One.Tel founder wins against ASIC

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One.Tel founder wins against ASIC

Civil case not proven.

Australia's corporate regulator is considering appealing a NSW Supreme Court decision today that dismissed civil proceedings against One.Tel founder Jodee Rich and its finance director Mark Silbermann.

Rich and Silbermann had been taken to task over their role as directors in the collapse of mobile services company One.Tel.

The Australian Securities and Investment Commission (ASIC) was putting a positive spin on the decision in a statement late this afternoon. This despite judge Robert Austin ruling that "ASIC failed to prove any facet of its pleaded case against either defendant", according to a report in the Sydney Morning Herald.

The report said that legal costs for the two former directors could be as high as $15 million. A hearing on costs was set down for later this month.

ASIC chairman Tony D'Aloisio claimed in a statement that the case had "shed light on several important legal issues.

"The case has provided important guidance to ASIC on how to run similar matters in the future," he said.

ASIC said it would review "the lengthy judgement" - some 3,100 pages - in detail and consider whether to appeal "as soon as possible."

One.Tel collapsed in 2001. ASIC previously reached an agreement with John Greaves, who was chairman of the failed telco.


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