The corporate watchdog has stepped in to stop the financiers of a tech start-up endorsed by cricketer Shane Warne and troubled former Australian basketballer Shane Heal from issuing shares to some investors.
The Australian Securities and Investments Commission issued a declaration on Friday to stop Gold Coast financier Darren Herft and a cohort of accountants from tipping mum and dad investors into tech company Kwickie.
The intervention by ASIC comes as the regulator ramps up its investigation into Mr Herft's company AMMA Private Equity which is promoting the scheme.
Kwickie, an app that allows short video messages to be shared on mobiles, has grabbed headlines in recent months due to its links to the failed Gold Coast music streaming service Guvera.
Two major Guvera companies, which are also in ASIC's sights, collapsed in June last year after raising nearly $200 million from investors.
Guvera was backed by investors sourced through AMMA Private Equity and a network of accountants. Mr Herft was a director of some Guvera companies. He has been contacted for comment.
In its statement, ASIC said it was concerned about mum and dad investors being incorrectly labelled as sophisticated investors to allow those investors to buy Kwickie shares.
Under Australian companies law, only sophisticated investors are allowed to buy shares in a company without that company first issuing a prospectus.
ASIC has also sent letters to the key accounting bodies warning the associations of their members' dealings with Kwickie.
The letters, seen by Fairfax Media, show ASIC has been warning accountants at the three major accounting bodies about their members' dealings with investors in both Kwickie and Guvera since August last year.
"ASIC is aware that, in certain recent fundraisings, some accountants have used trust or company structures that purport to allow investors who are not 'sophisticated investors' to receive offers to purchase shares without a prospectus or other disclosure document," the regulator said in a statement.
It added that this had recently occurred in relation to offers of shares by Kwickie International Limited.
"ASIC has made a declaration, to put the issue beyond doubt, that Kwickie International Ltd shares may not be offered to retail investors through a trust structure."
ASIC has taken no formal action has been taken against Mr Herft.
Kwickie has managed to swing key celebrity endorsements including from Shane Warne and former NBA and Boomers star Shane Heal. Mr Heal is facing fraud charges on an unrelated matter. He is defending the matter.