20^th December, 2011

The gaoling of disgraced former Newcastle liquidator Stuart Ariff on fraud charges should serve as a warning that such practices won't be tolerated.

The Nationals Senator for New South Wales John Williams says it will be a small comfort to the victims of Ariff that he has received a six years gaol term with a non-parole period of three years and six months, but it doesn't get their money or businesses back.

Senator Williams said he had not been aware of Stuart Ariff when he instigated the 2009 Senate inquiry into liquidators and administrators, but the Newcastle liquidator quickly became its main focus.

"The allegations made against him in submissions and evidence were astounding. The Australian Securities and Investments Commission (ASIC) were quickly on the defensive when it was revealed it had received complaints about Ariff for many years before it acted.

That inquiry and subsequent investigation into Stuart Ariff's activities have now given people hope that their concerns about some practices in the insolvency industry will be listened to and acted upon.

I believe most in the industry act in a professional manner, but for the small number who don't, this gaol term sends a clear message to them to clean up their act or face the consequences.

Whilst ASIC brought the proceedings against Stuart Ariff, it too should have learnt some valuable lessons including being more responsive and diligent when complaints are brought to it", Senator Williams said.

ENDS