Former authorised representative of collapsed dealer group Australian Financial Services (AFS) group Gabriel Nakhl has entered into an enforceable undertaking (EU) with the Australian Securities and Investments Commission (ASIC), which permanently bans him from providing financial services.
Nakhl has also agreed not to manage a company for 15 years as part of the EU.
Nakhl, from Illawong, NSW, provided financial advice via his company SydFA Pty Limited, which is now in liquidation.
He is under ongoing investigation for his conduct over his three years at the company.
ASIC is concerned he gave unauthorised financial product advice, and made false and misleading statements and engaged in misleading and deceptive conduct.
This includes making statements about the returns clients should expect and the risk of the investments he promoted.
He is accused of advising some clients, including those in self-managed superannuation funds (SMSFs), to advance money to him so he could invest it in a high interest rate account on their behalf and pay them a fixed return.
Instead he spent the money on his private sports car and motorbike hire business and himself, ASIC said.
“Mr Nakhl breached the trust many investors placed in him,” ASIC Deputy Chairman Peter Kell said.
“Setting up an SMSF is one of the most significant steps an investor can take, and where an individual or company’s conduct unlawfully puts that investment at risk, ASIC will take action.”
He is also accused with misusing his positions as a director for his own advantage.
