A former NSW financial adviser, Gabriel Nakhl, has appeared in the Local Court of New South Wales on 19 charges of engaging in dishonest conduct with investor funds following an investigation by the corporate regulator.
The Australian Securities and Investments Commission (ASIC) alleged that Nakhl, from Illawong, knowingly engaged in dishonest conduct when he was an authorised representative of Australian Financial Services Limited from March 2009 to March 2011, and when he was the sole director of SydFA Pty Ltd from March 2011 to about September 2013. Both companies were in liquidation.
His misconduct in relation to 12 investors included:
- Misleading them about the investments he would make on their behalf and on the behalf of their self-managed superannuation funds (SMSFs), including how he would invest the money and the risks and returns of the investments;
- Using investors’ money, including their SMSF money, for reasons other than those he said he would use it for;
- Telling investors the investments were doing well when they were not; and
- Attempting to cover up and conceal his misconduct.
Nakhl did not enter a plea but asked for an adjournment to attain legal advice. The matter was stood over until 11 October, 2016.
In 2014, the Supreme Court of NSW allowed a couple to proceed with legal action against Nakhl, who was the trustee of their SMSF, after suffering losses of more than $2 million from their SMSF and a unit trust he was responsible for.
The Commonwealth Director of Public Prosecutions is prosecuting the matter.
