NSW individual convicted for unlicensed advice
A former crypto promoter from NSW has been convicted for providing unlicensed financial advice.
John Louis Anthony Bigatton of Carss Park, NSW, pleaded guilty to one criminal charge in May 2024 relating to his role as national promoter of online cryptocurrency platform BitConnect.
On 15 July, ASIC announced that he had been convicted in the Sydney District Court for providing unlicensed financial advice contrary to section 911B(1) of the Corporations Act.
He was released on a recognisance to be of good behaviour for three years.
The maximum penalty available was two years’ imprisonment, a fine of 200 penalty units, or both.
Judge Newlinds SC said: “[T]he offending involved a breach of trust in that the recipients of the financial product advice were entitled to have an expectation that they were receiving advice from a sufficiently licensed and regulated individual.”
He noted it had taken six years from the initial investigation for the matter to come to trial due to the complexities of the subject matter and the “enormous amount of documentary material” regarding the case.
BitConnect was a financial services business and online crypto platform which required investors to acquire BitConnect coin (a crypto token) in order to participate in its investment opportunities.
Bigatton provided unlicensed and unauthorised financial advice when he promoted BitConnect in Australia in seminars and on social media between August 2017 and January 2018. In two of the seminars, he told attendees that BitConnect coins would increase in value to at least US$1,000. At another, he stated words to the effect that “BitConnect is better than any term deposit out there”.
He provided financial product advice without holding an Australian Financial Services licence, or authorisation to provide financial services, on six instances at various locations around Australia through four seminars and two social media posts.
ASIC deputy chair Sarah Court said: “Providing unlicensed financial advice denies Australian investors access to key protections and undermines trust and confidence in Australia’s financial services industry. ASIC is committed to taking action against the unlawful promotion of high-risk digital assets to protect Australian investors.”
As a result of his conviction, Bigatton is disqualified from managing corporations for five years.
The matter was prosecuted by the Commonwealth Director of Public Prosecutions following an ASIC referral.
AUTHOR
Laura Dew
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