Two years jail for director
John Robert Houghton, a former director of Houghton & Associates, last week received a two year jail sentence after pleading guilty to 26 charges of fraudently missapropriating $1.3 million from wholesale superannuation investment pools.
The former superannuation investment consultant collected money from policy holders and invested this in wholesale pools with Mercantile Mutual and Prudential.
He then drew down the invested assets under the pooled contracts and used the money for personal use, including some unsuccessful investments such as the Dianne Copper Mine.
Following an audit request from the Bankstown District Sports Club in June last year regarding the assets in its superannuation fund, Houghton gave himself up to the New South Wales Commercial Crime Agency.
He was then investigated by the Australian Securities and Investments Commission (ASIC) , which drew up the charges against him.
According to the facts presented by the Crown, more than $2 million was "misapplied", but policy holders have since had their financial positions restored by Mercantile Mutual and Prudential.
Houghton will be eligible for parole on September 21, 2000.
Recommended for you
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
Having peaked at more than 40 per cent growth since the first M&A bid, Insignia Financial shares have returned to earth six months later as the company awaits a final decision from CC Capital.