An investigation by the regulator found that Ropati Broederlow (of Punchbowl, NSW) advised clients to deposit funds into a trust account run by RN Property Pty Ltd - of which he was the sole director.
Broederlow solicited deposits of more than $150,000 from over 20 clients between August 2010 and July 2011, telling his clients the funds would be used to purchase a house.
When clients called for the return of their money, "both RN Property and Mr Broederlow failed to use the funds on their clients' behalf or refund the invested money," ASIC stated.
Broederlow was also the sole director of Yourefund Pty Ltd, which has had its credit cancelled by ASIC because the regulator believes Broederlow "is not a fit and proper person to engage in credit activities".
ASIC Commissioner Peter Kell said the licensing system "provides important rights and protects people and their money".
"Anyone giving investment advice or selling financial products without holding a licence may be breaking the law, and ASIC will continue to pursue these offenders," he said.