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Professional Misconduct

Karl Heinz Veljkovic


Address: Beaconsfield, Melbourne, Victoria, Australia
Age: 80
Sex: Male
Occupation: Company Director/Executive
Date: 8 April 2009


Details



A Melbourne man has been sentenced on 8 April 2009 in the County Court of Victoria to a total of two and half years imprisonment in relation to the misuse of superannuation funds, following an ASIC investigation. 

The Court ordered that six months of the total sentence be served concurrently.

Mr Karl Heinz Veljkovic, of Beaconsfield, Victoria, was immediately released on a recognisance of $10,000 to be of good behaviour for three years. He had pleaded guilty to both charges in November 2008.

Mr Veljkovic was sentenced to two years jail for dishonestly concealing or withholding material facts when inducing people to redeem their superannuation funds and roll them into a self-managed super fund. Mr Veljkovic admitted that he did not disclose his interests in Supatrust Finance Ltd (Supatrust) or other companies that had financial dealings with Supatrust when he provided advice to a client to lend nearly all of their available superannuation to the company. 

Mr Veljkovic, 70, was also sentenced to twelve months jail for dishonestly using his position as a director Aarosonic Credits Limited (Aarosonic). ASIC alleged that Mr Veljkovic transferred a loan of $33,268.63 made to Aarosonic from a client’s self-managed superannuation fund to Supatrust. 

Mr Veljkovic also admitted committing 14 summary offences between July 2000 and October 2001, and asked the Court to take these into account when passing sentence on the two indictable charges. 

The summary offences included being knowingly involved in the operation of an unlicensed securities and investment advice business by Teilis Financial Services Pty Ltd (Teilis), failing to disclose his pecuniary or other interests when making securities recommendations to clients of Teilis, failing to keep financial records as a company officer of Teilis, Aarosonic, Supatrust, Texol Petroleum Services Pty Ltd and H.B.L. Holdings Ltd (H.B.L.), and failing to complete and return a questionnaire to the liquidator of Teilis, Aarosonic and H.B.L. as required.


In March 2001, following an ASIC application, the Federal Court appointed liquidators to six companies operated by Mr Veljkovic and Mr Barry Patrick that allegedly misused superannuation funds. The entities involved were: Teilis Financial Services Pty Ltd, Aarosonic Credits Limited, Supatrust Finance Ltd, Pacific Petroleum Services Pty Ltd, H.B.L Holdings Pty Ltd, and Texol Petroleum Services Pty Ltd.

In October 2001, the Federal Court made orders by consent that Mr Veljkovic and Mr Patrick be restrained until 11 October 2006 from soliciting money from a regulated superannuation fund for an unregistered managed investment scheme; carrying on an unlicensed securities business which involves the soliciting of money from a regulated superannuation fund; and carrying on an unlicensed investment advice business which comprises advice to a regulated superannuation fund.

In February 2007, following an ASIC application, the Federal Court appointed Simon Wallace-Smith and Timothy Bryce Norman of Deloitte as liquidators to E.K.B Properties Pty Ltd, Sandgrove Specialised Securities Ltd and Cardinia Specialised Securities Ltd, entities controlled and/or managed by Mr Patrick and Mr Veljkovic.

Mr Veljkovic and Mr Patrick also consented to Federal Court orders banning them from:



  • carrying on a financial services business;

  • parting with any funds that have come into his possession by issuing, selling or offering a financial product; and

  • managing corporations for a period of 20 years.


ASIC is also seeking orders that Mr Veljkovic and Mr Patrick be found guilty of contempt of Court after allegedly breaching previous orders made by the Federal Court on 11 October 2001. This matter has been adjourned to a later date.