Mr Paul John Rana has been sentenced in the Federal Court, Melbourne to six months imprisonment following conviction for offences under the Trade Practices Act 1974.
The offences relate to Mr Rana's failure and his involvement in the failure by other parties to comply with notices issued under section 155 of the Trade Practices Act* requiring production of certain information and documents to the Australian Competition and Consumer Commission.
In late 2006 the ACCC issued a number of notices to Mr Paul Rana and certain NuEra companies with which Mr Rana was associated in relation to alleged contraventions by them of the Act concerning false, misleading and unconscionable conduct towards persons suffering terminal illness (primarily cancer). Mr Rana and the NuEra companies did not comply with these ACCC notices.
In addition to Mr Paul Rana's conviction, Justice North also convicted Mr Rana's son, Mr Micheal Rana and NuEra Wellness Centre Pty Ltd for their involvement in failing to comply with similar notices issued by the ACCC. Mr Micheal Rana who spent ten days in custody was sentenced to two months imprisonment wholly suspended with the order that he be on a period of good behaviour for eighteen months. NuEra Wellness Centre Pty Ltd was fined $6,000.
Justice North's judgment in relation to Mr Paul Rana was given against a backdrop involving an ACCC civil proceeding in 2007 against Mr Rana and others for serious breaches of numerous consumer protection and unconscionable conduct provisions of the Trade Practices Act. In this earlier proceeding it had been observed Mr Paul Rana and others had engaged in conduct which reveal[ed] a consistently cynical and heartless exploitation of cancer victims and their relatives when they were at their most vulnerable**.
Also of importance, in Justice North's judgment was conduct by Mr Paul Rana and others in 2007 which involved them sending a series of strange documents couched in pseudo legal medieval language to persons, including ACCC witnesses, demanding $294M. This led to the ACCC taking further successful action against Mr Paul Rana and others to restrain them from harassing ACCC's witnesses.**
In handing down the six month jail sentence for Mr Paul Rana, Justice North noted s.155 of the Act provides the ACCC with a powerful investigative tool and that by providing for a maximum penalty of 12 months imprisonment, Parliament had indicated the seriousness with which it regards a failure to comply with such a notice.
Justice North observed, "the offences in the present case had the result that people dying of cancer and/or their families were further traumatized by having to give information to the ACCC so that it could bring the civil proceeding against Paul Rana to ensure that his conduct was stopped. Justice North remarked that this "was a particularly cruel consequence of Paul Rana's conduct," and that "it caused further distress to people in a vulnerable position."
ACCC Chairman, Mr Graeme Samuel, said the sentence reflected the seriousness of obstructing investigations conducted by the ACCC and is another clear recognition by the court of the importance of this section as a potent investigative instrument.
"This is a significant case in the enforcement landscape for persons who fail to comply with s.155 notices served by the ACCC. Before failing to comply with a notice (by not responding or providing a false or misleading response) the recipient should bear this case in mind.
"The ACCC will not hesitate in appropriate circumstances to have offending persons prosecuted and the outcome of such a prosecution may well involve a real term of imprisonment. This is by no means a smack on the wrist offence."
Turning to the various legal actions taken against Mr Paul Rana and others, Mr Samuel said the ACCC is an unforgiving and harsh regulator where the contravening conduct threatens the welfare of consumers and endangers the public interest.
"Companies and individuals should know the ACCC has a suite of enforcement and other options available to it which will be exercised rigorously and comprehensively.
"The present case serves as a clear example of the ACCC's resolve and ability to deal with offending conduct in an extensive fashion involving as it did a criminal prosecution, a civil proceeding, an urgent action for interlocutory relief and the bankruptcy of Paul Rana and other individuals***."
The charges against Mr Paul Rana, Mr Micheal Rana and NuEra Wellness Centre Pty Ltd were prosecuted by the Commonwealth Director of Public Prosecutions.