ASIC takes tech group iSignthis to court

The corporate watchdog has launched court action against beleaguered technology group iSignthis and its boss John Karantzis alleging they breached their continuous disclosure obligations in regard to three customer agreements.

The Australian Securities and Investments Commission (ASIC) filed a civil suit in the Federal Court over the weekend.

ISignthis provides automated payment verification and payment services to clients to help them meet “know your client” requirements under anti-money laundering regulations. The company and its chief executive Mr Karantzis are expected to vigorously defend the allegations.

ASIC alleges that iSignthis failed to disclose material information in relation to three integration agreements in breach of its continuous disclosure obligations. The integration agreements were entered into with three customers – Corp Destination Pty Ltd, Fcorp Services Ltd and IMMO Servis Group.

The agreements provided one-off integration and set-up services for trading platforms.

ASIC alleges the revenues derived under the agreements resulted in iSignthis achieving performance milestones that caused the allocation of 336,666,667 performance shares, a substantial majority of which were allocated to the directors of iSignthis, including to Mr Karantzis.

More to come