ASIC will cancel the registration of liquidator Mark Darren Levi following a successful application to the disciplinary body, the Companies Auditors and Liquidators Disciplinary Board (CALDB).

CALDB found that Mr Levi was persistently and seriously dishonest and, therefore, not a fit and proper person to remain registered as a liquidator.

CALDB found that in 2009 Mr Levi took $92,000 from Biseja Pty Ltd while it was in receivership and under the control of registered liquidator Jamieson Louttit. At the time of his alleged misconduct, Mr Levi was a senior staffer at Jamieson Louttit & Associates.

ASIC alleged Mr Levi dishonestly and without proper authority used the $92,000 for his own benefit. Mr Levi used the money to pay two personal tax bills.

CALDB found that Mr Levi engaged in serious dishonesty in misappropriating the funds, in falsifying records to disguise the misappropriation and in putting forward a false version of events after having admitted the misappropriation to Mr Louttit. Mr Levi’s dishonesty was not an isolated lapse, but involved dishonesty on numerous occasions from April 2009 to at least 2011.

‘Liquidators must maintain high professional standards,’ ASIC Commissioner John Price said.

‘Public confidence in insolvency practitioners would be seriously eroded if Mr Levi were allowed to continue to work as a registered liquidator.’

CALDB made its decision on 2 July 2013 but a series of stay and suppression orders sought by Mr Levi in the Supreme and Federal Courts and the Administrative Appeals Tribunal (AAT) prevented ASIC from reporting the outcome earlier.

ASIC’s investigation into Mr Levi’s alleged misconduct is continuing.

Mr Levi is seeking a review of CALDB’s decision with the AAT.

Background

Mr Levi is currently the managing director of Titan Advisory, a corporate recovery and advisory firm based in Sydney.

The CALDB ordered that Mr Levi’s registration be cancelled from 30 July 2013. The cancellation will not take effect until ASIC removes Mr Levi from its registers. ASIC will not do this until Mr Levi has been replaced as liquidator of his three current external administrations. The application to replace Mr Levi is listed for hearing on 26 August 2013 in the NSW Supreme Court.

The CALDB is an independent statutory body under the Corporations Act and has the power to cancel or suspend the registration of a liquidator or auditor.

The referral of Mr Levi to CALDB is the sixth action ASIC has taken recently against registered liquidators, including:

• three other confidential matters referred to the CALDB regarding practitioners’ alleged misconduct

• [This media release was withdrawn in accordance with ASIC policy - see INFO 152 Public comment on ASIC's regulatory activities.] and

• [This MR was redacted on 20/02/2023 in accordance with ASIC policy - see INFO 152 Public comment on ASIC's regulatory activities.]

Editor's note 1

At a hearing on 26 August 2013 in the NSW Supreme Court, Mr Mark Darren Levi obtained orders replacing him as liquidator of three external administrations. Mr Levi's registration has now been cancelled.

Mr Levi was removed as liquidator of Driver Skills Australia P/L, Golden Elephant Fabrications Industries (Aust) P/L and MFBC Australia P/L. Mr Levi was replaced by Adam Shepard of Farnsworth Shepard, Sydney NSW, for these liquidations.

Editor's note 2

On 24 December 2013, Mr Levi withdrew his application for review in the AAT. As a consequence the application was dismissed by the AAT, and Mr Levi's registration as a liquidator remains cancelled.