Adviser’s jail sentence reduced

A former Burnie-based insurance agent and financial adviser sentenced to six years jail last year by the Supreme Court of Tasmania, has successfully appealed the severity of his sentence in the Tasmanian Court of Criminal Appeal.

Last year Joachim Prehn pleaded guilty to 28 counts of fraud following an investigation by theAustralian Securities and Investments Commission(ASIC), which found he had misappropriated $1.7 million in client funds between June 1995 and July 1998.

Originally sentenced to six years jail with a non-parole period of four years and a $10,000 two-year good behaviour bond, the Court of Criminal Appeal varied the recognisance order so that he will be released from jail after serving three years.

During his initial sentence, the court heard that the majority of clients defrauded by Prehn were retirees and other people dependent on their capital for day-to-day living, and that Prehn lost the money gambling.

In February 2000, ASIC permanently banned Prehn from acting as an investment adviser or as a representative of a securities dealer, and obtained Supreme Court orders to appoint a receiver to his business and personal assets, in order to recover funds for investors and creditors.

Meanwhile in Sydney yesterday, Cameron John Watt has been committed to stand trial on 11 charges brought by ASIC.

ASIC alleges that Watt dishonestly used his position as an employee of Baptist Investments & Finance Limited from July 2001 until October 2001 with the intention of directly or indirectly gaining an advantage for himself, through the dishonest application of over $4.1 million.

Watt’s case was adjourned until July 11.