The Federal Court of Australia has permanently disqualified former director Larry Dawson of NSW from managing corporations after finding that he had breached his directors' duties.
The outcome arose from Mr Dawson's conduct as a sole director of PW Kitt Co Pty Ltd (now deregistered) between 2019 and 2020. On 29 July 2026, the Federal Court found Mr Dawson contravened his duties due to his role in allowing that company to be used in a scheme that defrauded Australian investors of approximately $7 million in superannuation funds.
ASIC took action due to concerns which included that Mr Dawson had failed in his duties in multiple ways, including setting up company bank accounts and facilitating transfers to cryptocurrency accounts that allowed dissipation of investor funds, failing to have any oversight of the activities undertaken by the company and personally benefiting to some extent.
ASIC submitted that an order permanently disqualifying Mr Dawson from managing corporations was required for the future protection of the public and as a matter of general deterrence.
Justice McElwaine found that overseas-based fraudsters could not have inflicted harm on investors without Mr Dawson breaching his duties, with his Honour saying that "the public requires protection from further conduct of a like nature by Dawson, but also from other persons who may be tempted to participate in schemes to defraud persons of money".
The Federal Court's reasons can be found on Federal Court of Australia.
Background
This proceeding was heard before the Federal Court on 20 July 2026.
ASIC initially took injunctive action in August 2020 to shut down the operation of the scheme and have Receivers and Managers appointed to PW Kitt and Mr Dawson.
The disqualification proceeding was put on hold in 2021 after ASIC became aware Mr Dawson was under criminal investigation by NSW police (see 20-187MR ASIC obtains interim injunctions against Larry Dawson and PW Kitt Co Pty Ltd).
Mr Dawson was subsequently prosecuted and sentenced on 16 August 2024 in relation to the scheme for knowingly dealing with proceeds of crime.
ASIC initially took action based on concerns that PW Kitt and Mr Dawson were involved in obtaining almost $7 million in Australian investor funds by cold-calling Australian consumers and operating the websites smsfadvisory.com and pwkittco.com, which were designed to replicate other licensed businesses of a similar name.
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