Business & Finance

Assets of Former One.Tel Managers Frozen

June 13th, 2001

Mr David Knott, Chairman of the Australian Securities and Investments Commission (ASIC), today advised that ASIC has obtained court-enforceable undertakings restraining the disposal of assets by Messrs Jodee Rich, Bradley Keeling and Mark Silbermann.

The undertakings to the Court prohibit all three parties from disposing of any property (including monies and securities) subject to a number of conditions. The conditions include meeting ordinary living, business and operating expenses, reasonably incurred legal costs and any liability incurred before 8 June 2001 when it falls due.

The undertakings also extend to a number of private companies controlled by the defendants.

Messrs Rich, Keeling and Silbermann have undertaken not to leave the country without giving ASIC seven days notice in writing, a statement of the purpose of the trip and a copy of the proposed itinerary.

An undertaking was also provided by Mr Rich's wife Maxine, freezing the assets recently transferred to her by her husband. However, ASIC agreed not to seek the freezing of the assets of Beaulieu Holdings, or Ms Nicolet Long (Mr Rich's sister) after receiving undertakings freezing the assets of companies of which she is a director. The proceedings against them have been discontinued and dismissed respectively.

The undertakings have been given until 30 September 2001, and the matter will return to court on 24 September 2001.

"Today's undertakings impose extensive restraint on the disposal of assets by Messrs Rich, Keeling and Silbermann. They have extended the scope of the interim orders obtained from the Court last Friday, with appropriate variations, and cover assets which ASIC estimates are worth in excess of $45 million", Mr Knott said.

"Travel restrictions on all three parties will mean that ASIC is able to maintain access to them as our investigations into the collapse of One.Tel continue.

"These undertakings have the force of Court sanction and are a valuable precaution to protect creditor interests while ASIC's investigations continue.

"Today's proceedings do not constitute any finding of wrongdoing against any of the defendants", he said.