ASIC cracks multi-million dollar fraud
A former Coffs Harbour mortgage broker has pleaded guilty to seven fraud charges relating to over $6 million in misappropriated funds.
An investigation by the Australian Securities and Investments Commission (ASIC) found that between November 1998 and December 2004, Dominic Cincotta defrauded nine former clients out of $6.49 million.
ASIC alleged that Cincotta was supposed to have arranged investments with Perpetual Trustees Australia on behalf of his clients in accounts such as a mortgage offset account, bricks and mortar fund or fixed mortgage investment account, earning interest between 6.75 per cent and 10.75 per cent per annum.
Contrary to this agreement, the funds were instead deposited into accounts controlled by Cincotta, including a St George Bank account and a Perpetual Investment Management cash management account.
Cincotta will reappear in Sydney’s District Court on October 26 for sentencing. He faces a maximum of five years for each count of dishonestly obtaining financial advantage and seven years for the fraudulent misappropriation charges.
Recommended for you
Adviser losses this week are quadruple the same period a year ago, with the industry falling into negative territory for the last 12 months.
Colonial First State has announced the latest manager to join its Edge managed accounts menu, focusing on providing investors with a strategic income.
Rising advice fees has prompted Radar Results to increase its price guide to a minimum of $3,000 per client to reflect the changing shape of the adviser landscape.
Investment consultancy Ascalon Capital has appointed a new partner, who joins from 20 years at Zenith Investment Partners, as well as a new chief executive amid a “bold new chapter” for the firm.
