Commission bans finance company

The Securities Commission has stopped a company raising $15 million from the public.

Monday, 19 March 2007

Classic Capital’s sole director, Keith McCoy is bankrupt, banned from management, and facing charges of forgery and dishonestly using his position as a company officer, all in Australia. The prospectus did not state these facts.

“A prospectus must contain all material information about an offer of securities,” Securities Commission director of primary markets Kathryn Rogers says.

“McCoy’s bankruptcy and management ban relate directly to his competence to handle investors’ money and to run a finance company. The fact that he is facing criminal charges, although these have not yet been heard, would also be likely to influence people deciding whether or not to invest.”

McCoy told the commission that he is appealing the management ban and that the criminal case has not yet been decided. He agreed that the prospectus should be cancelled.

Classic Capital had been seeking to raise $15 million by issuing secured debenture stock.

Comments from our readers

No comments yet

Add your comment:

Your name:
Your email:	Not displayed to the public
Comment:
Comments to Deposit Rates go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Anti-spam verification:

Type the text you see in the image into the field below. You are asked to do this in order to verify that this enquiry is not being performed by an automated process.