Goldsky director charged for dishonesty
Goldsky director, Kenneth Charles Grace, has been charged with eight counts of engaging in dishonest conduct and one count of operating a financial services business without a licence.
According to the Australian Securities and Investments Commission (ASIC), between 2014 and 2018, Grace raised monies from Australian investors through Goldsky and Goldsky Asset Management where investors included those from Grace’s local area as well as high-profile Australian sportspeople.
Following this, Grace did not apply the majority of investor monies to investment activity and those that were used for trading did not generate the profits that he represented to investors.
ASIC further alleged that funds were used to pay returns and redemptions to existing investors and were also used to pay for the lifestyle expenses of Grace and his immediate family.
The criminal charges alleged Grace contravened the Corporations Act by engaging in dishonest conduct and operating a financial services business without a licence and, at the relevant time, these charges carried maximum penalties of 10 years and two years imprisonment respectively, the corporate regulator said.
According to the ASIC, at the relevant time, Grace was the director of Goldsky Asset Management Australia Pty Ltd, Goldsky Global Access Fund Pty Ltd and Goldsky Investments Pty Ltd as well as a US-based company, Goldsky Asset Management LLC.
Grace, who appeared on 12 March in Tweed Heads Local Court, was granted conditional bail and the matter was adjourned to 7 June, 2021.
The Commonwealth Director of Public Prosecutions is prosecuting the matter after a referral from ASIC.
Recommended for you
It can be extremely hard to realise the gains from financial advice M&A, according to Peloton Partners’ Rob Jones, and more could be gained from firms looking inward at their own practice.
With platforms reporting their quarterly results, there is a clear divide in the adviser markets they are targeting, according to platform specialist Recep Peker, and which would be right for your clients.
The Federal Court has imposed a $10 million penalty on Macquarie Bank for failing to prevent and control unauthorised fee transactions by third parties including financial advisers.
A financial advice firm has seen a weekly decline of 10 advisers, with all moving to a new licensee, while Centrepoint Alliance continues its “growth story”.