Government regulator Australian Securities and Investments Commission (ASIC) filed charges against two men for engaging in trading activities without appropriate license.

Barry John Patrick of Frankston, Victoria has been charged on three counts with carrying on a financial services business and one count of providing financial advice without holding an Australian Financial Services Licence (AFSL), following an investigation by ASIC.

The charges relate to Mr Patrick's alleged involvement with carrying on a financial services business without an AFSL in the following entities:

* Casey Business Finance;

* Cardinia Specialised Securities Ltd; and

* Borocco Investment Services.

Karl Heinz Veljkovic of Beaconsfield, Victoria has been charged on one count with carrying on a financial service business without holding an AFSL in relation to Casey Business Finance.

ASIC alleges that between August 2003 and December 2006 Mr Patrick and Mr Veljkovic encouraged some 40 investors to invest in property development schemes. E.K.B Properties raised approximately $4 million, Sandgrove Specialised Securities Ltd raised approximately $1.5 million and Cardinia Specialised Securities Ltd raised approximately $1 million.

Patrick is also charged with three counts of managing a corporation while disqualified under section 206A of the Corporations Act. ASIC allege Mr Patrick who was disqualified from managing corporations made or participated in the making of decisions that affected the whole, or a substantial part of, the business of E.K.B Properties Pty Ltd, Sandgrove Specialised Securities Ltd and Cardinia Specialised Securities Ltd.

Veljkovic and Patrick appeared in the Melbourne Magistrates Court today. The matter is next listed for a Contest Mention on July 15 2010.