As well as being a shareholder in the Tura Tavern, Mr Ellis was an accountant and principal of financial services company, 2020 Group which had offices in Tura Beach, Jindabyne, Sydney, Baulkham Hills and Newcastle although only the Newcastle and Jindabyne offices remain open.

ASIC claims that Mr Ellis made dishonest statements to an elderly client about where his money was being invested and banned him from providing financial services.

Following the release of the ASIC statement on Mr Ellis, he issued a denial maintaining that the client chose to invest the money with him and that he returned it all to the client.

The ASIC investigation found that Mr Ellis used $200,000 given to him by a client for investment, to pay off his credit card debts and also to purchase real estate.

ASIC found Mr Ellis engaged in dishonest conduct and misleading or deceptive conduct between March 2, 2009 and June 29, 2010 by:

• making dishonest statements to a client about where their money was to be invested

• failing to invest $200,000 he received from a client, instead, using it for his own advantage including paying credit card debts and purchasing personal assets

• engaging in misleading or deceptive conduct in relation to statements made in client letters.

Mr Ellis has said this is not true.

Through his lawyer, Michael France, of Sydney legal firm, Watson Mangioni Lawyers, Mr Ellis said: “The money was not transferred from the client’s self-managed superannuation fund.”

Mr France went on to state that on or about March 2, 2009, Mr Palamountain, through a corporation and trust associated with him, the Marigarth Pty Limited ATF, the Marigarth Trust invested $160,000 with Mr Ellis, or corporations and trusts associated with him and his family. Marigarth Pty is registered to a Pambula Beach address.

Mr Ellis said that he repaid to the client the amount invested plus interest.

Mr Ellis through his lawyer said that there were two separate investments involving one client, who remains a client.

Mr France said the Reasons for Order (from ASIC) record that: "I do not consider that the findings I have made, or the material before me, is sufficient to support a finding that Mr Ellis is not of good fame and character.”

However an ASIC spokesman said: “ASIC stands by the contents of the media release, in that the clients funds were transferred from their SMSF (Self Managed Super Fund). However, we will not confirm the name of the SMSF or the individual client. ASIC confirms that there were multiple breaches involving one client. ASIC does not dispute that the client funds were repaid. ASIC confirms that while the client did not suffer any financial loss, ASIC found that the risk that Mr Ellis exposed the client to was unacceptable.”

Mr Ellis is a director of a number of companies based in Newcastle including 2020 Financial Solutions Pty Ltd and 2020 Accountancy Solutions Pty Ltd (formerly Ellis Business Accountants Pty Ltd). An ASIC spokesman said that its ban impacted his ability to provide financial services, not his ability to be a company director or operate a business. 

ASIC Commissioner Greg Tanzer said: “ASIC will take action to protect self-managed superannuation funds by ensuring they are not accessed and abused by unscrupulous operators like Mr Ellis.” 

Mr Ellis has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC's decision.

In the meantime, the saga over the Tura Tavern, in which Mr Ellis is a major shareholder, continues.

The tavern is expected to go up for auction in about a month’s time after the administrator, Adam Farnsworth, of Dean Willcocks Shepard was appointed the liquidator on February 25.

The Tura Tavern is owned by 28 shareholders from as far afield as Broome, Queensland, Victoria, Jindabyne and the local area. 

The Tura Tavern went into voluntary administration after Mr Ellis called in the administrator. 

Despite the efforts of a group of the shareholders who wanted to keep the tavern open in the hope of trading back into financial stability, the vote went against the group and the liquidator was appointed.

The News Weekly understands that some shareholders have expressed concern over voting arrangements.

Although Mr Ellis was supposed to provide details of the finances relating to the tavern and funds raised from investors, he has yet to do so as the News Weekly went to press.

He has also promised to write to investors with details of what he proposes to offer them.

But the News Weekly has been told that it is unlikely there will be any funds from the sale of the tavern as the bank will have first call on the mortgage rumoured to be $1.2 million.

Australian Securities and Investment Commission (ASIC) staff have been present at creditors meetings held regarding the future of the Tura Tavern.

ASIC will usually not become involved in matters of commercial judgement by a voluntary administrator or deed administrator but it is the responsibility of the voluntary administrator to report to ASIC on possible offences by people involved with the company. 

It is part of the liquidator’s role to enquire into the failure of the company and possible offences by people involved with the company and report to ASIC.

The tavern first opened in December 2006 when it was called the Chook and Ox Tavern, but in August 2008 it closed and in June 2009, it was reopened after Mr Ellis and the shareholders group bought the property.