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Maximum ban for NSW man involved with three failed companies.
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Phoenix director disqualified for 5 years
05 April 2022
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ASIC has disqualified former cleaning and labour-hire director Enrico Pucci of Sydney from managing corporations for the maximum period of five years due to his involvement in the failure of three companies.
Mr Pucci was a director of GPSFM Pty Ltd, Grouped Property Services Pty Ltd and National Contractors Pty Ltd between August 2012 and April 2020.
GPSFM provided cleaning, security management and maintenance services to commercial premises, while Grouped Property Services and National Contractors provided labour hire to the group of companies connected to Mr Pucci, including GPSFM.
At the time of ASIC’s decision, the three companies owed a combined total of $9,710,858 to creditors, including $2.4 million to the ATO, $1.27 million to the NSW State Revenue Office and $711,730 in an outstanding judgment on the matter of Fair Work Ombudsman v Grouped Property Services Pty Ltd.
ASIC found that Mr Enrico acted improperly and failed to meet his obligations as director by:
- Acting as the shadow director and controlling mind of National Contractors
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- Failing to ensure the companies complied with their tax obligations
- Failing to ensure consideration was provided to GPSFM when it transferred its business to a related entity
- Failing to ensure that GPSFM and Grouped Property Services kept adequate records
- Failing to ensure records of GPSFM and Grouped Property Services were provided to the liquidator
In addition, ASIC relied on the Federal Court decision in Fair Work Ombudsman v Grouped Property Services Pty Ltd [2016] FCA 1034 that found that while Mr Pucci was its sole director, Grouped Property Services:
- Breached the Fair Work Act 2009 on multiple occasions
- Showed a “flagrant disregard for the law in the face of numerous attempts by the Ombudsman to bring its legal obligations to its attention…”
- Engaged in the “shameless exploitation of a vulnerable workforce and inept attempts to avoid its legal consequences”
The Federal Court also found that Mr Pucci had established a long line of companies that evidence pointed “strongly to a practice of phoenixing”.
ASIC commissioner Danielle Press said: “Illegal phoenix activity causes serious harm that often leads to creditors and employees not being paid money owed to them.
“ASIC takes illegal phoenix activity very seriously and will hold people who engage in this conduct accountable. ASIC will continue to work closely with other agencies within the Phoenix Taskforce to share information and intelligence to detect, deter and disrupt this behaviour.”
Mr Pucci is disqualified from managing corporations until 7 March 2027 and has the right to seek a review of ASIC’s decision by the Administrative Appeals Tribunal.
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