The Australian Securities and Investments Commission said in 2013 Palmer dishonestly obtained a benefit or advantage for Cosmo Developments Pty Ltd and/or the Palmer United Party and others by authorising the transfer of $10 million contrary to the purpose for which the funds were being held.

It is alleged that he dishonestly used his position as a director of  Mineralogy Pty Ltd, a mining company owned by him, in obtaining that advantage.

Palmer has been charged with two counts of contravening section 184(2)(a) of the Corporations Act 2001 (Act) – dishonest use of position as a director and two counts of contravening section 408C(1)(d) of the Criminal Code Act 1899 (Qld) – fraud by dishonestly gaining a benefit or advantage.

ASIC also alleges that, between 31 August 2013 and 3 September 2013, Mr Palmer dishonestly obtained a benefit or advantage for Media Circus Network Pty Ltd and/or PUP by authorising the transfer of $2,167,065.60 contrary to the purpose for which the funds were being held. It is alleged that Mr Palmer dishonestly used his position as a director of Mineralogy in obtaining that advantage.

The maximum penalty for an offence under section 184(2) of the Act is $340,000 or imprisonment for five years, or both.

The maximum penalty for an offence under section 408C of the Code is five years’ imprisonment.  However, if circumstances of aggravation are established the maximum penalty at the time the offences are alleged to have occurred is increased to 12 years’ imprisonment.

The matter was first mentioned in the Brisbane Magistrates Court on 20 March 2020, at which time the matter was adjourned for further mention on 17 July 2020. On 17 July 2020 the matter was adjourned until 28 August 2020.

The matter is being prosecuted by the Commonwealth Director of Public Prosecutions.