Jail for early release super scheme
|
|
A Sydney man has been jailed for two years on charges relating to the operation of an illegal early release superannuation scheme.
The Australian Securities and Investments Commission (ASIC) said the man, Gerard Karl Little of the Sydney suburb of Castlecrag, had been sentenced to two years’ imprisonment with a non-parole period of eight months for unlawfully allowing the early access of superannuation.
The charges against Little followed an ASIC investigation that found he had failed to ensure his self-managed superannuation fund, known as the Little Superannuation Fund (LSF), was maintained in accordance with the sole purpose test.
The investigation found the preserved superannuation benefits of 121 superannuants totaling $3,531,056.93 were deposited with Little into the bank accounts of LSF after being rolled over from 11 complying superannuation funds.
The court was told that Little then used the LSF to obtain early access to the benefits by withdrawing and distributing the funds to superannuants while retaining over $685,000 for himself by way of a commission.
AUTHOR
Mike Taylor
Recommended for you
Results are out for the latest sitting of the ASIC financial advice exam, with the pass rate falling for the second consecutive sitting.
Adviser losses for the end of June have come in 143 per cent higher than the same period last year, and bring the total June loss to over 350.
ASIC’s enforcement action is having an active start to the new financial year, banning a former Queensland financial adviser for 10 years in relation to fees for no service conduct.
ASIC has confirmed the industry funding levy for the 2024–25 financial year, and how much licensees can expect to pay.
