Former NAB adviser jailed for eight years

A former National Australia Bank (NAB) financial planner has been jailed for eight years after pleading guilty in the NSW District Court to eight counts involving nearly $6 million.

The individual, Paul Drakos, of the Central Coast in NSW, had faced charges of dishonestly obtaining a financial advantage by deception, two counts of fraudulent misappropriation and three counts of making and using false documents, following an investigation by the Australian Securities and Investments Commission (ASIC).

Drakos was an authorised representative of NAB from October 1994 until August 2001, during which time the crimes were committed, and operated out of NAB’s Hornsby branch.

ASIC found that Drakos had made recommendations to a number of his NAB clients to invest in the Bahamas-based BSI Corp, which was not a NAB-approved investment. Amounts were then transferred to an account in the Dominican Republic and then subsequently back to a private company account, Strategic Investments Group, which was controlled by Drakos. These funds were then applied to a number of failed business opportunities.

Commenting on the conviction, ASIC executive director of enforcement Jan Redfern said people relied on their financial adviser and rightly expected honest and reliable advice.

“Today’s jailing shows that those in the financial services industry who act illegally can indeed face severe consequences,” she said.

ASIC had permanently banned Drakos from acting as a representative of a dealer or investment adviser in January 2004. He was declared bankrupt in June 2003.