ASIC charges former Bell Potter Securities client adviser
A former senior client advisor with Bell Potter Securities Limited, Glenn Russell Evans, has been charged with 15 counts of fraudulent conduct involving more than $1.06 million, following an ASIC investigation.
ASIC allege Evans entered into contracts with individuals to invest funds while he was a director of Kismet Trading during his employment as senior client advisor for stockbroking firm Bell Potter Securities until his resignation in October 2008.
Appearing before Sydney's Downing Centre Local Court, Evans is charged with using the funds for personal use rather than investing in Australian shares.
Evans invested client funds in two types of investment funds through Kismet Trading (which was in liquidation at the time): individually managed funds which required a minimum $100,000 investment for an indefinite period of time, and pooled investment funds which required a minimum of $10,000 for a two-year period.
They were viewed by the firm as staff owned accounts operated by Evans, however client funds were used to facilitate the investments.
ASIC alleges that Evans fraudulently omitted to account to investors the money invested with Kismet in the two types of funds from 2004 to 2008. ASIC also claims Evans is guilty of failure to invest in Australian equities and derivatives, despite being charged to do so, falsification of trading and performance reports, and failure to repay the balance of proceeds to investors
Further, ASIC claims Evans authorised securities in individually managed funds as collateral for his personal trading account with Bell Potter, denying investor funds when he resigned from Bell Potter Securities with debts on his personal trading account.
The case has been adjourned until 1 May 2012, when Evans will be required to reappear in court.
AUTHOR
Staff Writer
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.
