Former Brisbane adviser charged with $5.9m fraud
Former Brisbane-based financial adviser Ben Jayaweera has faced six charges of fraud in the Brisbane Magistrates Court involving around $5.9 million following an investigation by the regulator.
The Australian Securities and Investments Commission (ASIC) alleged that between September 2013 to October 2015, Jayaweera “dishonestly caused a detriment to numerous clients whilst an authorised representative of Growth Plus Financial Group Pty Limited”.
Jayaweera was the director of Growth Plus, which held an Australian Financial Services license and operated an unregistered managed investments scheme known as the Australian Diversified Sector Income Fund (ADSIF), the regulator said.
ASIC alleged Jayaweera represented that ADSIF was a diversified fund, when in reality he was diverting the funds of investors into a single project - an abalone farm in South Australia which was operated by entities under his control.
The charges against Jayaweera carry a maximum penalty of up to 12 years imprisonment, ASIC said.
He was granted conditional bail and the matter was adjourned until 13 July, 2018.
Recommended for you
Government has introduced a bill to Parliament to legislate the first stream of the QAR reforms.
ASIC now has a 1:1 ratio when it comes to court success in the enforcement of crypto activities and more action is expected as Treasury seeks to introduce a regulatory framework.
A leading governance body has hit out at “specialist interest groups proposing ad hoc law reform” when it comes to reforms of financial services legislation and believes an independent body is needed.
The release of ALRC’s final report into financial services legislation has highlighted financial advice as a “significant” focus as it seeks to reduce costs and help advisers understand their obligations, alongside the Quality of Advice Review.