Odyssey Equity Finance Pty Ltd was convicted in Dandenong Magistrates’ Court of failing to submit financial reports to ASIC for each of the financial years ending 30 June 2020, 2021 and 2022.
Odyssey, an Australian financial services licensee, was accused of:
- three counts of contravening s989B of the Corporations Act for failing to file a profit and loss statement and balance sheet; and
- three counts of contravening s989C of the Companies Act for failing to file an auditor’s report with the profit and loss statement and balance sheet.
Odyssey pleaded guilty on 7 March 2024. At the sentencing hearing on 24 April 2024, Odyssey, through its legal representatives, argued that Odyssey’s failure to submit financial reports to ASIC was not deliberate but a result of his ill health manager.
His Honor Medina was not satisfied that the director’s medical treatment prevented compliance and noted that he had the capacity to engage and instruct solicitors. However, his poor health and his guilty plea were mitigating factors.
Odyssey was discharged without conviction after providing security in the sum of $2,500 for good behavior for a period of 12 months under section 19B of the Crimes Act 1914 (Cth).
A specific condition of the bond is that Odyssey is required to comply with outstanding reporting obligations within the term of the bond.
Australian financial services licensees often handle large amounts of client funds and failure to submit annual accounts and audit reports impedes ASIC’s ability to determine a licensee’s true financial position and the value of funds held on behalf of clients.
The matter was prosecuted by the Commonwealth Director of Public Prosecutions following a brief and referral by ASIC.
The maximum penalty for a body corporate for each failure to file a statement of profit and loss and balance sheet (s989B(2) of the Corporations Act) is $1,332,000.
The maximum penalty for a body corporate for each failure to file an auditor’s report with statement of profit and loss and balance sheet (s989B(3) of the Corporations Act) is $1,332,000.