Court upholds appeal by former financial adviser
The New South Wales Court of Appeal has reduced the sentence given to a former Fundamental Group financial adviser in relation to six charges of dishonest conduct laid by the Australian Securities and Investments Commission (ASIC).
In April 2008, Peter Braun of New South Wales pleaded guilty to engaging in dishonest conduct.
In July 2008, Braun was sentenced in the Sydney District Court to a total of three years and nine months jail with a non-parole period of two years and five months. However, the Court of Appeal imposed a sentence of two years and eight months jail with a non-parole period of one year and eight months.
ASIC alleged Braun was responsible for managing approximately $1.2 million on behalf of six investors who were advised they were investing their money into individual accounts, which would then be traded by Braun.
ASIC alleged these funds were, in fact, pooled into one account and Braun subsequently provided reports that contained false and misleading information regarding the value of investments between July 2005 and October 2006. Almost $840,000 was lost.
Braun was also sentenced on a further two charges under the New South Wales Crimes Act of making false instruments in relation to ‘buy and sell share contract notes’ provided to an investor. These charges followed allegations by ASIC that Braun forged the documents to conceal the true state of the funds he was managing on the investor’s behalf.
Braun will be eligible for release from prison on March 24, 2010.
In November 2006, Fundamental Group entered into voluntary administration owing investors about $1.3 million. All of the funds were lost through inappropriate share trading by Braun.
Recommended for you
Financial Services Minister, Stephen Jones, has assured the cost and time to enter the financial advice profession will soon be halved, as shadow treasurer Angus Taylor pledges to reach 30,000 advisers.
The positive results of the latest financial adviser exam have helped the advice profession reach 15,600 yet again, according to Wealth Data analysis.
Financial advice firms have told Adviser Ratings they are planning to increase their compliance spend by almost a third, including on enhancements to their cyber security which ASIC has identified as an enforcement priority.
The digital advice platform is officially launching into the financial advice sector, offering up its services to practices as a means of engaging with the next generation of clients.
