Former director sentenced to over four years imprisonment

Mudasir Mohammed Naseeruddin has been sentenced to four years and four months in prison following his guilty plea to charges of dishonest conduct and failure to discharge duties in good faith.

Naseeruddin goaded investors to rollover their superannuation monies into newly created self-managed superannuation funds (SMSFs) and to lend those funds to his two companies, Secure Investments and Aquila Group.

Between 13 May 2015 and 6 January 2020, Naseeruddin dishonestly obtained more than $520,000 from six investors, including three First Nations investors from rural New South Wales.

He misled the victims by promising that their funds would be invested in property developments, however, only a small portion was invested accordingly.

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Meanwhile, from 14 July 2016 to 23 December 2019, Naseeruddin further exploited his position as director of Secure Investments, extracting more than $550,000 from the company's accounts to purchase shares in a security company for his personal benefit.

ASIC froze the assets of Naseeruddin's companies in 2019, and successfully obtained orders in 2020 to wind them up.

"Investors were encouraged to set up SMSFs so they could access their retirement funds to invest in these property companies. Sadly, these investors were taken advantage of and their funds were used dishonestly," said ASIC deputy chair Sarah Court.

"Today's criminal outcome sends a strong message that dishonest conduct by directors will be investigated and prosecuted."

Naseeruddin's pleas of guilty were considered in sentencing, among other factors such as his youth and naivety at the time of offending, and good prospects of rehabilitation.

This matter was prosecuted by the Commonwealth Director of Public Prosecutions following an investigation and referral by ASIC.