ASIC has obtained interim travel restraint orders against Stephen Vincent McGovern, the managing director and CEO of Dubber Corporation, and Mark Madafferi, a solicitor and the principal of Christopher William Legal.
These orders, issued by the Federal Court, prohibit both McGovern and Madafferi from leaving Australia until Sept. 13, pending further court directives.
The decision came after a hearing on March 18, conducted on an ex-parte basis, where the defendants were not present to offer their responses.
The inquiry into the conduct of McGovern and Madafferi was initiated on March 1, following notifications by Dubber Corporation to both ASIC and the Australian Securities Exchange (ASX) regarding McGovern’s suspension.
ASIC’s investigation centers around the alleged improper handling of term deposit funds belonging to Dubber Corporation or one of its subsidiaries, supposedly managed in trust by Madafferi. Currently, $26.6 million remains untracked, raising significant concerns about potential breaches of the Corporations Act.
With the investigation in its early stages, neither McGovern, a British national with permanent residency in Australia, nor Madafferi, an Australian citizen, has had the chance to formally address the allegations presented by ASIC’s application.
The case is scheduled for further examination in court on March 27, where more details regarding the alleged financial misconduct and the futures of McGovern and Madafferi within the legal framework will be discussed.
Recent ASIC actions include the permanent ban on Brian Jacques Creigh, the director of investment company Panacea Capital, and on Shane Rose, who has worked with Octillion Partner, from providing financial services or engaging in a financial services business.
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