But the liquidated Aboriginal Community Benefit Fund, which collapsed in 2022 and lost many Indigenous customers thousands of dollars in premiums, will not have to pay a cent of the penalty.
The Aboriginal Community Benefit Fund , which collapsed in 2022 and lost many Indigenous people thousands of dollars in funeral premiums , has been fined $3.5 million. The Federal Court found the ACBF , which was run by a company now known as Youpla , falsely misrepresented itself as an Aboriginal organisation before going into liquidation.
The fine is viewed as a deterrent to others, but the company will not have to pay the penalty as it is in liquidation.A funeral fund that cost Aboriginal clients thousands of dollars in premiums when it collapsed has been hit with a $3.5 million fine, but will not have to pay it due to being in liquidation. The Aboriginal Community Benefit Fund , run by Youpla Group Pty Ltd, marketed itself as an Indigenous business and sold funeral premiums to customers across the country for 30 years. The Australian Securities and Investments Commission took action against ACBF and Youpla, and a Federal Court penalty of $3.5 million was handed to the company on Thursday.The federal government's immediate financial package will result in some customers in the Kimberley being reimbursed, but others will miss out. In handing down Thursday's judgement, Justice Anthony Goodman said ACBF falsely insinuated it was an Aboriginal-owned company. " overwhelming message conveyed by the marketing material and the point-of-sale documentation deployed by ACBF was that ACBF was an Aboriginal company,""The representation was made to a portion of the population likely to be particularly susceptible to acting upon it."Justice Goodman said the $3.5 million penalty should act as a deterrent to other companies engaging in misleading or fraudulent behaviour.would make $97 million availableThis was expected to help more than 13,000 people across the country, but concerns were raised for those who were not eligible to access the funding. Ms Johnson said while she was glad ASIC had pursued compensation, a $3.5 million penalty was not enough. "There's been a recent determination for Optus to pay $100 million and I think for the level of harm that's been caused to the most vulnerable people, it could have gone a lot higher," she said. "But for them to get away and not be accountable to pay anything is another slap in the face for the people that have been harmed."ASIC chairman Joe Longo said one of the organisation's priorities was to tackle misconduct targeting First Nations people. "Today's penalty is a strong deterrent to anyone who tries to mislead Aboriginal consumers by falsely claiming Aboriginal ownership or management," he said.Photo shows Ms Segal leans on a lectern speaking, Mr Albanese watches behind her.Photo shows A close up photo of Donald Trump speaking to reporters at a cabinet table.Photo shows A woman with black hair, glasses and a colourful blouse.Photo shows Ms Segal leans on a lectern speaking, Mr Albanese watches behind her.
ACBF Funeral Scheme Penalty Aboriginal ASIC Federal Court Indigenous Aboriginal Community Benefit Fund Funeral Premiums
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