Ponzi scheme operator pleads guilty
The Australian Securities and Investments Commission (ASIC) has prosecuted a Victorian woman who it has described as a Ponzi scheme operator.
The regulator announced this week that the woman, Hazel Bernice Brucello, had pleaded guilty in the Melbourne County Court to six counts of deception related to her role as the sole director of a loan and mortgage broking business, Victorian Finance Broking Services.
ASIC said Brucello had pleaded guilty to five counts of obtaining property by deception and one count of obtaining financial advantage by deception.
It said the six counts of deception involved a sum of $2,531,139 that was invested by five investors between 2004 and 2006, with the investors being told the money would be used to provide bridging finance to other clients.
ASIC said the investors were promised between 4 per cent and 5 per cent interest per month on their invested capital.
The regulator said its investigation found the investors were, in fact, being repaid with their own money (as is typical in a Ponzi scheme) and that the scheme was reliant on new funds being invested to meet the promised interest payments.
It said that while some of the victims received interest payments, the capital invested was not repaid.
Brucello will be remanded on bail until early May for a plea hearing and sentencing.
AUTHOR
Mike Taylor
Recommended for you
The shift in scale and consolidation has led to substantial growth in large privately owned licensees, which have tipped past 20 per cent of advisers for the first time to make up 28.3 per cent of the industry.
ETF providers Betashares and BlackRock are reporting increased flows for currency hedged vehicles, but an adviser has warned on the potential tax implications of changing currency.
Bravura chair Matthew Quinn is to step down later this year, following the exit of CEO Andrew Russell, while its future priority is digital advice in Australia.
Financial advice has an important role to play in navigating family discussions around inheritance, according to CFS, with younger generations expecting a windfall of more than $500,000 while older ones try to meet their retirement needs.
