A former Sydney-based financial planner has pleaded guilty to charges relating to dishonestly obtaining more than $1 million by using client collateral to make margin loan applications.
The Australian Securities and Investments Commission (ASIC) said Darren Wise of Rhodes, New South Wales, a former financial adviser had pleaded guilty in the Maroochydore Magistrates Court to three charges of dishonestly gaining a benefit, the making of false documents, and use of false documents involving over $1 million of his clients’ assets.
It said the charges had been laid following an ASIC investigation and that that Wise had admitted that between 23 October 1997 and 10 March 2006 he:
- created six applications for margin loans which falsely stated that clients had agreed to act as guarantors for the margin loans;
- provided the false margin lending applications with the intention of fraudulently inducing the lender to provide him margin loans; and on 67 separate occasions dishonestly gained a benefit for himself by lodging securities owned by five clients as collateral for the margin loans without the clients’ authorisation.
The ASIC statement said Wise dishonestly obtained a total of $1,070,700 under the margin loans as a result of his fraudulent application of client securities as collateral and used the money for his own purposes.
Wise was granted bail and has been committed to the Maroochydore District Court for sentence on a date to be fixed.
