Prime Trust founder Bill Lewski, who unlawfully ripped $33 million out of the retirement village operator in 2006, is a "worst-case" offender who should be banned permanently from being a company director, a court has heard.
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The Australian Securities and Investments Commission asked the Full Federal Court to increase a 15-year disqualification order handed down to the Melbourne businessman last year after he was found to have breached his director duties. ASIC has also asked the court to increase the $230,000 fine issued to Mr Lewski by the Federal Court last year.
"Mr Lewski's disqualification was manifestly inadequate. Mr Lewski knowingly acted in breach of his fiduciary duties in order to obtain benefits for himself," ASIC said in its submission.
The regulator said Mr Lewski's "unlawful actions" fell into the "worst-case" category.
ASIC has also asked the court to increase the $20,000 fine issued to former Federal health minister Michael Wooldrige, who was chairman of the entity charged with overseeing the trust when the payment to Mr Lewski was approved. The regulator is not appealing the two-year three-month ban handed down to Dr Wooldridge last year.
It has also asked the court to increase the $20,000 fines given to two other directors – Kim Jaques and Mark Butler. Mr Jaques and Mr Butler are appealing the fine and the four bans they each received.
ASIC is not appealing the $20,000 fine handed down to another company director, former Places Victoria boss Peter Clarke who was not banned as a company director. Mr Clarke is appealing the finding that he breached the Corporations Act when deciding not to vote on the payment to Mr Lewski after joining the board only a day earlier.
In its submissions, ASIC said Dr Wooldridge "failed to engage in conduct which a reasonable person in his position would have engaged in the circumstances" and that he "fell a very long way short of the required degree of care and diligence".
Mr Lewski and Dr Wooldridge are also appealing their respective bans and fines on the basis that ASIC took too long to bring the case against them. Under the law, ASIC has six years to bring legal action against someone accused of breaching the Corporations Act. Lawyers for Mr Lewski and Dr Wooldridge have separately argued it took six years and one month.
Judgment in the matter has been reserved.
