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Auditor To Dodgy Firm Linked With Appliance Retailer Publisher Fined

The auditor of dodgy tech player Big Un who was linked with Appliance retailer publisher Intermedia has been fined to comply with audit standards.

65-year-old Graham Swan, who worked for the Sydney-based accounting practice Rothsay Auditing got off lightly with a 2,000 fine after charges against the Perth-based auditor were downgraded.

The maximum penalty was $10,500 maximum penalty at the time that he approved the questionable practices of Big Un directors.

If investigators had pursued the original investigation and proceeded with charges of making a false and misleading statement Swan could have got five years imprisonment and/or a fine of $42,000.

Back in 2017 Big Un was one of the hottest stocks around until it was revealed these sales were largely made up of cash that had been advanced to the business by FC Capital.

When the accounts were restated on orders from ASIC, its revenue and cash balance plunged by millions of dollars.

Picture Shows Brandon Evertz a director at Big Un on the day that Big Un was listed on Wall Street.

The stock was suspended from trading for three months and investors lost hundreds of millions of dollars when the business collapsed, which caused some people to consider taking their lives.

At the time the publishers of Appliance Retailer tried to stop ChannelNews reporting claims about links to the business outlined in the Companies dodgy documentation and prospectus.

Back in 2018 Big Un found themselves under investigation by the Australian Companies and Securities Commission after a claimed deal with Intermedia to buy several of their publications and serious questions, about the operations of the business which at the time.

Big Un, and the contracts it claimed to have signed with Intermedia along with Big Un statements made in prior Company reports and filings to the ASX were investigated by the ASX for some time.

Big Un chief executive Richard Evertz was convicted in 1994 on two counts of blackmail, for which he spent time in prison.

Big Un was co-founded and led by Brandon Evertz who loved to tell the world how good he was.

The AFR claims that the modest penalty runs counter to ASIC’s push to improve audit standards and deter poor audit quality, which has been a recent priority for the corporate regulator.

HowevThe auditor of dodgy tech player Big Un who was linked with Appliance retailer publisher Intermedia has been fined to comply with audit standards.

65-year-old Graham Swan, who worked for the Sydney-based accounting practice Rothsay Auditing got off lightly with a 2,000 fine after charges against the Perth-based auditor were downgraded.

The maximum penalty was $10,500 maximum penalty at the time that he approved the questionable practices of Big Un directors.

If investigators had pursued the original investigation and proceeded with charges of making a false and misleading statement Swan could have got five years imprisonment and/or a fine of $42,000.

Back in 2017 Big Un was one of the hottest stocks around until it was revealed these sales were largely made up of cash that had been advanced to the business by FC Capital.

When the accounts were restated on orders from ASIC, its revenue and cash balance plunged by millions of dollars.

The stock was suspended from trading for three months and investors lost hundreds of millions of dollars when the business collapsed, which caused some people to consider taking their lives.

At the time the publishers of Appliance Retailer tried to stop ChannelNews reporting claims about links to the business outlined in the Companies dodgy documentation and prospectus.

Back in 2018 Big Un found themselves under investigation by the Australian Companies and Securities Commission after a claimed deal with Intermedia to buy several of their publications and serious questions, about the operations of the business which at the time.

Big Un, and the contracts it claimed to have signed with Intermedia along with Big Un statements made in prior Company reports and filings to the ASX were investigated by the ASX for some time.

Big Un chief executive Richard Evertz was convicted in 1994 on two counts of blackmail, for which he spent time in prison.

Big Un was co-founded and led by Brandon Evertz who loved to tell the world how good he was.

The AFR claims that the modest penalty runs counter to ASIC’s push to improve audit standards and deter poor audit quality, which has been a recent priority for the corporate regulator.

However, the Australian Securities and Investments Commission said the decision to change the charge was made by the Commonwealth Director of Public Prosecutions, and the penalty was a matter for the court.

Mr Swan came to the attention of ASIC in 2018, after an investigation into the secret financing arrangement between the backdoor-listed video marketing company and Sydney-based alternative asset manager FC Capital.

Rothsay Auditing, where Swan was the lead auditor, was appointed to review the books for the year ending June 30, 2017.

The financial results signed off on by Mr Swan and released to the ASX indicated revenue was up 429 per cent to $13.9 million, and it had $9.2 million of cash. In reality, the business had generated $4.2 million in revenue and its cash balance was just $918,000.er, the Australian Securities and Investments Commission said the decision to change the charge was made by the Commonwealth Director of Public Prosecutions, and the penalty was a matter for the court.

Mr Swan came to the attention of ASIC in 2018, after an investigation into the secret financing arrangement between the backdoor-listed video marketing company and Sydney-based alternative asset manager FC Capital.

Rothsay Auditing, where Swan was the lead auditor, was appointed to review the books for the year ending June 30, 2017.

The financial results signed off on by Mr Swan and released to the ASX indicated revenue was up 429 per cent to $13.9 million, and it had $9.2 million of cash. In reality, the business had generated $4.2 million in revenue and its cash balance was just $918,000.Intermedia CE

Image above shows Intermedia CEO right with Big Un CEO.



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