Four-Year Ban for Australia's Diamond Joe
March 14, 24
(IDEX Online) - Joe Gutnick, former director of Merlin Diamonds, has been banned from managing corporations in Australia for four years.
The Australian Securities & Investments Commission (ASIC) found he had allowed the company to lend AUS$13.7m (US$9.1m) to another company, Axis Consultants Pty Ltd (an accounting and consulting firm), where he was also a director.
"The loans caused detriment to Merlin and gave an advantage to Axis," said ASIC in a statement.
It also found that Gutnick - former president of the Melbourne Football Club and one of Australia's best-known businessmen - had allowed Merlin to trade while insolvent, failed to ensure it maintained complete financial records and failed to ensure it complied with its obligations as a public company.
It ruled that Gutnick, known as Diamond Joe, acted improperly and failed to meet his obligations as director of Merlin, Axis and Legend International Holdings, Inc. (which explored for phosphate, diamonds, and base metals in Australia). Axis is now deregistered, the other two companies are in liquidation.
Legend and Merlin owned a combined total of AUS$43m (US$28.5m) to unsecured creditors, said ASIC.
Gutnick is disqualified from managing corporations until 3 March 2028. He has the right to seek a review of the decision.
Merlin was wound up in 2020 after the company reported a series of losses and was suspended from the Australian Securities Exchange.
Pic of Joe Gutnick courtesy LinkedIn