The corporate watchdog has taken a Bathurst financial adviser to court who is charged with six counts of using his position dishonestly, and one count of dishonestly obtaining financial advantage by deception.
Keith James Flowers, previously known as Nigel Keith Flowers, between 1991 and 2012 primarily provided financial services to medical and dental professions in Australia. He was the founder and controller of Flowers Financial Group, and the director of Flowers Financial Management (FFM) and 1Source Wholesale Investments.
The Australian Securities and Investments Commission (ASIC) said in 2001 Flowers and Flowers Financial Group raised seed capital to float an amalgamation of several financial planning businesses.
1Source Wholesale was utilised as the trustee company to hold funds for the proposed float and initial public offering (IPO).
ASIC alleged between June 2011 and April 2012, Flowers used his position as a director of 1Source Wholesale dishonestly, with the intention of gaining advantage for either himself or FFM, by causing the transfer/withdrawal of $179,500 of seed capital.
The watchdog also alleged that the adviser falsely claimed that $30,000 raised for the failed IPO would be returned to investors after the float was cancelled but that he instead applied the funds for his own benefit and for 1Source Holdings.
The matter has been adjourned to 15 October, 2019.