ACBF funeral fund fined $3.5 million for falsely posing as an Aboriginal business
The Aboriginal Community Benefit Fund (ACBF) has been fined $3.5 million for misrepresenting itself as an Indigenous business and causing financial harm to Aboriginal clients. Despite the penalty, the fund, which collapsed in 2022, will not have to pay due to being in liquidation. The Australian Securities and Investments Commission (ASIC) took action against ACBF and Youpla Group Pty Ltd, the company behind it.
A funeral fund marketed as an Indigenous business, the Aboriginal Community Benefit Fund (ACBF) run by Youpla Group Pty Ltd, faced a $3.5 million fine after collapsing in 2022, leaving thousands of Aboriginal Australians without their invested money. The Australian Securities and Investments Commission (ASIC) penalized ACBF and Youpla, emphasizing the false representation of being an Aboriginal-owned company. Despite the fine, as the company is in liquidation, it will not have to pay the penalty.
Justice Anthony Goodman highlighted that ACBF misled customers by implying Aboriginal ownership through marketing materials and visuals. The $3.5 million penalty serves as a warning against deceptive practices. The federal government allocated $97 million to compensate affected customers, aiming to assist over 13,000 individuals nationwide. However, concerns were raised about the eligibility criteria, leaving some without access to compensation.
Financial counsellor Veronica Johnson criticized the penalty as insufficient, advocating for greater accountability. She highlighted the impact on vulnerable individuals who were deceived by ACBF, emphasizing the need for justice and compensation for those affected. ASIC chairman Joe Longo reaffirmed the commitment to combat misconduct targeting First Nations people, stressing the importance of deterring deceptive practices.
According to the source: Australian Broadcasting Corporation.
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