Former NSW adviser charged over dishonest conduct
A former financial adviser has been charged over dishonest conduct, having encouraged individuals to acquire shares in his robotic trading technology, resulting in losses of at least $850,000.
Donald James Cuthbertson of Newport, NSW, has been charged with dishonest conduct following an ASIC investigation into allegations he made dishonest representations to investors that resulted in losses of at least $850,000 to at least six investors.
He was the sole director of PWMS, Professional Wealth Management (PWM), and Professional Wealth Investments.
PWM was purportedly involved in the development of technology for robotic trading, and Cuthbertson is alleged to have encouraged investors during seminars between 11 December 2018 and 9 October 2019 to acquire shares with the expectation that PWM would be listed on the ASX.
Cuthbertson appeared before the Downing Centre Local Court on 29 July, facing six charges of dishonest conduct in relation to a financial product, contrary to s1041G of the Corporations Act and one charge of the same offence committed by proxy.
The maximum penalty for each offence is 10 years’ imprisonment and/or 4,500 penalty units – $945,000.
ASIC stated: “PWM was purportedly involved in developing technology for robotic trading across a range of different instruments. During investor seminars, Cuthbertson is alleged to have made dishonest representations related to future potential share valuations, earnings and dividends as part of purported plans to float PWM on the Australian Securities Exchange.”
In 2023, ASIC permanently banned Cuthbertson from providing any financial services, performing any function involved in the carrying on of a financial services business and controlling an entity that carries on a financial services business. The Australian Financial Services Licence of PWMS was also cancelled at this time.
The matter has been adjourned until 23 September 2025 and is being prosecuted by the Office of the Director of Public Prosecutions following a referral of a criminal brief by ASIC.
AUTHOR
Shy-Ann Arkinstall
Recommended for you
AZ NGA has entered into a strategic partnership with national advice firm MiQ Private Wealth, as a way to provide a succession solution, as well as career development opportunities for staff.
While the advice profession struggles under growing operating costs, Adviser Ratings has found more than half of practices – some 58 per cent – that generate less than $250,000 in revenue report no profit at all.
The Federal Court has ordered the freezing of assets and the appointment of receivers to two entities linked to Australian Fiduciaries, ASIC’s latest move in an ongoing investigation into the company’s managed investment schemes.
Off the back of the August adviser exam results, the profession has seen 17 new entrants hit the Financial Adviser Register (FAR) this week, helping numbers return to positive territory.
