The man that was front and centred of the biggest collapse of an audio retailer in Australia has found himself at the centre of another liquidated business that a Federal Court has slapped with a massive $11M in fines.

Danny Assagby the Western Sydney business executive, who moved to place Theatre AT Home into administration, which resulted in Assagby trying to seize millions of dollars’ worth of goods from The Lifestyle Store, which was also subsequently placed into administration has seen Companies that he and his wife controlled accused of “Serious misconduct” by ASIC.

At no stage has Danny Assagby or his wife been individually named in any of the proceedings other than via their shareholder or directorship of Companies that are now subject to multiple investigations.

Assagby who has been hoping to float his online Build Buddy operation, also owns Hudson Homes and previously Equiti Financial Services, has been accused by the former executives of Theatre At Home and The Lifestyle stores which collectively collapsed with debts of over $20M of engaging in “questionable practices” over the collapse of the two audio and custom install business after he loaned money for the establishment of the Theatre At Home business.

Vinod David left & John Kranitis, former executives of The Lifestyle Store and Theatre At Home.

Vinod David the former CEO of The Lifestyle Store and Theatre At Home claims Assagby “Had no legal right” to secure goods from the Lifestyle store with insurers left to pay out millions to suppliers.

Companies currently linked with Danny Hanna Assagby include Alex & Marc Pty Ltd, Build Buddy Pty Ltd, Build Buddy Services Pty Ltd, Danwa Pty Ltd, Equiti Capital Ltd the Company that loaned money to Theatre At Home, Equity Property Pty Ltd, Equity Westmead Development Pty Ltd, Finance Buddy Pty Ltd, Hudson Homes Queensland Pty Ltd, Hudson Homes, Resicorp Property Group Pty Ltd, Yellow Power Company Pty Ltd, Warnervale Project Management Pty Ltd, Equity Funds Management Pty Ltd, Rock Technologies Pty Ltd, and Travolta Holdings Pty Ltd.

Equiti Financial Services Pty Ltd is now in liquidation After a Federal Court Judge ruled that the Company was guilty of breaching conflicted remuneration rules, after it was found that 12 clients were given inappropriate “cookie cutter” advice by three financial advisers who were incentivised to recommend they purchase properties through a related entity.

The Federal Court found that DOD Bookkeeping Pty Ltd, under its previous name Equiti Financial Services, paid $130,250 in bonuses to the advisers who provided template advice to clients to roll over their super into self-managed super funds (SMSFs), and use those funds to buy property through Equiti Property Pty Ltd

The advisers received bonuses, typically an amount between $750 and $1500 in each instance, after clients settled on property offered through Equiti Property.

The number of individual payments to advisers ranged from approximately 22 to 91 a year.

Equiti FS provided financial advice and offered SMSF establishment and administration services, while real estate licensee another Assagby linked Company, Equiti Property recommended properties to purchase, while Equiti Finance offered mortgage broking services.

In his liability judgment, Justice Goodman noted that some of the clients concerned purchased property in the Blue Haven development, with Circle Holdings as the vendor.

The Judge said, “The shareholder of Circle Holdings was Travolta Holdings Pty Ltd, of which Mr Danny Assagby (the founder of the Equiti group of companies) was the sole director together with his wife, Julie Assagby (Seen below with Danny Assagby) , who is listed as a shareholder.

Several years ago the Australian Financial Review claimed that Danny Assagby called himself Danny Hanna and that he was banned by ASIC.

Since writing this story Danny Assagby has contected ChannelNews claiming that he has never been banned by ASI

In 2005,  the Australian Securities and Investments Commission y took action to wind up an illegal investment scheme, known as the North Development Unit Trust, run by the property-spruiking Hanna brothers.

Operating a business known as Morgan Pacific Property Group which like many of Danny Assagby linked Companies it was eventually placed voluntary administration after racking up more than $13 million in debt.

They said they had developed at least 15 projects worth more than $70 million before ASIC stepped in.

They applied to the NSW Supreme Court to wind up the scheme, on the basis that Morgan Pacific Pty Ltd, Morgan Pacific Property Group Pty Ltd and its directors at the time, Paul Hanna and Danny Assagby  had contravened the Corporations Act by operating an unregistered managed investment scheme.

After the name change to Danny H Assagby he established Equiti Capital and Equiti Private Wealth funds management.

During the Federal Court case it was identified that Travolta Holdings is the ultimate parent company of Hudson Homes which is believed to be the main generator of revenues for Assagby.

Danny Assagby likes media attention.

Later this week we will reveal how Equiti Capital Limited via a Company Danwa Pty Ltd provided a line of credit for $5M to Theatre At Home and how this went pear shaped.

50 shares in TaH went to the entity Travolta Holdings Pty Ltd.

It’s also the registered address of Build Buddy a Company that Danny Assagby told ChannelNews he wanted to float with an estimated value of $30M.

Together with Vincenzo Marciano, Co-Founder and Chief Technology Officer and Nick Chandler, Chief Operating Officer, the business is an online portal that allows consumers to supposedly “take control of their home building journey and to save money by avoiding having to engage a traditional builder”.

The Assagby controlled business claims that they use AI to predict what is needed to build a home.

Nick Chandler is the son of former NSW Building Commissioner David Chandler who chose not to continue in the role last year.

In his judgments, Justice Goodman observed that executives of Travolta did not give clients sufficient time to understand the advice given to them with advice focussed on “manoeuvring the clients into property purchases through SMSFs.”

“The contravening conduct was plainly deliberate and extended over a period of several years,” he said.

Investigations of the company began in October 2018, with the issuing of ASIC notices to Equiti Financial Services that it produces documents relating to various transactions.

The 41,000 pages of files were then used as evidence in the case.

In October 2020, prior to the commencement of proceeding against Equiti Financial Services, the defendant entered into a members’ voluntary winding up and Steven Nichols was appointed as liquidator. This is the same Steve Nicols who was appointed as administrators of Theatre At Home.

ASIC documents in ChannelNews possession that relate to the winding up of Theatre At Home reveal that ROQO Pty Ltd was a shareholder of Theatre At Home and that this Company was also placed into voluntary administration by the secured creditor Danwa Pty Ltd another Danny Assagby linked Company.

In this document Steve Nicols claims that he was appointed as voluntary liquidator of DOD Bookkeeping the entity that was investigated by ASIC for questionable business practices.

“The defendant has not formally appeared in this proceeding.

Justice Goodman pointed out that ASIC prosecuted this proceeding for the purposes of general deterrence,”.

ASIC Deputy Chair Sarah Court said the size of the penalty demonstrated the seriousness of the misconduct.

“Misconduct exploiting superannuation savings is an ASIC enforcement priority”.

“In this case the Court found bonuses paid to advisors influenced the advice they provided, resulting in poor financial outcomes for the consumers involved,” Court said.