Australian Securities and Investment Commission v A&M Group Pty Ltd trading as Debt Negotiators [2022] FCA 1534

FEDERAL COURT OF AUSTRALIA

Australian Securities and Investment Commission v A&M Group Pty Ltd trading as Debt Negotiators [2022] FCA 1534 File number: NSD 1188 of 2021

Judgment of: BROMWICH J

Date of judgment: 16 December 2022

Catchwords: CORPORATIONS – application for declaratory relief and pecuniary penalties for contravening conduct – where defendant administered registered debt agreements under Part IX of the Bankruptcy Act 1966 (Cth) – where defendant engaged in conduct in relation to financial services that was misleading or deceptive or likely to mislead or deceive, in contravention of s 12DA of the Australian Securities and Investments Commission Act 2001 (Cth) (ASIC Act) and used undue harassment or coercion in connection with the supply or possible supply of financial services in contravention of s 12DJ of the ASIC Act – where ASIC seeks relief in relation to the defendant's conduct under s 12GBA of the ASIC Act (as it stood before 13 March 2019) – where contravening conduct is admitted – whether the quantum of the proposed pecuniary penalties is appropriate in reflecting principles of general and specific deterrence – Held: application granted, penalties of $650,000 be imposed upon the defendant; defendant to pay legal costs and investigation expenses totalling $150,000 (court order $80,000; ASIC order $70,000); total payments of $800,000; initial substantial payment and then payments to be made over time as agreed or adjudicated

Legislation: Australian Securities and Investments Commission Act 2001 (Cth) Subdivs C, D, GC; ss 1(2)(a), 1(2)(b), 1(2)(g), 12DA, 12GBA, 12GBA(2), 12GBA(3), 12GBCA(2)(a), 12DJ Bankruptcy Act 1966 (Cth) Pt IX Evidence Act 1995 (Cth) s 191 Federal Court of Australia Act 1976 (Cth) ss 21, 22, 23 Australian Consumer Law (being Sch 2 to the Competition and Consumer Act 2010 (Cth), s 50 Treasury Laws Amendment (2019 Measures No.3) Act 2020 (Cth) Sch 3 item 2 and 9