ASIC issues fraudster warning
The Australian Securities and Investments Commission (ASIC) is warning financial service consumers to steer clear of businesses associated with Shaun Gregory Morgan.
In a statement released this morning, ASIC revealed that Morgan has been offering "financial services through a number of websites", while not holding an Australian Financial Services Licence.
ASIC Commissioner, John Price, said consumers should, "think twice before dealing with Mr Morgan", and identified Australian Capital Investment Group Pty Ltd and Aussie Prime Securities Pty Ltd, he was associated with.
Morgan was imprisoned in the US after pleading guilty to an offence involving fraud in connection with the provision of financial service. He was also ordered to pay restitution.
"The law offers certain protections only when companies and individuals are licensed by ASIC," Price said.
"Mr Morgan and these companies are not".
ASIC also warned consumers about a company controlled by Morgan, called Auscap Group Holdings Pty Ltd, which was incorporated on 14 January 2015, and claimed to have a number of subsidiaries of banks in Australia as shareholders.
"The banks have told ASIC that they do not hold any shares in Auscap Group Holdings Pty Ltd and have no knowledge of Auscap Group Holdings Pty Ltd," the regulator said.
AUTHOR
Nicholas O'Donoghue
Recommended for you
Sequoia Financial Group has declined by five financial advisers in the past week, four of whom have opened up a new AFSL, according to Wealth Data.
Insignia Financial chief executive Scott Hartley has detailed whether the firm will be selecting an exclusive bidder for the second phase of due diligence as it awaits revised bids from three private equity players.
Insignia Financial has reported a statutory net loss after tax of $17 million in its first half results, although the firm has noted cost optimisation means this is an improvement from a $50 million loss last year.
With alternative funds being described as “impossible” for fund managers to target towards advisers without the support of BDMs for education, Money Management explores the evolving nature of the distribution role.
