The court found Suleman had, through Karl Suleman Enterprises (KSE), operated a managed investment scheme that should have been registered, carried on a securities business without holding a dealers licence, and carried on an investment advice business without holding an investment advisers licence.
However, the battle is not over with an application for damages made against Suleman and wife Vivian being adjourned until July 22. Restraining orders preventing the pair from travelling or accessing assets in their name still hold.
-In respect to the companies' creditors meeting today, the decision don't mean a great deal," said the Australian Securities and Investment Commission's (ASIC) enforcement director Allen Turton. -The only thing they could get out of this is the satisfaction of seeing him banned for what he did."
In separate proceedings, the liquidators of KSE and the Froggy Group of companies are conducting public examinations of agents who worked with Suleman, and there is still no clear indication of how much Suleman's jilted investors are likely to receive.
While there is still no clear indication of how much Suleman's jilted investors are likely to receive, liquidator Paul Weston said he was pleased with the progress of the inquiry he is conducting on behalf of Howorth Accountants.
-We have managed to uncover significant information regarding the AU$65 million initially unaccounted for, and have been able to identify a significant proportion of that black hole," Weston said. -There will be a break in proceedings for a month, then we have a further 10 days of examinations after which time we will be in more of a position to decide what sorts of action can be taken, and strategies put in place."
Weston went on to assure Suleman's creditors that they would shortly be receiving a report, aimed at informing them of the status of the investigations, and what they are likely to be able to expect in terms of outcomes.
Suleman initially enjoyed significant support from the 900 investors who sunk approximately AU$60 million into his unregistered scheme. However, as further details were revealed, he quickly became a pariah within Sydney's Assyrian community.
While most of the companies in the Froggy group were wound up, Froggy ISP was sold in February this year to entrepreneurs John Paterson and Tim Berry, and continues to operate.
