David Robert Siminton has commenced a 12‑months jail term on a contempt of court charge initiated by the Australian Prudential Regulation Authority (APRA) in relation to the operation of the unauthorised ‘bank’ Terra Nova Cache.

The Federal Court refused to stay Siminton’s jailing pending the High Court hearing an application for special leave to appeal to the High Court. APRA initiated the contempt of court charge after Siminton breached a Court order that froze the assets of Terra Nova Cache. Last week the Federal Court also upheld orders permanently restraining Siminton from operating the unauthorised ‘bank’.  

Siminton is the self-proclaimed ‘Governor of the Principality of Camside’ in Melbourne's South Yarra. APRA commenced Federal Court action against Siminton in December 2005 to restrain him from operating his ‘bank’, which obtained in excess of $5 million from more than 100 depositors.

In November 2007, the Federal Court found Siminton guilty of two separate contempts of court. In the contempt action initiated by APRA, Justice Tracey sentenced Siminton to 12 months jail on eight charges for his persistent concealed personal use of funds in breach of orders made by the Court.

In the second contempt charge, initiated by the Federal Court District Registrar, Siminton was sentenced to four months imprisonment in relation to his failure to pay a fine of $50,000 imposed for a previous contempt conviction in relation to APRA’s action against his ‘bank’. Siminton’s appeal against this second contempt charge was successful in the Federal Court last week.

APRA Deputy Chairman, Mr Ross Jones, said the Full Federal Court decision is one step closer to the time depositors to Terra Nova Cache can receive at least part of the money they placed with Siminton.

‘The contempt conviction should act as a deterrent to anyone who may consider breaching court orders freezing assets over which they have custody or control. APRA considers these orders to be of utmost significance in protecting the interests of depositors, insurance policyholders and superannuation fund members when required.”

In December 2005, APRA obtained interim Court orders restraining Siminton, the ‘Principality of Camside’ and ‘Terra Nova Cache’ from:

•  carrying on banking business in Australia in contravention of the Banking Act 1959;
• using the words ‘bank’, ‘banker’, ‘banking’ or any similar words in relation to its business;
• advertising, representing or stating that they will carry on banking business; and
• dealing with monies held on account in his name, or in the name of parties, other than for limited living expenses.

For further information, see APRA’s media release of 29 November 2007 at www.apra.gov.au/Media-Releases/07_54.cfm.

The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the financial services industry. It oversees banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, friendly societies, and most members of the superannuation industry. APRA is funded largely by the industries that it supervises. It was established on 1 July 1998. APRA currently supervises institutions holding approximately $3 trillion in assets for 21 million Australian depositors, policyholders and superannuation fund members.

Media and industry inquiries only:

Andrew McCutcheon, Public Affairs Manager

Australian Prudential Regulation Authority

Telephone: 02 9210 3143

Mobile:  0417 528 660

All other inquiries:

APRA Contact Centre 1300 131 060.

www.apra.gov.au/media-releases/08_14.cfm