Super siphoned into petrol stations: ASIC
Two Victorian men who convinced their clients to roll their superannuation benefits into a self-managed super fund before pumping the money into their own petrol station businesses have been charged with fraud.
Karl Heinz Hermann Veljkovic and Barry John Patrick faced a slew of charges between them in the Melbourne magistrates court last Friday, including obtaining property by deception, fraudulently inducing persons to redeem their superannuation, providing unlicensed investment advice and failing to declare personal interests when giving it.
According to the Australian Securities and Investments Commission (ASIC), who investigated the matter, the two men used clients’ money to support a host of companies they ran, with most of the money put into the operation of petrol stations in the Gippsland towns of Moe, Morwell and Rawson.
The allegedly fraudulent transactions were made through a business called Teilis Financial Services, which is now in liquidation, and was not licensed.
Patrick reserved his plea and will stand trial on April 28, 2006.
Veljkovic will appear in court again on August 21, 2006.
Teilis Financial Services and another five companies operated by the two men, including Supatrust Finance and Pacific Petroleum Services, were placed into liquidation in October 2001 following court orders triggered by the ASIC investigation.
The liquidator found that there was not enough money left in the failed companies to give investors any of their money back.
Recommended for you
As advisers risk losing two-thirds of FUA during the $3.5 trillion wealth transfer, two co-founders underscore why fostering trust with the next generation is vital to retaining intergenerational wealth.
As advisers seek greater insights into FSCP determinations, what are the various options considered by the panel and can a decision be appealed?
Amid the current financial adviser shortage, advice firm Link Wealth is looking to expand its financial literacy program for high school students across the country.
TAL Risk Academy has updated its range of ethics courses to help financial advisers meet their CPD requirements following adviser feedback, including interpreting FSCP determinations.
