Respondent breached court order permanently restraining him from conducting a banking business
The Federal Court has found Andrew Morton Garrett in contempt of court for failing to comply with orders made against him following legal action by the Australian Prudential Regulation Authority (APRA).
The prudential regulator sought an injunction in July last year to stop Garrett from carrying on unauthorised banking business. Garrett’s purported businesses include Dynamic Capital Bank, Banque de Capital Dynamique, and Banca di Como.
On Aug. 14, 2023, the court issued orders with immediate effect, permanently restraining Garrett from conducting a banking business or using the word “bank.”
APRA filed contempt proceedings a month later, alleging Garrett breached these orders by continuing to operate and market these businesses as banks in Australia, despite not being authorised to do so.
In a judgment handed down earlier this month, the court supported APRA’s application and found Garrett in contempt of court. It ordered Garrett to pay a $10,000 fine, suspended for 18 months, conditional on compliance with the orders.
APRA said the latest legal action underscores its commitment to protecting Australians from mistakenly believing they are depositing money with an APRA-regulated institution.
The regulator advised anyone uncertain about a financial institution’s banking status to verify it on the register of APRA-regulated authorised deposit-taking institutions before making any transactions.
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