ASIC has permanently banned the former director of an insurance broking company, Timothy Charles Pratten of New South Wales, from providing financial services and from engaging in credit activities.
Mr Pratten was banned after being convicted on seven counts of dishonestly obtaining a financial advantage from the Commonwealth by deception. This conviction followed an investigation by the Australian Taxation Office, in which it was found that Mr Pratten failed to declare approximately $5 million of income derived by him during financial years ending 2003 to 2009.
On 29 April 2016, Mr Pratten was sentenced to five years jail with a two-year non-parole period. Under the Corporations Act and National Credit Act, ASIC may ban anyone who is convicted of a fraud offence.
Mr Pratten has the right to appeal to the Administrative Appeals Tribunal for review of ASIC’s decision.
As a result of Mr Pratten’s conviction, he is automatically disqualified from managing corporations. He has been removed as a company office-holder of Practical Insurance Claims Administration Pty Limited and Australian financial services licensee, Rural & General Insurance Broking Pty Limited.