Former adviser hit by Queensland court
A former Queensland investment adviser has been sentenced to five years imprisonment in relation to 17 charges of misappropriation and one of forgery.
The court results mark the third brush with theAustralian Securities and Investments Commission(ASIC) for Andrew John Smith who was permanently restrained by ASIC from carrying on a securities or investment advice business in 1999. The regulator has also taken action against Smith in relation to an ostrich export scheme.
Smith, who was a former director of the Sunshine Coast based Pan Pac Ad Serve Pty Ltd, was sentenced in the Brisbane District Court on fraud charges brought by ASIC and the Queensland Police and received five years goal, to be suspended after serving 20 months.
ASIC alleged that Smith dishonestly obtained more than $190,000 from investors by inducing them to invest in 'bank debenture trading programs' and in a scheme offering rental rights to caravans, however the funds were invested for Smith’s own personal use.
Smith had promoted the schemes to the pastor and members of the congregation of the Maroochydore Baptist Church and while most of the initial investments were returned the repayments were made from money misappropriated by Smith.
This in turn resulted in charges being brought by the Queensland Police with one of those charges relating to Smith dishonestly obtaining over $400,000 from an aboriginal community.
AUTHOR
Jason Spits
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