Clive Palmer charged with fraud over alleged dishonest transfers

Clive Palmer charged with fraud over alleged dishonest transfers

Mining mogul Clive Palmer has been charged with two counts of breaching directors' duties and two counts of fraud, with the Australian Securities and Investments Commission (ASIC) alleging he dishonestly enriched his own political party.

The corporate watchdog alleges Palmer dishonestly obtained a benefit for both his company Cosmo Developments and/or his political vehicle Palmer United Party (PUP) by authorising the transfer of $10 million between 5 August 2013 and 5 September 2013.

Further, ASIC alleges that Palmer dishonestly used his position as a director of Mineralogy, a mining company owned by him, in obtaining that advantage.

The watchdog has also charged Palmer for allegedly dishonestly obtaining a benefit for Media Circus Network (a PR firm that ran the PUP election campaign) and/or PUP by authorising the transfer of $2.1 million. ASIC again alleges Palmer dishonestly used his position as a director of Mineralogy in obtaining this advantage between 31 August 2013 and 3 September 2013.

Palmer is looking at a fine of $340,000 and/or five years imprisonment per offence relating to the breaches of the directors' duties.

The maximum penalty for the two counts of fraud is five years' imprisonment. However, if it can be established that there are circumstances of aggravation, the maximum penalty can be increased to 12 years.

The matter has been adjourned until 28 August 2020 and is being prosecuted by the Commonwealth Director of Public Prosecutions in the Brisbane Magistrates Court.

This is hardly the first time Palmer has found himself in court facing charges for breaching the Corporations Act.

In April 2018 the notorious Queensland businessman was charged with breaching takeover law arising from a proposed takeover of The Presidents Club (TPC).

There was also the issue of his failed nickel mining venture Queensland Nickel, which resulted in Palmer suing the administrators of the company for $1.2 billion.

Queensland Nickel, which operated the Yabulu refinery in Townsville, was placed into administration in April 2016, owing more than $150 million to creditors.

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Enjoyed this article?

Don't miss out on the knowledge and insights to be gained from our daily news and features.

Subscribe today to unlock unlimited access to in-depth business coverage, expert analysis, and exclusive content across all devices.

Support independent journalism and stay informed with stories that matter to you.

Subscribe now and get 50% off your first year!

Four time-saving tips for automating your investment portfolio
Partner Content
In today's fast-paced investment landscape, time is a valuable commodity. Fortunately, w...
Etoro
Advertisement

Related Stories

“Not our desired outcome”: Telix withdraws from $300m Nasdaq IPO

“Not our desired outcome”: Telix withdraws from $300m Nasdaq IPO

Telix Pharmaceuticals (ASX: TLX), one of the nation’s largest...

CommBank joins new ‘intelligence loop’ to combat SMS phishing scams

CommBank joins new ‘intelligence loop’ to combat SMS phishing scams

In an effort to reduce the number of SMS phishing scam victims...

Stralis Aircraft secures funding to make commercial hydrogen planes a reality

Stralis Aircraft secures funding to make commercial hydrogen planes a reality

Brisbane-based Stralis Aircraft has become one step closer to its a...

‘Gone the long yards’: Luxury boatbuilder Maritimo a stayer in local manufacturing

‘Gone the long yards’: Luxury boatbuilder Maritimo a stayer in local manufacturing

In an era when Australia’s mass-production car industry is a ...