The Federal Court of Australia has ordered four current and former directors of Endeavour Securities (Australia) Ltd (in liquidation) and Linchpin Capital Group Ltd (in liquidation) to pay $390,000 in fines.。

The Federal Court previously found that Endeavour directors Ian Williams, Paul Raftery, Paul Nielsen and Peter Daly (identified as an officer of Endeavour) violated their duties as officers of a registered managed investment plan responsible entity and did not act in the best interests of the members.。

Mr. Nielson, Mr. Williams and Mr. Rafterty did not challenge the Australian Securities and Investments Commission's case at the trial and agreed with the Australian Securities and Investments Commission's penalty opinion.。

Mr Nelson and Mr Williams will each pay $100,000 in fines and be barred from managing the company for four years.。

Mr Raftery will be fined $40,000 and banned from managing the company for three years.。

Mr Daly, who has pleaded guilty to prosecution by the Australian Securities and Investments Commission, will be fined $150,000 and banned from managing the company for five years.。

The court previously found that between 2015 and 2018, Mr. Nielsen, Mr. Raftery and Mr. Williams, and Mr. Daly:

◇ Failure to take all reasonable steps to ensure that Endeavour complies with its compliance program, obtains member approval for related party loans, and issues a Product Disclosure Statement that complies with the law; ◇ Failure to exercise care and diligence; ◇ Failure to act in the best interests of Investport Income Opportunity Fund members。

The court found that Mr. Daly and Mr. Raftery improperly took advantage of their positions to obtain unsecured loans for personal use from the unregistered Investport Income Opportunity Fund。Mr. Daly received loans totaling $130,000, and Mr. Raftery received a $40,000 loan.。

Mr. Nielsen, Mr. Raftery and Mr. Williams agreed to pay 17.$50,000, as cost of ASIC。Mr Daly was also ordered to pay 17.$50,000, and another portion of the Australian Securities and Investments Commission's expenses related to the Dispute Hearing。