The former chief executive of collapsed stockbroking firm BBY Limited appeared in court today (Tuesday) facing fresh charges related to alleged dishonest conduct involving a $192 million share acquisition.

Former BBY CEO Faces Additional Fraud Charges Over $192 Million Share Deal

Arunesh Narain Maharaj was charged with one count of procuring BBY's dishonest conduct in communications with ASX, Australia's primary stock exchange. The charges stem from alleged misconduct between June and December 2014 involving the acquisition of shares in the commodities company Aquila Resources.

The Australian Securities and Investments Commission (ASIC) alleges Maharaj facilitated dishonest communications between BBY and the stock exchange during the substantial share transaction.

"Maharaj aided, abetted, counselled or procured BBY in the course of carrying on a financial services business, to engage in dishonest conduct in communications with ASX Ltd and its subsidiaries, in relation to a $192 million acquisition of shares in Aquila Resources Ltd on behalf of a client," the ASIC commented in the official statement.

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Mounting Legal Challenges

This brings the total charges against Maharaj to three in connection with ASIC's investigation into BBY's operations. He already faces two separate fraud charges related to allegedly helping the firm improperly obtain funding from St George Bank, a Westpac Banking Corporation division.

Those earlier charges, filed in October 2023, accuse Maharaj of facilitating deceptive practices that allowed BBY to access unauthorized overdraft facilities. The alleged misconduct occurred in June 2013 and again from November 2014 to early 2015.

The Downing Centre Local Court adjourned today's proceedings until August 5, 2025. The case is being prosecuted by the Commonwealth Director of Public Prosecutions following ASIC's referral.

Severe Penalties at Stake

The latest charge carries significant potential consequences. Under the Corporations Act, Maharaj faces up to 10 years imprisonment, fines reaching $765,000, or three times the value of any benefits obtained. The maximum penalties have since been increased beyond the timeframe of the alleged offenses.

Each of the existing fraud charges also carries a maximum 10-year prison sentence under New South Wales criminal law.

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BBY's Collapse and Aftermath

BBY Limited operated as a stockbroking and financial services firm before entering voluntary administration in May 2015. The company was subsequently liquidated in June 2015, leaving substantial client shortfalls that affected numerous investors.

ASIC suspended BBY's Australian Financial Services license in May 2015, maintaining that suspension until formally canceling the license in June 2021. The regulator's investigation into the firm's operations continues, suggesting additional developments may emerge.