Disciplinary committee decision appealed

The supposedly independent committee that convene after ASIC – whose delegate always chairs – has decided that a show cause notice has been inadequately responded to have in recent times recorded only a modest strike rate.

Days before Christmas the Committee released its decision in relation to RegLiq and Aston Chace co-founder Steve Naidenov.

Regular readers of iNO will know that if nothing else, Naidenov suffers from suspicion-by-association syndrome, an affliction he contracted after teaming up years ago at Veritas Advisory with phoenix-facilitator and disgraced ex-liquidator David Iannuzzi.

While the Commissioner of Taxation (CoT) forced Iannuzzi to consent to a range of court orders in 2019 including that his liquidator’s ticket be cancelled and he be barred from reapplying for 10 years, Naidenov was not pursued in relation to that matter involving western Sydney firm Banq Accountants & Advisors.

Prior to the Banq Accountants matter there had been a deal of external scrutiny in relation to the administration and liquidation of the MK Floors Group of Companies, to which Iannuzzi and Naidenov were appointed administrators and then liquidators back in 2016.

In its December 23, 2023 ruling the Committee noted Naidenov failed to act with the degree of due care and diligence required of a registered liquidator but rejected ASIC’s contention that Naidenov “was not a fit and proper person to remain as a registered liquidator”.

At the heart of the ASIC show cause to Naidenov was the fact that as liquidators he and Iannuzzi had authorised payments from an administration bank account to other companies in the group without the benefit of a pooling order, that were in some instances unnecessary and were made without sufficient documentation.

The involvement of Achilles “Big Al” Constantinidis in the attempted restructure of the MK Group didn’t help of course and Iannuzzi and Naidenov were tickled pink during public examinations run by FEG in 2018 after it paid out $1.6 million to MK employees.

In punishing Naidenov the Committee orders that he refrain from accepting appointments until April 30 2024 and be required to have six of his external administrations reviewed by a “peer” reviewer at his own costs. The six files are to be selected by ASIC.

In the meantime, a Committee that delivered a decision last October in respect of the referral of Sydney liquidator Giles Woodgate has found its conclusion shunted off to the Administrative Appeals Tribunal (AAT) with the parties likely to sent to mediation in April. iNO will divulge more on this one shortly.