ASIC investigation results in jailing
The sole director of Sydney-based funds management firm BRG Corporation was sentenced to seven years imprisonment after an investigation by ASIC.
Gregory Nathan, of Rose Bay, was found guilty of five charges of dishonest conduct under the Corporations Act and a further four counts of obtaining money by making false and misleading statements while managing the fund under the NSW State Crimes Act. The court also took into account a further five counts of dishonest conduct on sentencing.
According to the Australian Securities and Investments Commission (ASIC), Nathan was operating an unregistered managed investment scheme known as the BRG Australian Equities Fund and raised almost $8.8 million between 2001 and 2006.
ASIC alleged that Nathan distributed reports to investors falsely stating that the fund was generating positive returns when it was losing substantial funds and also reported to some investors that the fund had $22 million in funds under management, when the most it could have had at any one time was approximately $4.9 million.
It was also alleged that Nathan used approximately $1 million of investors’ funds for gambling purposes.
The fund entered voluntary administration on October 10, 2006, owing investors more than $4 million.
Recommended for you
ASIC believes advice licensees are the “first line of defence” when it comes to future product failures and is urging them to monitor their approved product lists.
Assistant Treasurer, Daniel Mulino, is keen to progress the second tranche of DBFO reforms, acknowledging it is hard for advisers to get the full picture of the legislation without both parts.
A professional year supervisor has been banned for five years after advice provided by his provisional relevant provider was deemed to be inappropriate, the first time this is believed to have occurred.
Pinnacle Investment Management has made a strategic investment in private capital investment firm FinCap to support a new managed accounts platform.
