Melbourne adviser falls for Nigerian scam
A Melbourne financial adviser has been permanently banned from the industry after falling for a Nigerian letter scam.
Robert Andrew Street, who operated the Box Hill-based financial planning business called ‘Making Dollars & Sense’, and who until October 2002 was a securities representative for Grosvenor Securities, has been committed to stand trial in the County Court of Victoria on charges laid by theAustralian Securities and Investments Commission(ASIC).
ASIC alleges that between April and August 2002, Street obtained more than $700,000 from several clients by misrepresenting the nature and risk of the purposes for which their money would be used.
ASIC alleges that Street, through his company Tira Pty Ltd, transferred the money to various overseas destinations after falling for a Nigerian scam letter.
Street received a proposal from a person purporting to be the Reverend Sam Kukah, Chairman of the Presidential Payment Debt Reconciliation Committee in Nigeria, who offered to transfer US$65 million to Street upon payment of certain upfront fees.
“This type of proposal is commonly known as the Nigerian letter scam. We urge all investors to avoid putting money into unsolicited get-rich-quick offers of this type,” ASIC executive director consumer protection Peter Kell said, when Street first consented to ASIC orders relating to the scam.
Street was committed for trial on five counts of obtaining financial advantage by deception, under the Crimes Act (Victoria), and pleaded guilty to all charges.
ASIC had previously obtained orders in the Federal Court, appointing liquidators to Street’s companies, and also accepted an enforceable undertaking from Street that he be permanently excluded from the financial services industry.
Street is to appear in the Victorian County Court on 24 June 2004.
Recommended for you
Two law firms have highlighted licensees’ responsibility to ensure they have sufficient cyber security measures in light of the enforcement action against Fortnum Private Wealth.
A former director has pleaded guilty to providing financial product advice without holding an AFSL which saw almost $2 million transferred to him.
Commonwealth Private Limited, a subsidiary of Commonwealth Bank of Australia, has launched a wholesale offering with the help of JPMAM.
Shaw and Partners’ new national head of private wealth believes the biggest challenge for financial advisers right now is being able to deliver efficient advice delivery amid a complex regulatory environment and growing investment universe.
