ASIC bans adviser for fraud
AnAustralian Securities and Investments Commission(ASIC) investigation saw a South Australian financial adviser appear in the Adelaide Magistrates Court on Friday charged with fraud.
ASIC alleges that between June 1996 and January 2002, Michael Andrew Smith of Glenalta, South Australia dishonestly concealed material facts to induce clients to deal in securities, in addition to fraudulently converting proceeds of funds entrusted to him for his own or his company’s use or benefit.
Smith operated as a director of financial services firm Mossbrook - the holding company of Mossbrook Financial Planning, to which the charges relate.
Mossbrook itself was placed into receivership on February 8 2002, following the charges laid by ASIC, which relate to client monies in excess of $294,000.
The matter is being prosecuted by the Commonwealth Director of Public Prosecutions, with Smith remanded on bail to answer the charges on April 23.
Last week the peak regulator also banned Western Australian businessman Joseph Karra from acting as a representative of a securities dealer for three years, following his involvement with Exotic Timbers of Australia (Exotic Timbers).
Exotic Timbers was wound-up by the Federal Court in June 2003 following action by the regulator having divested more than 800 woodlots for over $6 million.
ASIC also moved to obtain a permanent injunction against Mark Walter David, restraining him from ever being involved in a business promoting the early release of superannuation, following his participation in a similar scheme.
David also admitted to carrying on a financial services business without holding an Australian Financial Services Licence.
Recommended for you
Professional services group AZ NGA has made its first acquisition since announcing a $240 million strategic partnership with US manager Oaktree Capital Management in September.
As Insignia Financial looks to bolster its two financial advice businesses, Shadforth and Bridges, CEO Scott Hartley describes to Money Management how the firm will achieve these strategic growth plans.
Centrepoint Alliance says it is “just getting started” as it looks to drive growth via expanding all three streams of advisers within the business.
AFCA’s latest statistics have shed light on which of the major licensees recorded the most consumer complaints in the last financial year.
