“Red Flag” Documents

Red Flag

One of the most obvious aspects of Australia’s Worst White-Collar Crime is the number of documents that bear the signatures of persons who have either:

  • been convicted of offences related to dishonesty, and/or
  • been banned by ASIC or APRA, and/or
  • been the subject of major and well publicised investigations
 

These documents should be “Red Flag” documents to any Trustee or regulatory authority, worthy of further examination and investigation.

It should be noted the persons who have been convicted of a offence related to dishonesty cannot hold the position of a “Responsible Person” for a Trustee of a Government Regulated Superannuation Fund, pursuant to the Superannuation Industry (Supervision) Act 1993.

This would indicate that if the signature of a person convicted of an offence related to dishonesty appears on a Deed that purports to vary the terms of a superannuation trust, this document should rank highly as a “Red Flag” document worthy of further examination and investigation.

 

The following “Persons of Interest” have signed instruments that purport to vary the terms of an occupational pension fund established on the 23 December 1913:

  • Ken Jarrett
  • John Dorman Elliott
  • Ken Biggins
  • Geoffrey Cohen
 

Persons - Red Flags

Ken Jarrett, John Dorman Elliott and Ken Biggins were the subject of three major investigations by the former National Crime Authority (NCA) and Mr Jarrett served a term of imprisonment for dishonesty.

John Dorman Elliott and Ken Biggins escaped facing a jury, when Vincent J, a vocal critic of the NCA, ruled that evidence obtained by the NCA was inadmissible and then declared Elliott, Biggens and Peter Scanlon “not guilty“. However the ruling of Vincent J was later overturned by the Victorian Court of Appeal.

The “Double Jeopardy Rule” however prevented Elliott and Biggins being subject to a re-trial.

Vincent J should have disqualified himself as judge based on legal principle of a reasonable apprehension of bias in relatio to the National Crime Authority.

John Elliott was later banned by ASIC from being a company Director.

Geoffrey Cohen was banned by APRA.

The signature of Ken Jarrett appears on a purported Deed of Variation dated 26 August 1986.

Purported Deed of Variation 26 Aug 86 The signature of John Dorman Elliott appears on a purported “Resolution” dated 20 December 1982 Purported Resolution 20 Dec 1982

The signature of Ken Biggins appears on two purported “Resolutions” dated 15 December 1989 and 3 September 1989,

The signature of Geoffrey Cohen appears on ¬†eight purported “Resolutions” dated:
  • 5 August 1993
  • 29 July 1994
  • 10 June 1998
  • 18 June 1998
  • 27 October 1999
  • 3 October 2000
The purported “Resolution” dated 18 June 1998 has special significance since this document purports to close the Defined Benefit Fund to new members and to establish a purported Accumulation Fund (also known as a “Money-Purchase Scheme”. Purported Resolution 18 Jun 1998  

One of the requirements of the Power of Amendment is that a “Deed” must be used as the instrument to vary the terms of the occupational pension trust established on the 23 December 1913. The Stamp Duties Act 1923 (SA) requires all Deeds related to trusts established in South Australia and where the governing law is that of South Australia prior to 1 July 2006.

The Power of Amendment {Regulation 50} is referenced by the Elder Smith & Co Limited Provident Funds Act 1963 (SA).

The documents signed by Ken Biggins and Geoffrey Cohen are not Deeds and have not been duty stamped as Deeds so they can be immediately classified as void an ineffective in amending the terms of the occupational pension trust.

Furthermore none have been executed by a majority of the Directors of the sponsoring Employer as required by Regulation 50, but have instead been executed on behalf of the legal person (the company).

More details of the “Red Flag” documents can be found here.  


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This tab updated on 19 March 2015