matthew Frankcombe and Mercedes Barrie.
They have not admitted liability and the compensation is to be paid by their insurer.
QLSS is the trustee of the Law Employees Superannuation Fund, which has about 6800 members, employees of law firms.
The ASIC action was launched against the four former directors after QLSS lent $2.5 million to the operator of a Gold Coast childcare business in July 1997. The loan, which went into default, represented 14 per cent of the fund's assets.
A Senate committee was told in 2000 that Mr Parker was company secretary of the trustee company as well as a financial adviser to the Gold Coast childcare centre.
ASIC has dropped its action for compensation against the four former directors but is pursuing civil penalty proceedings and a disqualification order against Mr Parker.
That action is due to be heard next week.
Last February, Dr Tarr, Mr Frankcombe and Ms Barrie made an unsuccessful application to the Federal Court to have the ASIC claims against them dismissed.
Mr Frankcombe and Ms Barrie recently resigned as directors of QLSS.
© 2002 Sydney Morning Herald
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