ASIC bans adviser for fraud
AnAustralian Securities and Investments Commission(ASIC) investigation saw a South Australian financial adviser appear in the Adelaide Magistrates Court on Friday charged with fraud.
ASIC alleges that between June 1996 and January 2002, Michael Andrew Smith of Glenalta, South Australia dishonestly concealed material facts to induce clients to deal in securities, in addition to fraudulently converting proceeds of funds entrusted to him for his own or his company’s use or benefit.
Smith operated as a director of financial services firm Mossbrook - the holding company of Mossbrook Financial Planning, to which the charges relate.
Mossbrook itself was placed into receivership on February 8 2002, following the charges laid by ASIC, which relate to client monies in excess of $294,000.
The matter is being prosecuted by the Commonwealth Director of Public Prosecutions, with Smith remanded on bail to answer the charges on April 23.
Last week the peak regulator also banned Western Australian businessman Joseph Karra from acting as a representative of a securities dealer for three years, following his involvement with Exotic Timbers of Australia (Exotic Timbers).
Exotic Timbers was wound-up by the Federal Court in June 2003 following action by the regulator having divested more than 800 woodlots for over $6 million.
ASIC also moved to obtain a permanent injunction against Mark Walter David, restraining him from ever being involved in a business promoting the early release of superannuation, following his participation in a similar scheme.
David also admitted to carrying on a financial services business without holding an Australian Financial Services Licence.
Recommended for you
Licensee Centrepoint Alliance has completed the acquisition of Brighter Super’s annual review service advice book, via Financial Advice Matters.
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
