Goldsky director charged with dishonest conduct

On 12 April 2021, Kenneth Charles Grace appeared in the Tweed Heads Local Court charged with eight counts of engaging in dishonest conduct and one count of operating a financial services business without a licence.

At the relevant time, Mr Grace was the Director of Goldsky Asset Management Australia Pty Ltd, Goldsky Global Access Fund Pty Ltd and Goldsky Investments Pty Ltd (Goldsky) as well as a US-based company, Goldsky Asset Management LLC.

Mr Grace based his business in Kingscliff NSW and raised monies from Australian investors through Goldsky and Goldsky Asset Management LLC. Investors included those from Mr Grace’s local area as well as high-profile Australian sportspeople.

ASIC alleges between November 2014 and October 2018, Mr Grace represented to investors that their money would be invested in a managed fund which was operated by Goldsky and used for trading.

ASIC alleges Mr Grace did not apply the majority of investor monies to investment activity and those that were used for trading did not generate the profits that he represented to investors.

ASIC further alleges that funds were used to pay returns and redemptions to existing investors and were also used to pay for the lifestyle expenses of Mr Grace and his immediate family.

The criminal charges allege Mr Grace contravened the Corporations Act by engaging in dishonest conduct and operating a financial services business without a licence. At the relevant time, these charges carried maximum penalties of 10 years and two years imprisonment respectively.

Mr Grace was granted conditional bail and the matter was adjourned to 7 June 2021.

The Commonwealth Director of Public Prosecutions is prosecuting the matter after a referral from ASIC.


In November 2018, ASIC successfully obtained orders to freeze Goldsky associated bank accounts and appoint a receiver and in January 2019, ASIC obtained further orders to wind up the Goldsky companies (18-333MR).

In May 2019, the Queensland Supreme Court made declarations that Goldsky had breached the Corporations Act by operating a financial services business without an Australian Financial Services licence (19-109MR).

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