Media and information releases

04-133 Former Pegasus director charged

Tuesday 11 May 2004

Mr Craig John McKim, of Labrador Queensland, appeared today in the Downing Centre Local Court, Sydney, on 39 charges under the Crimes Act, following an investigation by the Australian Securities and Investments Commission (ASIC).

Mr McKim, a former director of Pegasus Leveraged Options Group Pty Ltd (Pegasus) was charged with 32 counts of fraudulently taking funds for his own use, totalling $2,009,106. ASIC alleges the funds were withdrawn from an account that Pegasus held with the National Australia Bank.

Mr McKim was also charged with seven counts of making or using false instruments, or copies of false instruments, to induce investors to accept the instruments as genuine, in relation to the promotion of a managed investment scheme.

The alleged offences occurred during the period 25 July 2000 to 1 March 2001.

Mr McKim has not yet entered a plea and the matter will return to court on 22 June 2004.

The Commonwealth Director of Public Prosecutions is prosecuting the matter.

Background
Pegasus was an unlicensed financial services business, based in Crows Nest, NSW.

ASIC has previously taken civil action against Mr McKim and Pegasus in relation to the management of an unregistered managed investment scheme, and the offer of securities without a securities dealers licence. On 24 April, 2002, ASIC obtained orders for the winding up of both Pegasus and the scheme.

In addition, the NSW Supreme Court also banned Mr McKim from being involved in the management of a company for 30 years. Mr McKim and Pegasus were found to be operating an unregistered managed investment scheme, to have engaged in misleading or deceptive conduct and to have made misleading statements in order to entice investors into the scheme.

Updated: 11/05/2004