Advisers found guilty of fraud
Two former financial advisers, Tunde Doja and Mohammad Zareei, have been found guilty after an investigation by ASIC found they had defrauded investors of nearly $1 million.
A jury in the Sydney District Court found Doja guilty of eight charges following a three-week trial.
Six charges related to allegations he fraudulently obtained financial advantage for investors by arranging 100 per cent investment loans through Macquarie Bank. It was also found that the loan applications to the bank on behalf of investors contained false information in relation to their financial position.
The jury also found Doja guilty of gaining financial advantage for the company he worked for, Progressive Investment Securities and Capital Investments Group, by fraudulently obtaining commissions of $740,025 from Capital Guaranteed Investments and $341,352 from MAN Investments Australia.
Zareei pleaded guilty on February 12, 2008, to one count of providing financial advice under Progressive Investment Securities without holding a valid Australian financial services licence.
He also pleaded guilty to two counts of inducing investors to apply for 300,000 shares in Macquarie Bank products called OMIP 15-7.
Both Doja and Zareei are awaiting sentencing.
AUTHOR
George Liondis
Recommended for you
Sequoia Financial Group has announced it is selling off its Informed Investor subsidiary which it acquired in April 2022.
Wealth Data has examined which advice business model has seen the most growth since the start of the year including those that offer holistic advice.
Research conducted by Elixir Consulting and Lonsec has quantified the efficiency gains of using managed accounts in financial advice practices in hours per week saved.
With only one-quarter of advice practices actively seeking feedback from clients, the Financial Advice Association Australia has emphasised why this is a critical tool for client retention.
