Advisers found guilty of fraud
Two former financial advisers, Tunde Doja and Mohammad Zareei, have been found guilty after an investigation by ASIC found they had defrauded investors of nearly $1 million.
A jury in the Sydney District Court found Doja guilty of eight charges following a three-week trial.
Six charges related to allegations he fraudulently obtained financial advantage for investors by arranging 100 per cent investment loans through Macquarie Bank. It was also found that the loan applications to the bank on behalf of investors contained false information in relation to their financial position.
The jury also found Doja guilty of gaining financial advantage for the company he worked for, Progressive Investment Securities and Capital Investments Group, by fraudulently obtaining commissions of $740,025 from Capital Guaranteed Investments and $341,352 from MAN Investments Australia.
Zareei pleaded guilty on February 12, 2008, to one count of providing financial advice under Progressive Investment Securities without holding a valid Australian financial services licence.
He also pleaded guilty to two counts of inducing investors to apply for 300,000 shares in Macquarie Bank products called OMIP 15-7.
Both Doja and Zareei are awaiting sentencing.
Recommended for you
The top five licensees are demonstrating a “strong recovery” from losses in the first half of the year, and the gap is narrowing between their respective adviser numbers.
With many advisers preparing to retire or sell up, business advisory firm Business Health believes advisers need to take a proactive approach to informing their clients of succession plans.
Retirement commentators have flagged that almost a third of Australians over 50 are unprepared for the longevity of retirement and are falling behind APAC peers in their preparations and advice engagement.
As private markets continue to garner investor interest, Netwealth’s series of private market reports have revealed how much advisers and wealth managers are allocating, as well as a growing attraction to evergreen funds.
