Fitness gig for banned director

A BANNED Gold Coast businessman whose financial services firm was drawn into Malaysia’s 1MDB scandal has taken a key role in a new fitness and wellness centre in Bundall.

Paul Rowles last year was disqualified, along with fellow director Clayton Dempsey, by the Australian Securities and Investments Commission from managing corporations and restrained from providing financial services for a period of 10 years for his role in Avestra Asset Management Ltd.

The Federal Court found Mr Rowles and Mr Dempsey had, among other breaches, contravened the Corporations Act through undertaking related party transactions without the approval of members of its managed investment schemes.

The misconduct that gave rise to ASIC’s investigation included the pair funnelling property investments into a fund, the Bridge Global CMC Fund based in the Cayman Islands, that is linked to scandalplagued Malaysian sovereign wealth fund 1MDB.

Money was found to have ended up in the bank account of ex-Malaysian PM Najib Razak, who is standing trial for his alleged role in the scandal.

Mr Rowles has now emerged as the head of business development at the luxurious new Rigs Recovery Centre in Bundall.

The fitness and wellness centre contains a vast array of the latest fitness and wellness equipment, including a DreamPod flotation tank, cryotherapy chamber and ‘dry’ sauna.

Mr Rowles yesterday defended his role in the new business venture stating he was not involved in the management of the centre, which is left to general manager Luella Smith.

“I clean floors and talk to people who come in the door,” he said.

“It is my wife’s business.”

He denied any wrongdoing while at Avestra and claimed he was the “fall guy”.

Mr Rowles said his decision to accept the ban was purely financial.

“I took a 10-year ban because I could not afford to take it to court,” he said.

“My decision was all based around the financial decision, that is the court costs to fight (the disqualification).”

He claimed it would have cost him $700,000 to fight the ban.

Mr Rowles, whose wife Rachael Rowles is listed as sole director of Rigs Recovery Pty Ltd, has another role as head of sales and marketing at Iconic Global Sports.

That business, which is based on the top floor of the Rigs Recovery Centre premises, is a sales, marketing and distribution business focused on publishing sporting memorabilia.

There is no suggestion that he is involved in the management of the business.

An ASIC spokesman said, while it is not able to comment on specific cases, there needs to be evidence that the banned director is managing a corporation and therefore is acting in breach of a disqualification.

Evidence includes proof they make, or participate in making, decisions that affect the whole, or a substantial part, of the business of the corporation or they have the ability to affect significantly the corporation’s financial standing.

“Certainly, we may consider further action if we became aware that someone was involved in managing companies while disqualified, an offence which is punishable by a fine of up to $8500 or one-year imprisonment, or both,” the spokesman said.

I TOOK A 10-YEAR BAN BECAUSE I COULD NOT AFFORD TO TAKE IT TO COURT. PAUL ROWLES