Court upholds appeal by former financial adviser
The New South Wales Court of Appeal has reduced the sentence given to a former Fundamental Group financial adviser in relation to six charges of dishonest conduct laid by the Australian Securities and Investments Commission (ASIC).
In April 2008, Peter Braun of New South Wales pleaded guilty to engaging in dishonest conduct.
In July 2008, Braun was sentenced in the Sydney District Court to a total of three years and nine months jail with a non-parole period of two years and five months. However, the Court of Appeal imposed a sentence of two years and eight months jail with a non-parole period of one year and eight months.
ASIC alleged Braun was responsible for managing approximately $1.2 million on behalf of six investors who were advised they were investing their money into individual accounts, which would then be traded by Braun.
ASIC alleged these funds were, in fact, pooled into one account and Braun subsequently provided reports that contained false and misleading information regarding the value of investments between July 2005 and October 2006. Almost $840,000 was lost.
Braun was also sentenced on a further two charges under the New South Wales Crimes Act of making false instruments in relation to ‘buy and sell share contract notes’ provided to an investor. These charges followed allegations by ASIC that Braun forged the documents to conceal the true state of the funds he was managing on the investor’s behalf.
Braun will be eligible for release from prison on March 24, 2010.
In November 2006, Fundamental Group entered into voluntary administration owing investors about $1.3 million. All of the funds were lost through inappropriate share trading by Braun.
Recommended for you
The top five licensees are demonstrating a “strong recovery” from losses in the first half of the year, and the gap is narrowing between their respective adviser numbers.
With many advisers preparing to retire or sell up, business advisory firm Business Health believes advisers need to take a proactive approach to informing their clients of succession plans.
Retirement commentators have flagged that almost a third of Australians over 50 are unprepared for the longevity of retirement and are falling behind APAC peers in their preparations and advice engagement.
As private markets continue to garner investor interest, Netwealth’s series of private market reports have revealed how much advisers and wealth managers are allocating, as well as a growing attraction to evergreen funds.
