Broader implications for ASIC's Failure in illegal phoenixing case against liquidator

There are broader implications for ASIC's failure in a federal court case against liquidator Jason Bettles which alleged he was involved in the illegal phoenixing of collapsed property investment advisor Members Alliance Group. The relevant judgment can be read here.

Why this case matters is because ASIC was taking action against the liquidator for effectively facilitating and/or being involved in the phoenixing of the companies. The judgment illustrates the very real challenges both procedurally and from an evidentiary basis that ASIC faces in pursuing phoenixing and in particular the alleged involvement of insolvency practitioners in it.

So what?

Well, the excellent podcast on the Plutus Tax Fraud on the Fin podcast gives a detailed overview of how the $106M fraud was perpetrated.