Palmer fires counter shot in Coolum fight
MILLIONAIRE former politician Clive Palmer's defence against criminal charges brought by the Australian Securities and Investments Commission has taken the form of a counterattack.
Mr Palmer was served with a summons in early April to attend a June 13 pre-trial hearing in Brisbane relating to allegations he had breached takeover laws relating to his proposed 2012 buy-out of The President's Club Ltd.
ASIC's allegation was that Mr Palmer, as a director of Palmer Leisure Coolum, had publicly proposed to make a takeover bid for The President's Club securities but had not made an offer within two months as required under section 631 (1) of the Corporations Act.
If proven, the offence carries a maximum penalty of two years' imprisonment and fine of $11,000 for an individual, and fines of $55,000 in respect of the corporation Palmer Leisure Coolum Pty Ltd which has also been charged.
Mr Palmer has struck back, issuing summons on behalf of Coeur De Lion Investments which allege The President's Club operated a managed investment scheme that was not registered, contrary to section 601ED of the Corporations Act.
The summons level criminal charges against directors Bruce Murdoch Wallace, 67, of Taringa, Patrick John Kelly, 67, of Cooparoo and Ian George Lewis, 72, of Brighton in Victoria for aiding, abetting, counselling and procuring the club to commit an offence and require them to attend the Brisbane Magistrates Court on June 28.
In a statement yesterday Mr Palmer said the charges related to the directors ongoing failure to abide by a Federal Court finding in 2015 to register the TPC time-sharing scheme at Palmer Coolum Resort as a managed investment scheme.
He claimed the "potential liability of the resort and the owners of the resort that may have arisen from being involved with the unlawful operation of the unregistered TPC time-sharing scheme" as the reason operations had ceased at Palmer Coolum Resort since April 2012.
"This is also a key reason why Palmer Leisure Coolum Pty Ltd (PLC), refrained from proceeding with a purchase offer for interests in the TPC time-sharing scheme in June 2012," he said.