Permanent ban for Victorian adviser
An adviser who failed to disclose a financial interest in Melbourne stockbroking firms he recommended for clients to invest in has been permanently banned from providing financial services.
The Australian Securities and Investments Commission (ASIC) found 68-year-old Alexander Carrick Ross of Berwick, Victoria, contravened various financial services laws, including misleading and deceiving clients.
ASIC also found that Ross, a former authorised representative of several Melbourne stockbroking firms, was unlikely to comply with financial services laws in future.
Between February 1999 and May 2000 Ross deceived the predominantly-elderly clients of Wilson HTM Stockbroking and Lands Kirwan Tong Stockbroking into investing in Offshore IMF Investments Pty Ltd and Dynamic Business Services Pty Ltd .
Ross advised clients that an investment in the stockbroking companies would generate a return of 12 per cent per annum, without declaring he was a director of Offshore IMF and company secretary of Dynamic, and also failed to disclose to clients that he would receive remuneration from Offshore IMF.
He also failed to disclose his interest in the two companies to Wilson HTM Stockbroking or Lands Kirwan Tong Stockbroking.
Ross' clients invested a total of $960,000 in the companies, but only $531,763 was returned in the form of interest payments.
In July 2004 ASIC obtained orders from the Federal Court to wind up Offshore IMF and Dynamic on the grounds of insolvency. Ross himself was declared bankrupt in June last year.
He has the right to lodge an application for a review of ASIC's decision with the Administrative Appeals Tribunal.
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