A former Bell Potter Securities client adviser has been permanently banned from providing financial services after he was convicted of offences involving dishonesty.
Lawson Stuart Donald, 38, of Maroubra, New South Wales has been permanently banned by the Australian Securities and Investments Commission (ASIC) after he pleaded guilty to one charge of dishonestly using his position as an employee with the intention of directly or indirectly gaining an advantage for himself or someone else.
Donald was a client adviser at Bell Potter Securities February 2003 to April 2008, and during a three-year period in that time Donald rebooked or transferred trades from one client account to another client account.
According to ASIC, Donald rebooked profitable share trades from a client account to two accounts controlled by him, then sold those shares for a profit. ASIC also stated that Donald rebooked non-profitable share trades from the two accounts controlled by him to a client’s account, avoiding a loss, with the total value of the rebookings at more than $1.7 million.
Donald’s conduct was brought to ASIC’s attention by Bell Potter, after which he faced court in August of last year where he pleaded guilty. He was sentenced in April this year in Sydney’s District Court to two years and six months jail, which was suspended on condition he enter into a two-year good behaviour bond.
The case may return to court as the Commonwealth Director of Public Prosecutions has appealed the sentence handed to Donald on the basis that it is manifestly inadequate.
However, ASIC has permanently banned Donald after it determined this action was necessary to maintain investor and consumer confidence in the financial system, given Donald’s criminal conviction.
Donald has the right to appeal to the Administrative Appeals Tribunal.
