Broker to stand trial on ASIC allegations
A former South Australian options adviser and stockbroker was committed to stand trial in the Adelaide Magistrates Court late last week, facing 52 forgery charges relating to the illegal trading of client accounts and use of their assets as collateral.
Neville John Kakoschke of Thorngate, South Australia, denied the allegations which stemmed from an investigation by the Australian Securities and Investments Commission (ASIC).
Kakoschke was employed as an authorised representative of two stockbroking firms - Dicksons and Bell Potter Securities - for several years between 1997 and 2003 when the alleged offences took place.
ASIC claims that between September 13, 2001 and March 11, 2003, Kakoschke forged collateral lodgement forms and used his clients' shares, without their consent, as security for trading on other client accounts and his personal options accounts.
Kakoschke was a representative of Dicksons between July 1997 and June 2002 and was with Bell Potter Securities from June 2002 to April 2003.
According to the regulator, the former broker’s actions deliberately hid risks and as a result some client accounts were traded beyond their personal financial means. ASIC alleges that Kakoschke’s behaviour contributed to these clients sustaining greater losses than they otherwise would have.
Kakoschke pleaded not guilty to all charges and has been remanded on bail to appear in the District Court on April 4.
AUTHOR
Craig Phillips
Recommended for you
Financial advisers and wealth managers need to exceed their clients’ desires for personalisation, a new EY report writes, and the requirements for this will vary between client segments.
Betashares chief executive, Alex Vynokur, believes technology advancements will enable banks to return to financial advice in the future as the need for advice is greater than ever.
Centrepoint Alliance has upgraded its expected financial results for FY24, thanks to strong adviser recruitment and the acquisition of Queensland advice firm Financial Advice Matters.
The corporate regulator has permanently banned a Melbourne-based financial adviser that “dishonestly attempted to induce clients to transfer their superannuation into a bank account he controlled”.
