Adele Ferguson, Going for broke on a fee spree (2009) The Australian Online

<http://www.theaustralian.com.au/business/going-for-broke-on-a-fee-spree/story-e6frg8zx-1225738870533>
Adele Ferguson, Senate Probe bodes badly for ASIC (2009) The Age Business Day
<http://www.theage.com.au/business/senate-probe-bodes-badly-for-asic-20091129-jyy1.html>
Adele Ferguson, Watchdog a wimp in Ariff tiff (2009) The Australian Online
<http://www.theaustralian.com.au/news/watchdog-a-wimp-in-ariff-tiff/story-0-1225757245238 >
ASIC to become mean watchdog, The Newcastle Herald (Newcastle) 29 January 2010
Gary Hughes & Adele Ferguson, Gillard joins fray over gutted footy club (2008) The Australian Online
<http://www.theaustralian.com.au/news/gillard-joins-fray-over-footy-club/story-e6frg6o6-1111117669887>
Jason Gordon, Documents taken away- Carlovers files removed from office The Newcastle Herald (Newcastle) 3
November 2009
Joanne McCarthy, Who pays the price? Newcastle Morning Herald (Newcastle) 23 January 2010
Matthew Kelly, Liquidator set to face examiners The Newcastle Herald (Newcastle) 23 January 2010
Matthew Stevens, ASICs guns blazing, but can they shoot straight? (2010) The Australian Online
<http://www.theaustralian.com.au/business/opinion/asics-guns-blazing-but-can-they-shoot-straight/story-e6frg9if-12
25824471425>
Patrick Durkin ASIC warns directors on breaches The Australian Financial Review (Sydney) 27 January 2010
Susannah Moran, One-Tel boss to get $13m costs from ASIC Weekend Australian (Sydney) 6-7 February 2010

30 31

Case Law
Australian Securities and Investment Commission v Stuart Karim Ariff [2009] NSWSC 829
Re Vartelas v Australian Securities Commission (1996) 22 AAR 525; (1966) 14 ACLC 732
Wambo Coal Pty Ltd v Stuart Karim Ariff & 1 Or [2007] NSWSC 589

http://www.aph.gov.au/DocumentStore.ashx?id=e697025f-07f1-443b-b800-5988c4b5391b

Gillard joins fray over gutted footy club

Gary Hughes & Adele Ferguson

The Australian
October 06, 2008 12:00AM

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DEPUTY Prime Minister Julia Gillard has intervened in the battle to save a rugby league club in Armidale in NSW
after a Melbourne underworld financial adviser and alleged money launderer snatched financial control of it.

Ms Gillard's department has quizzed the club's financial administrator about its situation and likely fate after
concerns were raised with her.

Newcastle administrator Stuart Ariff, who is being taken to court by the Australian Securities and Investments
Commission, has told Ms Gillard that the club is expected to be sold in thenear future and that its 12 full- and
part-time employees might be offered re-employment by the new owner.

The Weekend Australian revealed that Melbourne underworld financial adviser and alleged money launderer Tom
Karas gained control of the Armidale YCW Rugby League Club after Mr Ariff sold him a $400,000 mortgage
previously held by the St George Bank.

Mr Karas appointed a receiver to the club in December last year to replace MrAriff, and in April its 14 poker

machines were suddenly removed and the machines' licences sold to other NSW clubs for about $180,000.

In another case involving a notorious Melbourne crime family, Victoria Police's Purana gangland taskforce alleged
in court last year that Mr Karas was involved in a "large scale money-laundering operation" intended to hide
drug-trafficking profits made by the crime family.

Mr Karas has admitted to providing loans to the crime family and underworld identity Mick Gatto, and has business
connections with one of Mr Gatto's associates, casino high-roller John Khoury. But Mr Karas has denied any
involvement in money laundering.

Locals fear that without the essential revenue from its poker machines, the club will have to close its doors.

YCW general manager Daryl Foster has said the club was doing well until Easter, when the receiver pulled the
poker machines out of the club. "If the club closes, it will have a profound impact on the community," he said.

The club's original debts of about $540,000 have more than doubled to $1.3 million, almost entirely because of
$736,300 that Mr Ariff says he is still owed in fees and other expenses.

Mr Ariff told locals in August that a buyer had made an offer for the club, which includes 7ha of land, but refused to
identify the potential new owner or whether the club would remain open.

But he told The Australian any decision about selling the club was now up to Paul Vartelas, the receiver and
manager appointed by Mr Karas. Mr Vartelas did not return calls.

Ms Gillard said in a letter to local federal MP Tony Windsor on September9 that Mr Ariff had told officers from her
Department of Employment and Workplace Relations that the club was "expected to be sold" in the next six to eight
weeks.

"The administrator has advised my department that they anticipate there will be sufficient funds to pay all
outstanding employee entitlements, including superannuation, once the business had been sold," Ms Gillard said in
the letter, a copy of which has been obtained by The Australian. "Employees may be offered re-employment with
the new owner of the Armidale YCW Rugby League Football Club."

Her intervention was prompted by concerns raised with Mr Windsor by an employee that the club might be put into

liquidation and that staff could lose their outstanding entitlements.

Mr Ariff is to face the NSW Supreme Court later this month over his handling of 11 administrations, including a
Melbourne tip and quarry business that involved Mr Ariff making a $400,000 payment to Mr Karas. Mr Karas told
The Australian he used the $400,000 to buy out the Armidale club's mortgage, at Mr Ariff's suggestion.