Unlicensed Sydney adviser gaoled
A New South Wales man has been sentenced to 12 months imprisonment for providing unlicensed advice.
Donald Maxwell pleaded guilty to operating a financial services business, Business Express Success Techniques, without an Australian Financial Services Licence after being discovered by the Australian Securities and Investment Commission (ASIC).
During June 2002 and June 2003, Maxwell raised $1.1 million from three elderly investors in Sydney and Newcastle in relation to property developments.
The 69-year-old came to know about the residential apartment blocks through a former associate and advertised in local papers for potential investors.
In 2004, the property development companies Central Development Group and Oceanwalk Projects were placed into liquidation.
The investors were unable to recover their funds.
ASIC said Maxwell was a discharged bankrupt who would probably declare bankruptcy once again, and it was unlikely the investors would receive compensation.
Maxwell will serve eight months by way of periodic detention and will be released upon entering into a bond of good behaviour for the remaining four months.
The court case commenced in October 2003 and was prosecuted by the Commonwealth Director of Public Prosecutions.
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.
