Australian Securities and Investments Commission (ASIC) has began civil penalty proceedings in the Federal Court against IT firm iSignthis Limited (ASX:ISX) and its managing director and its CEO Nickolas John Karantzis.
The proceedings allege breaches by iSignthis of its continuous disclosure obligations and allege false and misleading representations under the Corporations Act.
To add to this, ASIC has also taken into account Karantzis’ involvement in those alleged breaches by iSignthis.
Karantzis, who is now also CEO of National Stock Exchange of Australia is alleged to have failed to take required steps to ensure information that he gave to ASX was not false or misleading.
ASIC alleges that ISX failed to disclose material information in relation to three integration agreements in breach of its continuous disclosure obligations.
The integration agreements were entered into with three customers – Corp Destination Pty Ltd, Fcorp Services Ltd and IMMO servis Group s.r.o.