ARITA cuts Wily in the wake of AFSA deal

Andrew Wily.
Courtesy www.andrewwily.com.au

THE association of insolvency professionals has revoked Andrew Wily's membership after the armstrongWily principal cut a deal with the bankruptcy regulator that allowed him to resign as a trustee in bankruptcy, rather than having his registration terminated involuntarily.

"In accordance with clause 7.1(b)(ii) of the Constitution, Mr Wily's membership was automatically terminated effective from 24 March 2015," the Australian Restructuring, Insolvency & Turnaround Association (ARITA) said today.

"Mr Wily recently relinquished his status with the Australian Financial Security Authority as a Registered Trustee. Through its statutory role in supporting AFSA under section 155H of the Bankruptcy Act, ARITA became aware of actions being undertaken by AFSA that invoked consideration of Mr Wily's ongoing membership under clause 7.1(b)(ii) of the ARITA Constitution," ARITA said.

The relevant section of ARITA's constitution states: "If, as a consequence of Disciplinary Proceedings or legal proceedings taken against a Member, a Sanction is imposed on the Member which:

"has the effect of terminating the Member's entitlement to remain a member of a Foundation Organisation or to continue to practise as an Insolvency Practitioner or legal practitioner, then the Member's Membership is automatically terminated;".

Fiorentino to fight on as CALDB declares failings "significant and extensive"

Pino Fiorentino

PINO Fiorentino will seek to overturn a decision by the Companies Auditors and Liquidators Disciplinary Board (CALDB) that has seen him stripped him of his liquidator's registration.

CALDB said in a statment: "The serious and extensive nature of the failings was such as to warrant cancellation of Mr Fiorentino’s registration."

Those "failings" relate to Fiorentino's handling of the affairs of ERB International, to which he was appointed primary liquidator in April, 2008.

According to CALDB the failings "involved a number of different aspects of the liquidation of ERB and involved dishonest use of position, failure to act in good faith in the best interests of ERB and its creditors, lack of competence and failure to comply with statutory provisions." CALDB reached its decision on June 24, 2014, ordering that the deregistration take effect after 14 days.

But Fiorentino told SiN he would ask the Administrative Appeals Tribunal (AAT) to review the evidence used by the Australian Securities and Investments Commission (ASIC) in its application to CALDB.

"This decision by CALDB is totally flawed," he said. "I want the court to make an order that until the review of the evidence by the AAT, it is not right for them to draw conclusions from wrong facts."

Fiorentino also said he's been denied a fair hearing. He said he had paid Tony McGrath of McGrathNicol $30,000 for an expert witness report and had not been given the opportunity to use it at the hearing on February 4, 2014, which took place without him because he refused to participate unrepresented by legal counsel.

Mark Levi wins new AAT review

MARK Darren Levi has forced the Administrative Appeals Tribunal (AAT) to review his appeal of a decision of the Companies Auditors and Liquidators Disciplinary Board (CALDB) declaring he was unfit to be a liquidator.

In the Federal Court last Friday, Justice Lucy Farrell ruled the Titan Advisory managing director had been denied natural justice when his application for a review of a CALDB decision was considered by AAT deputy president Robin Handley on July 4, 2013. (Read Justice Farrell's judgement here)

The judge issued a writ of certiorari quashing the AAT's July 5 finding and a writ of mandamus requiring the AAT to reconsider Levi's application for a review of the CALDB decision, which was handed down on June 14, 2013 but has not been published.

Justice Farrell ruled CALDB could not publish its original decision before the AAT reheard Levi's appeal. Similarly, the judge restrained ASIC from making any announcement.