Adelaide adviser gets suspended sentence
A FORMER South Australian insurance adviser has been handed a suspended sentence by an Adelaide court after being brought up on charges of fraud and deception instigated by the Australian Securitiesand Investments Commission. (ASIC)
Dominic Romeo, who had been banned permanently from providing financial services late last year, was given a jail term of nine months by the Adelaide Magistrates Court, but had the sentence suspended on the condition that he enter into a good behaviour bond for 18 months.
He was also ordered to pay $14,360 in compensation and submit to the supervision of a community corrections officer for 12 months.
ASIC alleged that on seven occasions between February and May last year, Romeo, from Fullarton in South Australia, received money from clients under the proviso that it was to be used to pay insurance premiums.
However, the corporate regulator alleged the payments were instead deposited into a bank account in the name of Arkaba Insurances and used by Romeo for his own purposes.
Romeo was also accused of operating a financial services business without holding a relevant licence.
“ASIC will take action to protect consumers of financial services, particularly where agents or advisers use their position for their personal gain and to the detriment of their clients,” ASIC deputy executive director of enforcement Allen Turton said.
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