Wattle adviser found guilty
A Sydney based financial adviser has been sentenced to 300 hours community service and been handed a 12-month, $1000 good behaviour bond, after being found guilty of actions stemming from his role as a promoter for the failed Wattle Group.
Howard Jeffrey Owen was charged following an investigation by theAustralian Securities and Investments Commission(ASIC) into his conduct as a financial adviser.
Owen pleaded guilty to five charges of being knowingly concerned in the promotion of prescribed interests. The charges related to four investors who lost a total of $243,000 invested in the Wattle scheme. The scheme raised more than $160 million from over 2700 investors across Australia.
In passing sentence, Judge Keleman of the Downing Centre District Court says Owen had held himself out as a professional adviser but had failed to scrutinise the nature of the Wattle scheme or to verify information contained in Wattle promotional flyers.
Judge Keleman says Owen also failed to disclose the 20 per cent per annum commission received by his business Fininvest Pty Ltd on funds invested in the Wattle Scheme, or to draw his clients’ attention to the risks involved with an investment promising returns of 50 per cent per annum.
To date, ASIC has placed banning orders on up to 10 advisers involved in the failed Wattle scheme.
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