Accountant banned for six years
The Australian Securities and Investments Commission (ASIC) has handed a NSW-based accountant a six-year ban from providing financial services following an investigation.
The regulator found Nicholas James Ellis had been engaged in dishonest conduct and misleading or deceptive conduct between 2 March 2009 and 29 June 2010.
This included:
- making dishonest statements to a client about where their money was to be invested
- failing to invest $200,000 he received from a client, instead using it for his own advantage, including paying credit card debts and purchasing personal items
- engaging in misleading or deceptive conduct in relation to statements made in client letters.
According to ASIC, the money used by Ellis was transferred from an elderly client's self-managed superannuation fund.
Ellis is a director of a number of companies based in Newcastle, including 2020 Financial Solutions and 2020 Accountancy Solutions (formerly Ellis Business Accountants), the regulator stated.
At the time of the misconduct, Ellis and 2020 Financial Solutions were authorised representatives of an Australian financial services licensee.
Ellis has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC's decision.
"Those who blatantly disregard their obligations as a financial service provider will be removed from the industry," ASIC commissioner Greg Tanzer said.
"Banning orders such as this are designed to maintain confidence in the financial services industry, particularly the self-managed super funds space."
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