Two of Jenny Hutson's lieutenants charged as G8 Education and ASIC saga unravels further

Written on the 6 April 2018 by Paris Faint

Two of Jenny Hutson's lieutenants charged as G8 Education and ASIC saga unravels further

Two more high-profile business people have been caught in the web of investigation surrounding G8 Education's failed takeover of Affinity Education in 2015.

The Australian Securities and Investment Commission (ASIC) laid multiple charges against former G8 chair Jenny Hutson earlier in the week and has now fired similar shots at two of Hutson's former board members Mary-Anne Greaves and David Burke.

Brisbane general counsel and company secretary Mary-Anne Greaves, former director of Jenny Hutson's Wellington Capital between 2008-2016, has been charged with three counts of giving false and misleading information under oath in June 2016.

David Burke, also a former director of Wellington Capital, has been charged with five counts of giving false and misleading information under oath on two separate occasions; March and June 2016.

The charges against Burke and Greaves are listed for mention at the Brisbane Magistrates Court on Friday 8 June.

Wellington Capital was the Brisbane-based management company which acted as an adviser to Gold Coast financial services group MFS Group before its collapse in 2008.

It was reported that Burke joined the MFS Group board on the recommendation of Hutson in March 2008, just weeks before Wellington Capital was formally appointed as an adviser to MFS.

MFS, which was later rebranded as Ocatviar before finally succumbing to liquidators, collapsed in 2008 with debts of $2.5 billion.

The charges against all three directors - Hutson, Greaves and Burke - tie back to G8 Education's botched takeover attempt of former listed company Affinity Education, of which Jenny Hutson was at the centre.

The proposed between G8 and Affinity became subject to a Takeovers Panel probe which ultimately cost Hutson her job after it was discovered that she had connections with three separate companies that also had a stake in Affinity.

Hutson was connected to Taxonomy, JB Superfund and WestBridge Holdings; all companies which had acquired a significant stake in Affinity Education and were questioned in relation to close connections with G8 Education.

Hutson resigned from the board just days after the takeover collapsed and Affinity Education was instead sold to private equity group Anchorage Capital Partners for $212 million.

It was widely understood that Hutson was forced to bear the brunt of responsibility for the failed Affinity deal.

Yesterday G8 Education responded to the charges laid against Hutson and washed its hands of any connection to the corporate raider's alleged unlawful actions during her tenure.

G8 stated it was not under any scrutiny by ASIC.

""G8 Education has been made aware of a range of charges brought against former chair, Ms Jenny Hutson, on behalf of ASIC," said the company.

"The group confirms that Ms Hutson has been named in the charges and that no allegations have been made against G8 or any other current board member or staff.

"G8 has had no contact from ASIC on this matter since 2016."Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Author: Paris Faint





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