ASIC gives permanent ban after fraud charges
The corporate regulator has permanently banned Sandeep Madhoji from providing financial services or engaging in credit activity after he was sentenced to imprisonment for fraud charges.
The Australian Securities and investments Commission (ASIC) said Madhoji, from Brisbane, misused clients' funds by applying some client's fund to cover the loss made on other client portfolios.
As a result of Madhoji's recommended trading strategy 14 clients collectively lost $3,251,281.
ASIC said Madhoji made false statements to his licence holder, Redwood Capital Group, and to his clients to conceal his losses.
"He acted outside his authority by making multiple unauthorised transfers and withdrawals from the accounts to hide the losses. Mr Madhoji also falsified client account statements in relation to the relevant transactions," ASIC said.
"Mr Madhoji committed these offences to enhance his reputation to clients and create an illusion that he was a highly successful trader."
Last month, Madhoji was sentenced to 7.5 years' imprisonment with a non-parole period of 22 months in the Brisbane District court on 55 charges of fraud.
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