The corporate regulator is in the throes of building a case against the directors of failed stockbroker BBY, including potential criminal charges, sources told Street Talk.
The Australian Securities and Investments Commission is said to have an enforcement team working on the BBY matter, including examining the actions of senior managers at the firm.
The regulator is assessing court proceedings under the Corporations Act and also whether any criminal behaviour was involved in the firm's 2015 demise, sources said.
An ASIC spokesman declined to comment.
ASIC has had an investigator sitting in NSW Supreme court proceedings this week, where former BBY clients are seeking the return of funds entangled in the collapse.
Glenn Rosewall, his father and tennis great Ken Rosewall and lawyer David Perkins were directors of BBY.
Another twist in the saga, involves the National Guarantee fund which has received more than 300 client claims relating to the BBY failure. The guarantee fund only covers compensation for certain losses incurred by investors and it has about assets of $102 million.
Despite paying out few claims over the past four years, the NGF has taken its grievances to court in an attempt to further limit the amount it will be required to pay to BBY clients. The compensation is already capped at about $11 million per firm.
Liquidator KPMG in its reports into BBY's collapse uncovered details on the shifting of clients' money by the firm to meet its own obligations and a lax compliance and governance culture.
KPMG believes BBY was insolvent as far back as 2011. It was also revealed the firm enlisted the help of a psychic to prepare revenue and cash flow forecasts for years before its collapse.
