The Australian Securities & Investments Commission reported that the Federal Court has imposed AUD 2.8 million in penalties on Open4Sale Global Ltd managing director Simeon La Barrie and director Ewald Hafer for fundraising without compliant disclosure documentation. The Court found Open4Sale and the two directors raised more than AUD 1.3 million from 83 investors between March 2019 and July 2023 without lodging a disclosure document with ASIC or providing one to investors, while declining to order penalties against the company. Investors were provided with marketing pitch decks and application forms, including unverified claims that Open4Sale would generate US$57 billion in revenue in five years despite having no reasonable basis for the forecast. Financial reports before the Court showed Open4Sale generated no income between 2016 and 2022 and accumulated nearly AUD 9 million in net losses, and evidence showed Mr La Barrie transferred more than AUD 1.4 million of investor funds to accounts associated with him, including for personal expenses. The judgment also found Mr Hafer received AUD 137,975 in commissions for bringing in new investors and failed to stop fundraising despite the absence of a disclosure document. Mr La Barrie was fined AUD 2 million and disqualified from managing corporations for 12 years, and Mr Hafer was fined AUD 800,000 and disqualified for eight years. Mr La Barrie and Open4Sale were restrained from future non-compliant fundraising for 12 years, and Mr Hafer for eight years.
Australian Securities & Investments Commission 2025-09-01
Australian Securities & Investments Commission secures AUD 2.8 million in Federal Court penalties and multi-year bans for Open4Sale Global fundraising disclosure breaches
The Australian Securities & Investments Commission announced that the Federal Court imposed AUD 2.8 million in penalties on Open4Sale Global Ltd's managing director Simeon La Barrie and director Ewald Hafer for fundraising without compliant disclosure documentation. They raised over AUD 1.3 million from 83 investors without proper disclosure, misleading them with unverified revenue claims. Mr. La Barrie was fined AUD 2 million and disqualified from managing corporations for 12 years, and Mr. Hafer was fined AUD 800,000 and disqualified for eight years.