A former Adelaide options adviser and stockbroker has been sentenced to two and a half years in prison.
The Australian Securities and Investments Commission (ASIC) alleged that between September 2001 and March 2003, Neville Kakoschke of Thorngate in South Australia forged collateral lodgement forms allowing him to use his clients’ shares, without their consent, as security for trading on other clients’ accounts as well as for his personal options accounts.
This placed client shares worth more than $1 million at risk without their knowledge.
As a result, some of his clients had no further collateral available to enable them to continue options trading.
It was alleged that rather than tell these clients the true situation, Kakoschke forged the third party collateral forms and used this collateral to continue trading on these accounts.
Kakoschke was permanently banned from involvement in the financial services industry by ASIC on June 30, 2004.
