Ex-Godfrey Pembroke adviser awaits sentencing
A formerGodfrey Pembrokefinancial adviser has pleaded guilty in the Tasmanian Supreme Court to embezzling millions of dollars of client investment assets to fund his out-of-control gambling habit over an eight year period.
Hobart-based Mervyn William Mitchell, who was a director of Godfrey Pembroke franchisee firm Falconwood Holdings, pleaded guilty on Wednesday to 110 fraud-related charges brought by theAustralian Securities and Investments Commission(ASIC) and the Tasmanian Police Fraud Investigation Services.
Mitchell is accused of employing a variety of fraudulent devices and dishonest means to obtain more than $4.5 million belonging to 59 clients or the institutions in which they where invested their money between 1995 and 2003.
The charges were brought under the Superannuation Industry (Supervision) Act, the Corporations Act and the Tasmanian Criminal Code.
The prosecution alleges that client monies were deposited into a Falconwood account, where they were used at Mitchell’s “absolute discretion” to gamble, pay off credit cards, purchase real estate and buy cars.
However the defence said the majority of money went on gambling, starting with slot machines and cascading up to the high rollers' rooms.
Mitchell's theft run came to an end in May 2003 when a client attempted to access his investment account only to find it did not exist.
Godfrey Pembroke has since repaid all but two clients, with Mitchell declared bankrupt and slapped with a lifetime ban from being a securities representative.
Mitchell was remanded in custody pending sentencing next Wednesday.
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