Two year’s jail for dishonest adviser
A former director of Freeman Hall Investment Services has been sentenced to a maximum of two years in jail after being convicted on two charges of failing to act honestly while operating as a licensed securities dealer.
John Charles Freeman, a former investment advisor who pleaded guilty to the charges in August, will serve a minimum of nine months in prison after the decision in the County Court of Victoria last Friday.
TheAustralian Securities and Investments Commission (ASIC)had alleged that between February and August 1998, Freeman obtained $174,300 of clients’ funds which he used for his own purposes. A portion of the funds were used to pay the debts of Bankswood Developments, a company in which Freeman was a director.
Freeman’s clients were told that the funds were being used to purchase publicly listed securities in their own names.
An investigation into Freeman’s conduct was launched by ASIC in 1998 after complaints were made against him by a member of the public.
The subsequent case was prosecuted by the Commonwealth Director of Public Prosecutions.
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.
