Adviser gets two years jail-term
The Australian Securities and Investments Commission (ASIC) has vowed to continue its crackdown on dishonest financial planners after a Melbourne adviser was sentenced to two-years jail following an investigation by the corporate watchdog.
Mervyn Alexander Roach, of Eltham Victoria, was handed the sentence in the County Court of Victoria yesterday after pleading guilty to two charges of deception and one charge of attempting to pervert the course of justice. He will serve a minimum period of 14 months.
An investigation by ASIC revealed that in August and November 2002, Roach obtained $59,612.33 from two clients, claiming that the money would be invested in property.
But the funds were diverted into accounts Roach controlled to repay a personal debt and to pay debts of Advanced Financial Group - a company controlled by Roach.
The separate charge of attempting to pervert the course of justice “related to an attempt to have a witness give certain evidence in return for payment”, a statement released by ASIC today says.
The two years’ sentence comes on top of a two and a half year jail term already handed down to Roach in August last year for similar offences.
ASIC deputy executive director of enforcement Allen Turton says the watchdog will continue to bring dishonest advisers before the courts.
“The public is entitled to expect financial advisers to act honestly, and in good faith,” he says.
“ASIC will act to ensure that dishonest financial advisers, who put their own interests before those of their clients are brought before the courts, and warns there are very serious consequences of this type of conduct, including jail.”
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